Star Company had actual manufacturing overhead costs of $130,000 and a predetermined overhead rate of $3.50...

Question

Question

Star Company had actual manufacturing overhead costs of $130,000 and a predetermined overhead rate of $3.50 per machine hour

Star Company had actual manufacturing overhead costs of $130,000 and a predetermined overhead rate of during the period. Star

000 and a predetermined overhead rate of $3.50 per machine hour. Star Company worked 45,000 machine hours

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Given,

Actual overhead costs = $130,000

Predetermined overhead rate = $3.50 per machine hour

Machine hours worked during the period = 45,000 hrs

==> Applied manufacturing overhead = Predetermined overhead rate x Machine hours worked

==> Applied manufacturing overhead = $3.50 x 45,000 = $157,500

Therefore, Manufacturing overhead is over-applied by $27,500 ($157,500 - $130,000). Option 'a' is correct.

Add a comment

Answer 2

Similar Homework Help Questions

Star Company had actual manufacturing overhead costs of $130,000 and a predetermined overhead rate of $3.50...

Star Company had actual manufacturing overhead costs of $130,000 and a predetermined overhead rate of $3.50 per machine hour. Star Company worked 45,000 machine hours during the period. Star’s manufacturing overhead is Select one: a. $27,500 overapplied b. $27,500 underapplied c. $28,500 overapplied d. $28,500 underapplied Clear my choice
Osborn Manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was...

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...
year? Walsh Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to...

year? Walsh Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine hours. The Corporation actually worked 105 000 machine-hours and incurred串270 000 n manufacturing overhead costs. By how much wa$ manufacturing overhead underapplied or overapplied for the Select one: a. $2,250 underapplied b. $2,250 overapplied С. $15,000 underapplied d. $15,000 overapplied At the...

Osborn Manufacturing uses a predetermined overhead rate of $19.30 per direct labor-hour. This predetermined rate was...

Osborn Manufacturing uses a predetermined overhead rate of $19.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $252,830 of total manufacturing overhead for an estimated activity level of 13,100 direct labor-hours. The company actually incurred $249,000 of manufacturing overhead and 12,600 direct labor-hours during the period. ints 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...
EXERCISE 2-7 Underapplied and Overapplied Overhead [LO2-7] Osborn Manufacturing uses a predetermined overhead rate of $18.20...

EXERCISE 2-7 Underapplied and Overapplied Overhead [LO2-7] Osborn Manufacturing uses a predetermined overhead rate of $18.20 per direct labor-hour. This predeter- mined rate was based on a cost formula that estimates $218,400 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $215,000 and 11,500 total direct labor-hours during the period. Required . Determine the amount of underapplied or overapplied manufacturing overhead for the period.
Osborn Manufacturing uses a predetermined overhead rate of $19.20 per direct labor-hour. This predetermined rate was...

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...

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead...

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 47,000 actual direct labor-hours and incurred $810,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 45,000 direct labor-hours during the year and incur $765,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was: O underapplied by $34,000 O overapplied by $11,000 O underapplied by $11,000 overapplied by $34,000
I ALWAYS THUMBS UP, THANKS Osborn Manufacturing uses a predetermined overhead rate of $18.90 per direct...

I ALWAYS THUMBS UP, THANKS Osborn Manufacturing uses a predetermined overhead rate of $18.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $240,030 of total manufacturing overhead for an estimated activity level of 12,700 direct labor-hours. The company incurred actual total manufacturing overhead costs of $237,000 and 12,200 total direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period, Manufacturing overhead by 2. Assuming that...
Mackinaw Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing...

Mackinaw Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 17,500 actual direct labor-hours and incurred $148.300 of actual manufacturing overhead cost. They had estimated at the beginning of the year that 16,300 direct labor hours would be worked and S146700 of manufacturing overhead costs incurred. The Corporation had calculated a predetermined overhead rate of $9 per direct labor-hour. The Corporation's manufacturing overhead for the year...

Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was...

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...

Star Company had actual manufacturing overhead costs of $130,000 and a predetermined overhead rate of $3.50...

Homework Answers