The Kincaid Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate is based on direct labor hours. Estimates for the year just ended are as follows:
Estimated Manufacturing Overhead $240,000
Estimated Direct Labor Hours 40,000
At the end of the year, Kincaid Company records revealed the following information:
Raw Materials Inventory $35,000
Work-In-Process Inventory 60,000
Finished Goods inventory 105,000
Cost of Goods Sold 400,000
Manufacturing Overhead costs incurred 210,000
Actual Direct Labor Hours 39,000
Required:
a. Calculate the predetermined overhead rate for the year.
b. Determine the amount of overhead applied during the year.
c. Determine the amount of underapplied/overapplied manufacturing overhead for the year.
a) Predetermine overhead rate = 240000/40000 = 6 per DLH
b) Applied overhead = 39000*6 = 234000
c) Actual manufacturing overhead = 210000
Applied manufacturing overhead = 234000
Over applied overhead = 234000-210000 = 24000
The Kincaid Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate...
The Dewey Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate is based on direct labor hours. Estimates for the year just ended are as follows: Estimated manufacturing overhead Estimated direct labor hours $300,000 60,000 During the year Dewey Company used 37,000 direct labor hours. At the end of the year, Dewey Company records revealed the following information: Raw materials inventory Work-in-process inventory Finished goods inventory Cost of goods sold Manufacturing overhead costs incurred $...
The Dewey Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate is based on direct labor hours. Estimates for the year just ended are as follows: Estimated manufacturing overhead $300,000 Estimated direct labor hours 60,000 During the year Dewey Company used 37,000 direct labor hours. At the end of the year, Dewey Company records revealed the following information: Raw materials inventory $ 35,000 Work-in-process inventory 60,000 Finished goods inventory 105,000 Cost of goods sold 400,000...
The Sage Company uses a budgeted factory overhead rate to apply
manufacturing overhead to production. The rate is based on direct
labour hours. Estimates for the year 2012 are given
below:
Estimated manufacturing
overhead
$540,100
Estimated direct labour
hours
49,100
During 2012 the Paine Company used 56,250 direct labour hours. At
the end of 2012, the company's records revealed the following
information:
Raw materials inventory
$37,860
Work-in-process inventory
102,560
Finished goods inventory
187,070
Cost of goods sold
667,090
Manufacturing overhead...
Osborn Manufacturing uses a predetermined overhead rate of
$19.20 per direct labor-hour. This predetermined rate was based on
a cost formula that estimates $249,600 of total manufacturing
overhead for an estimated activity level of 13,000 direct
labor-hours. The company actually incurred $247,000 of
manufacturing overhead and 12,500 direct labor-hours during the
period. Required: 1. Determine the amount of underapplied or
overapplied manufacturing overhead for the period. 2. Assume that
the company's underapplied or overapplied overhead is closed to
Cost of...
Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 13,300 direct labor-hours. The company incurred actual total manufacturing overhead costs of $253,000 and 12,800 total direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. Manufacturing overhead overapplied/underapplied (choose one) by ________. 2. Assuming that the...
Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $246,390 of total manufacturing overhead for an estimated activity level of 12,900 direct labor-hours. The company actually incurred $245,000 of manufacturing overhead and 12,400 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...
Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...
Osborn Manufacturing uses a predetermined overhead rate of $18.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $236,880 of total manufacturing overhead for an estimated activity level of 12,600 direct labor-hours. The company actually incurred $233,000 of manufacturing overhead and 12,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...
Osborn Manufacturing uses a predetermined overhead rate of $19.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $269,280 of total manufacturing overhead for an estimated activity level of 13,600 direct labor-hours. The company actually incurred $265,000 of manufacturing overhead and 13,100 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...
Osborn Manufacturing uses a predetermined overhead rate of $18.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $221,430 of total manufacturing overhead for an estimated activity level of 12,100 direct labor-hours. The company actually incurred $217,000 of manufacturing overhead and 11,600 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...