Teresa summerlin manufactures hand crafted pottery. Overhead is applied to products based on direct labor hours....
Teresa summerlin manufactures hand crafted pottery. Overhead is applied to products based on direct labor hours. At the beginning of the current year, Teresa estimated total overhead costs would be $30,000 and estimated direct labor hours would be 20,000. Actual overhead costs for the year totaled $36,000 for 18,000 actual direct labor hours.
By how much was overhead underapplied for the year?
A. $2,600 underapplied
B. $9,000 underapplied
C. $3,000 underapplied
D. $6,000 underapplied
Homework Answers
Applied overhead = 30000*18000/20000 = $27000
Over (under) applied overhead = Applied overhead - Actual overhead
= 27000-36000
= $9000 under applied
Option B. is correct answer.
Add Answer to:
Teresa summerlin manufactures hand crafted pottery. Overhead is applied to products based on direct labor hours....
QUESTION 9 A manufacturing company applies factory overhead based on direct labor hours. At the beginning...
QUESTION 9 A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a. $6,000 underapplied b.$54,800 overapplied c. $6,000 overapplied d. $54,800 underapplied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $482,910 and direct labor hours would be 48,291. Actual factory overhead costs incurred were $520,224, and actual direct labor hours were 54,190. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a. $58,990 underapplied b. $21,676 overapplied c. $541,900 overapplied d. $21,676 underapplied A manufacturing company applies factory...
Martin Company applies manufacturing overhead based on direct machine hours. Martin estimates manufacturing overhead and labor...
Martin Company applies manufacturing overhead based on direct machine hours. Martin estimates manufacturing overhead and labor for the year follows: Estimated manufacturing overhead $120,000 Direct labor hours estimated 5,000 Estimated direct labor costs $50,000 Estimated machine hours 6,000 Assuming the actual manufacturing overhead cost and the actual activities for Job 201 is as follows: Actual manufacturing overhead $ 12,000 Direct labor hours actual incurred 300 Actual direct labor costs totaled $ 9,800 Actual machine hours totaled 400 Instructions (a) Compute...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $367,308 and direct labor hours would be 40,812. Actual factory overhead costs incurred were $439,214, and actual direct labor hours were 50,835. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$18,301 underapplied b.$457,515 overapplied c.$90,207 underapplied d.$18,301 overapplied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $426,870 and direct labor hours would be 47,430. Actual factory overhead costs incurred were $462,974, and actual direct labor hours were 53,585. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$55,395 underapplied b.$482,265 overapplied c.$19,291 underapplied d.$19,291 overapplied
If estimated annual factory overhead is $546,000; overhead is applied using direct labor hours; estimated annual...
If estimated annual factory overhead is $546,000; overhead is applied using direct labor hours; estimated annual direct labor hours are 210,000; actual March factory overhead is $48,100; and actual March direct labor hours are 18,000; then overhead is: Multiple Choice $300 underapplied $300 overapplied $1,300 underapplied 900 overapplied $900 underapplied
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates...
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $260,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $285,000 and 23,000 hours, respectively. Required: 1. Compute over- or underapplied overhead. 2a. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the...
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...
Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl...
Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000. During February, Victryl has 5,000 direct labor hours and 10,000 machine hours. If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied? a. $1200 underapplied Ob. $1,000 underapplied Oc. $600 overapplied Od, $800 overapplied e. $1,700 overapplied Ned...
Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on...
Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were! Actual manufacturing overhead cost incurred Actual direct labor-hours worked $38,000 18,500 The overapplied or underapplied manufacturing for the year was: Multiple Choice $3,000 underapplied $1,000 underapplied $1,000 overapplied $3.000 overapplied
QUESTION 9 A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a. $6,000 underapplied b.$54,800 overapplied c. $6,000 overapplied d. $54,800 underapplied
If estimated annual factory overhead is $546,000; overhead is applied using direct labor hours; estimated annual direct labor hours are 210,000; actual March factory overhead is $48,100; and actual March direct labor hours are 18,000; then overhead is: Multiple Choice $300 underapplied $300 overapplied $1,300 underapplied 900 overapplied $900 underapplied
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...
Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000. During February, Victryl has 5,000 direct labor hours and 10,000 machine hours. If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied? a. $1200 underapplied Ob. $1,000 underapplied Oc. $600 overapplied Od, $800 overapplied e. $1,700 overapplied Ned...
Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were! Actual manufacturing overhead cost incurred Actual direct labor-hours worked $38,000 18,500 The overapplied or underapplied manufacturing for the year was: Multiple Choice $3,000 underapplied $1,000 underapplied $1,000 overapplied $3.000 overapplied
Most questions answered within 3 hours.
-
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 4 minutes ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 6 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 6 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 20 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 25 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 27 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 35 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 37 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 49 minutes ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago -
Consider the probability that fewer than 34 out of 116 CDs will
be defective. Assume the...
asked 1 hour ago