Question

Arbor, Inc. had overhead of $350,000 during the year when $300,000 in labor costs were incurred. Estimates at the start of th
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: 160.00%

Working:

Predetermined overhead rate (Labor cost as base) = Estimated overhead cost/Estimated labor cost

                                                

   =$464,000/$290,000

    =160%

Add a comment
Know the answer?
Add Answer to:
Arbor, Inc. had overhead of $350,000 during the year when $300,000 in labor costs were incurred. Estimates at the s...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • During June, Buttrey Corporation incurred $84.000 of Grect labor costs and $24,000 of indirect labor costs....

    During June, Buttrey Corporation incurred $84.000 of Grect labor costs and $24,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a Multiple Choice debt to work in Process of 504.000 Cred to work in Process of SOB,000 o o debit to Work in Process of $100,000 o credit to Work in Process of 4000 Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's Inventory balances were as...

  • Amy Corporation, which applies manufacturing overhead on the basis of direct labor hours, has provided the...

    Amy Corporation, which applies manufacturing overhead on the basis of direct labor hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Estimated direct labor hours Actual manufacturing overhead Actual direct labor hours $80,080 1,100 $76,800 1,060 The estimates of the manufacturing overhead and of direct labor hours were made at the beginning of the year. The applied manufacturing overhead for the year is closest to Multiple Choke $75,089 0 $77,168 576.800 $76.450 Magnolia...

  • The following costs were incurred in May. Direct materials Direct labor Manufacturing overhead Selling expenses Administrative...

    The following costs were incurred in May. Direct materials Direct labor Manufacturing overhead Selling expenses Administrative expense $39,100 $30,400 $18,000 $14,500 $34,700 01:03:56 Prime costs during the month totaled: Multiple Choice 0 O $69.500 0 $48.400 0 $36.700 0 $27500

  • Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the following costs...

    Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the following costs during the year: direct materials costs, $650,000; direct labor costs, $3,000,000; and factory overhead costs applied, $1,800,000. 1. Determine the company's predetermined overhead rate for the year. 2. Assuming that the company's $71,000 ending Work in Process Inventory account for the year had $20,000 of direct labor costs, determine the inventory's direct materials costs.

  • Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for...

    Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $115,500 and $124,600, respectively. During the year, actual overhead was $107.000 and actual direct labor cost was $116,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount would include (Round predetermined overhead rate to nearest whole percentage.) Multiple Choice 0 A credit to Factory Overhead for $880. A credit to Cost of Goods Sold for...

  • The predetermined overhead allocation rate for Freestyle, Inc., is based on estimated direct labor costs of $400,00...

    The predetermined overhead allocation rate for Freestyle, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were: Direct materials. $250,000 400,000 55,000 125,000 50,000 Direct labor Indirect materials....... Indirect labor............................... Sales commissions............. ..... Factory depreciation................. ......... Property taxes, factory.. Factory utilities..... Advertising ...... Factory equipment rental 170,000 15,000 35,000 62,500 100,000 Calculate the predetermined overhead rate and calculate the overhead applied to production during the year (6 points). A. Predetermined...

  • A Company incurred direct materials costs of $85000 during the year. Manufacturing overhead applied was $80000...

    A Company incurred direct materials costs of $85000 during the year. Manufacturing overhead applied was $80000 and is applied based on direct labor costs. The predetermined overhead rate is 80%. How much are the Company’s total manufacturing costs for the year? X Your answer is incorrect. Swifty Company incurred direct materials costs of $85000 during the year. Manufacturing overhead applied was $80000 and is applied based on direct labour costs. The predetermined overhead rate is 80%. How much are Swifty...

  • Cortez Consulting, Inc., expects the following costs and expenses during the coming year: Direct labor (@$41/hr.)...

    Cortez Consulting, Inc., expects the following costs and expenses during the coming year: Direct labor (@$41/hr.) $486,000 Sales commissions 111,000 Overhead 432,000 a. Compute a predetermined overhead rate applied on the basis of direct labor hours. Round to two decimal places, if applicable. $ b. Prepare a general journal entry to apply overhead during an interim period when 4,500 direct labor hours were worked. General Journal Description Debit Credit c. What amount of overhead would be assigned to Job 466,...

  • k Company estimates that overhead costs for the next year will be $2,890,000 for indirect labor...

    k Company estimates that overhead costs for the next year will be $2,890,000 for indirect labor and $850,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 85,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 5 direct labor hours? Multiple Choice Ο $44.00 Ο $34.00 Ο $220.00 Ο $170.00 Ο None of the choices

  • 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT