Assume that the Davis Company expects to incur total manufacturing overhead of $600,000 in 2014. Davis...
Assume that the Davis Company expects to incur total manufacturing overhead of $600,000 in 2014. Davis allocated overhead to products based on direct labor hours. The plant is scheduled to operate 75,000 direct labor hours during 2014.
o What is the company’s predetermined overhead rate?
o Assume it took Davis 3.5 hours to complete a job, how much overhead should be applied to that job?
Homework Answers
| Answer = 1) | ||
| CALCULATION OF OVERHEAD RECOVERY RATE ON BASIS OF DIRECT LABOR HOURS | ||
| Overhead Rate per Labor hours = Total Overhead / Total direct labor hours | ||
| Overhead Rate per Labor hours = $ 600,000 / 75,000 Direct Labor hours | ||
| Overhead Rate per Labor hours = $ 8 Per Labor hours | ||
| Answer = $ 8.00 | ||
| Answer = 2) | ||
| CALCULATION OF OVERHEAD APPLIED FOR 3.5 HOURS JOB | ||
| Total Number of Hours required for job = | 3.50 | Hours |
| X Overhead rate per hours | $ 8.00 | |
| Ttoal Overhead applied = | $ 28.0 | |
| Answer = $ 28.00 | ||
Add Answer to:
Assume that the Davis Company expects to incur total
manufacturing overhead of $600,000 in 2014. Davis...
Jefferson Company expects to incur $460,000 in manufacturing overhead costs during 2014. Other budget information is...
Jefferson Company expects to incur $460,000 in manufacturing overhead costs during 2014. Other budget information is below Dept A Dept B Dept C Direct Labor hours 15,000 5,000 20,000 Machine Hours 8,000 10,000 12,000 1. Use direct labor hours as a cost drive to compute the allocation rate: Determine the amount budgeted overhead cost for each department 2. Use Machine hours as a cost driver to compute the allocation . Determine the amount budgeted overhead cost for each department 3....
Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Brenner Company expects to incur $3,000,000...
Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Brenner Company expects to incur $3,000,000 in manufacturing overhead costs this year. During the year, it expects to use 50,000 direct labor hours at a cost of $600,000 and 80,000 machine hours. Required: Prepare a predetermined overhead rate based on direct labor hours, direct labor cost, and machine hours. Why might Brenner Company prefer to use machine hours to allocate manufacturing overhead? Using each of the predetermined overhead rates calculated...
Vaughn Company manufactures a line of lightweight running shoes. CEO Mark Vaughn estimated that the company...
Vaughn Company manufactures a line of lightweight running shoes. CEO Mark Vaughn estimated that the company would incur $3,101,560 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 212,000 direct labor hours and 616,612 machine hours. Assume that Vaughn Company uses direct labor hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate Assume that job 4375 required 400 direct labor hours to complete. How much manufacturing overhead...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $1,352,000 13,000 104,000 Assembly $ 169,000 104,000 8,000 Total $1,521,000 117,000 112,000 Job A Direct labor hours Machine hours Machining Assembly Total 1 12 13...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $22.500.000 30,000 750,000 Assembly $ 900.000 750,000 25,000 Total $23.400.000 780,000 775,000 JobA Direct labor hours Machine hours Machining Assembly 10 Total 15 Machining Assembly...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $9,522,000 23,000 414,000 Assembly $529,000 414,000 18,000 Total $10,051,000 437,000 432,000 Machining Assembly Total Job A Direct labor hours Machine hours 11 2 13 Machining...
The president of Sheffield’s Shoes forecasts the company will incur $1,560,000 of manufacturing overhead in the...
The president of Sheffield’s Shoes forecasts the company will incur $1,560,000 of manufacturing overhead in the coming year. The company also expects the following results for its operations in the coming year: Direct labor hours 192,000 Direct labor cost $ 2,400,000 Machine hours 60,000 Compute overhead allocation rates based on the following bases: Direct labor hours Direct labor dollars Machine hours If the company decides to use direct labor hours as its basis for overhead allocation, how much overhead would...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $5,054,000 19,000 266,000 Assembly $361,000 266,000 14,000 Total $5,415,000 285,000 280,000 Job A Direct labor hours Machine hours Machining Assembly Total 5 10 15 13...
Exercise 21-19 Computation of total overhead rate and total overhead variance LO P3 World Company expects...
Exercise 21-19 Computation of total
overhead rate and total overhead variance LO P3 World Company
expects to operate at 80% of its productive capacity of 50,000
units per month. At this planned level, the company expects to use
25,000 standard hours of direct labor. Overhead is allocated to
products using a predetermined standard rate of 0.625 direct labor
hours per unit. At the 80% capacity level, the total budgeted cost
includes $50,000 fixed overhead cost and $275,000 variable overhead
cost....
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Machining $1,764,000 14.000 126,000 Assembly $ 196,000 126,000 9,000 Total $1,960,000 140,000 135,000 JobA Direct labor-hours Machine-hours Machining Assembly 5 10 11 2 Total 15 13 Job B...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $1,352,000 13,000 104,000 Assembly $ 169,000 104,000 8,000 Total $1,521,000 117,000 112,000 Job A Direct labor hours Machine hours Machining Assembly Total 1 12 13...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $22.500.000 30,000 750,000 Assembly $ 900.000 750,000 25,000 Total $23.400.000 780,000 775,000 JobA Direct labor hours Machine hours Machining Assembly 10 Total 15 Machining Assembly...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $9,522,000 23,000 414,000 Assembly $529,000 414,000 18,000 Total $10,051,000 437,000 432,000 Machining Assembly Total Job A Direct labor hours Machine hours 11 2 13 Machining...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $5,054,000 19,000 266,000 Assembly $361,000 266,000 14,000 Total $5,415,000 285,000 280,000 Job A Direct labor hours Machine hours Machining Assembly Total 5 10 15 13...
Exercise 21-19 Computation of total
overhead rate and total overhead variance LO P3 World Company
expects to operate at 80% of its productive capacity of 50,000
units per month. At this planned level, the company expects to use
25,000 standard hours of direct labor. Overhead is allocated to
products using a predetermined standard rate of 0.625 direct labor
hours per unit. At the 80% capacity level, the total budgeted cost
includes $50,000 fixed overhead cost and $275,000 variable overhead
cost....
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Machining $1,764,000 14.000 126,000 Assembly $ 196,000 126,000 9,000 Total $1,960,000 140,000 135,000 JobA Direct labor-hours Machine-hours Machining Assembly 5 10 11 2 Total 15 13 Job B...
Most questions answered within 3 hours.
-
A gene has four alleles, A1, A2,
A3, and A4. The alleles occur in a population...
asked 1 hour ago -
Solve the problem. Please show steps a) Common Equity(C/E) is
$400,000(No Debt), Sales are $600,000, NI...
asked 44 minutes ago -
A patient is given 0.055 mg of technetium-99 m, a radioactive
isotope with a half-life of...
asked 55 minutes ago -
Discuss when you think a broad banding pay structure might work
best and why. If you...
asked 1 hour ago -
A child's mother has type A blood. Their father has type B
blood. The child has...
asked 2 hours ago -
Last year's dividend (D0) was$3.20per share. The constant growth
in dividends=6.25%. Required return=12%.
Requirement 1:
What...
asked 2 hours ago -
What is the chemical equation for the reaction that occurs
between hydrochloric acid & potassium carbonate?...
asked 2 hours ago -
Today is your 25th birthday, and you want to save $1.9 Million
by your birthday at...
asked 3 hours ago -
James Bakery sells cupcakes to William's Restaurant. The credit
terms are 1%/5/net 15. The selling price...
asked 5 hours ago -
The cost of ink cartridges for inkjet printers can be
substantial over the life of a...
asked 5 hours ago -
what do you think would be your reservations in
relaying on the linear regression model for...
asked 5 hours ago -
Which of the following best describes the expected value of a
discrete random variable?
Select one:...
asked 5 hours ago