1)Direct labor hours = 1.2*160000= 192000 DLH
2)Total variable overhead = supplies + gas
= 218000+54000
= 272000
variable overhead rate= Total variable overhead rate /Direct labor hours
= 272000/192000
= $ 1.42 per DLH
Fixed overhead = 172000+75000+54000+47000+14000+27500+4900+1200+54000
= 449600
2)
Budgeted direct labor hours | 192000 |
variable overhead rate | 1.42 |
Budgeted variable overhead [192000*1.42] | 272640 |
Budgeted fixed overhead | 449600 |
Total budgeted overhead | 722240 |
Fixed overhead rate = 449600/192000= $ 2.34 per DLH
Total overhead rate= 722240/192000= $ 3.76 per DLH
3)New budgeted Direct labor hours = new units *hours per unit
= 158000*1.2
= 189600 DLH
Overhead Budget Johnston Company cleans and applies powder coat paint to metal items on a job-order...
Lane Company manufactures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $3.40 per direct labor hour and the budgeted fixed manufacturing overhead is $999.000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $6.50 per pound. The standard direct labor-hours per unit is 15 hours and the standard labor rate is $12.70 per hour. The company planned to operate at...
Job-Order Costing U-Design-It Furniture Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $144,000 for the year and the estimated direct labor hours were 18,000 hours. In March, Job #175 was completed. Direct materials totaled $7,000. Total labor costs were $6,000 at $20 per hour. At the end of the year, it was determined that the company worked 17,000 direct labor hours...
Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours Total fixed manufacturing overhead coat Variable manufacturing overhead per direct labor-hour 50,000 $285,000 $ 3.80 Recently, Job P513 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost 10 20 $ 710 $500 The...
Montgomery Company has developed the following flexible budget formulas for its four overhead items: Variable rate per Overhead item Fixed Cost direct labor hour Maintenance $10,000 $ 3.00 Power $ 1,500 $ 0.30 Indirect labor cost $12.00 Equipment lease $ 7,000 Total $18,500 $15.30 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs: Overhead item Actual costs Maintenance...
Larry Miller, controller for Kipling Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of frozen desserts: Icey and Tasty. The two desserts use common raw materials in different proportions. The company expects to produce 200,000 gallons of each product during the coming year. Icey requires 0.25 direct labor hour per gallon and Tasty requires 0.30. Larry has developed the following fixed and variable costs for each of the four overhead items:...
Montgomery Company has developed the following flexible budget formulas for its four overhead items: Fixed Cost $10,000 $ 1,500 Overhead item Maintenance Power Indirect labor cost Equipment lease Total Variable rate per direct labor hour $ 3.00 $ 0.30 $12.00 $_7,000 $18,500 $15.30 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs: Overhead item Maintenance Power Indirect labor cost Equipment lease Total costs Actual costs...
Montgomery Company has developed the following flexible budget formulas for its four overhead items: Variable rate per Overhead item Fixed cost direct labor hour Maintenance $10,000 $ 3.00 Power $ 1,500 $ 0.30 Indirect labor cost $12.00 Equipment lease $ 7,000 Total $18,500 $15.30 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however, this year, 19,000 units were produced with the following actual costs: Overhead item Actual costs Maintenance $14,000 Power $ 2,200 Indirect labor cost...
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to dete each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $338,800 60,000 137,000 196,794 43,400 27,250 19,500 55,000 26, 200 $903,944 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor...
Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.30; and maintenance $0.70. Fixed overhead costs per quarter: supervisory salaries $36,580, depreciation $17,620; and maintenance $13,700. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal...
Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,100, 12, 100, 14,200, 16,700. Direct labor: Time is 1.5 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.80; indirect labor $1.20; and maintenance $0.60. Fixed overhead costs per quarter: supervisory salaries $38,890; depreciation $19,570; and maintenance $13,090. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2...