A company works on three jobs and incurs the following: Direct materials - $50,000 and Direct...
A company works on three jobs and incurs the following: Direct materials - $50,000 and Direct labor - $100,000. The company uses a predetermined overhead rate of 60% of direct labor costs. How much overhead will be allocated to the three jobs?
Homework Answers
Solution :
The formula for calculating the amount of overhead to be allocated based on a predetermined overhead rate is
= Base cost * predetermined overhead rate
As per the information given in the question we have
Base cost = Direct Labor costs = $ 100,000 ; Predetermined overhead rate = 60 % = 0.60
Applying the above information in the above formula, we have the amount of overhead to be allocated to the three jobs
= $ 100,000 * 60 %
= $ 60,000
Thus the amount of overhead that will be allocated to the three jobs = $ 60,000
Add Answer to:
A company works on three jobs and incurs the following: Direct materials - $50,000 and Direct...
1.Consider a single job at Company B: Direct Materials costs were : 7,882 Direct labor was...
1.Consider a single job at Company B: Direct Materials costs were : 7,882 Direct labor was 64 hours at a rate of $16/HR MOH is allocated to jobs based on labor hours Budgeted MOH cost is 23,428 Budgeted dl labor hours is 4,622 actual MOH was 28,730 actual direct labor hours was 5,422 If actual costing is used, what is the actual overhead rate? 2. Consider a single job at Company B: Direct Materials costs were : 6,845 Direct labor...
Harmony Inc. uses a job-costing system with two direct cost categories (direct materials and direct manufacturing...
Harmony Inc. uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Harmony allocates manufacturing overhead costs using direct material costs. Harmony provides the following information: Overhead is allocated at $3/direct material dollar Question: How much overhead is allocated to jobs during 20X1? Budget for 20x1 Actual Results for 20X1 Direct Materials Cost $1,500,000 $1,900,000 Direct Ming Labor Cost $1,500,000 $1,450,000 Ming Overhead Cost $4,500,000 $3,355,000 Direct Ming Labor...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date Explanation Debit Credit Balance Dec. 31 Direct materials cost 1,700,000 1,700,000 31 Direct labor cost 250,000 1,950,000 31 Overhead applied 782,000 2,732,000 31 To finished goods 2,653,000 79,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory...
During the current month, a company that uses job order costing purchases $50,000 in raw materials...
During the current month, a company that uses job order costing purchases $50,000 in raw materials for cash. It then uses $12,000 of raw materials indirectly as factory supplies and uses $32,000 of raw materials as direct materials. Prepare journal entries to record these three transactions. View transaction list View journal entry worksheet General Journal Credit No 1 Transaction 1 Debit 50,000 / Raw materials inventory Cash 50,000 12,000 Factory overhead Raw materials inventory 12,000 3 32,000 Work in process...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date Explanation Debit Credit Balance Dec. 31 Direct materials cost 1,200,000 1,200,000 31 Direct labor cost 220,000 1,420,000 31 Overhead applied 564,000 1,984,000 31 To finished goods 1,902,080 82,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process inventory account shows the following Date Credit Work in Process Inventory Explanation Debit Dec. 31 Direct materials cost 2, 103, 31 Direct labor cost 230. 31 Overhead applied 340, BD 31 To finished goods Balance 2,000,000 2,238,00 3,078, 91,090 2.979,00 1. Determine the predetermined overhead rate used based on direct materials cos). 2. Only one job remained in work in process...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Work in Process Inventory Date Explanation Debit Credit Dec. 31 Direct materials cost 1,400,000 31 Direct labor cost 260,000 31 Overhead applied 448,000 31 To finished goods 2,016,000 Balance 1,400,000 1,650,000 2,108,000 92,000 1. Determine the predetermined overhead rate used based on direct materials cost). 2. Only one job remained in work in process inventory at...
1. Assume that during the year the company works only 81,000 machine-hours and incurs the following...
1. Assume that during the year the company works only 81,000
machine-hours and incurs the following costs in the Manufacturing
Overhead and Work in Process accounts: Compute the amount of
overhead cost that would be applied to Work in Process for the year
and make the entry in your T-accounts.
2A. Compute the amount of underapplied or overapplied overhead
for the year and show the balance in your Manufacturing Overhead
T-account.
2B. Prepare a journal entry to close the company's...
In October, Pine Company reports 21,200 actual direct labor hours, and it incurs $233,000 of manufacturing...
In October, Pine Company reports 21,200 actual direct labor hours, and it incurs $233,000 of manufacturing overhead costs. Standard hours allowed for the work done is 23,300 hours. The predetermined overhead rate is $10.25 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $8.65 variable per direct labor hour and $50,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. overhead volume variance:
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...
Harwood Company uses a job-order costing system that applies
overhead cost to jobs on the basis of machine-hours. The company's
predetermined overhead rate of $2.70 per machine-hour was based on
a cost formula that estimates $243,000 of total manufacturing
overhead for an estimated activity level of 90,000
machine-hours.
Required:
1. Assume that during the year the company works only 85,000
machine-hours and incurs the following costs in the Manufacturing
Overhead and Work in Process accounts: Compute the amount of
overhead...
Harmony Inc. uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Harmony allocates manufacturing overhead costs using direct material costs. Harmony provides the following information: Overhead is allocated at $3/direct material dollar Question: How much overhead is allocated to jobs during 20X1? Budget for 20x1 Actual Results for 20X1 Direct Materials Cost $1,500,000 $1,900,000 Direct Ming Labor Cost $1,500,000 $1,450,000 Ming Overhead Cost $4,500,000 $3,355,000 Direct Ming Labor...
During the current month, a company that uses job order costing purchases $50,000 in raw materials for cash. It then uses $12,000 of raw materials indirectly as factory supplies and uses $32,000 of raw materials as direct materials. Prepare journal entries to record these three transactions. View transaction list View journal entry worksheet General Journal Credit No 1 Transaction 1 Debit 50,000 / Raw materials inventory Cash 50,000 12,000 Factory overhead Raw materials inventory 12,000 3 32,000 Work in process...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date Explanation Debit Credit Balance Dec. 31 Direct materials cost 1,200,000 1,200,000 31 Direct labor cost 220,000 1,420,000 31 Overhead applied 564,000 1,984,000 31 To finished goods 1,902,080 82,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process inventory account shows the following Date Credit Work in Process Inventory Explanation Debit Dec. 31 Direct materials cost 2, 103, 31 Direct labor cost 230. 31 Overhead applied 340, BD 31 To finished goods Balance 2,000,000 2,238,00 3,078, 91,090 2.979,00 1. Determine the predetermined overhead rate used based on direct materials cos). 2. Only one job remained in work in process...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Work in Process Inventory Date Explanation Debit Credit Dec. 31 Direct materials cost 1,400,000 31 Direct labor cost 260,000 31 Overhead applied 448,000 31 To finished goods 2,016,000 Balance 1,400,000 1,650,000 2,108,000 92,000 1. Determine the predetermined overhead rate used based on direct materials cost). 2. Only one job remained in work in process inventory at...
1. Assume that during the year the company works only 81,000
machine-hours and incurs the following costs in the Manufacturing
Overhead and Work in Process accounts: Compute the amount of
overhead cost that would be applied to Work in Process for the year
and make the entry in your T-accounts.
2A. Compute the amount of underapplied or overapplied overhead
for the year and show the balance in your Manufacturing Overhead
T-account.
2B. Prepare a journal entry to close the company's...
Harwood Company uses a job-order costing system that applies
overhead cost to jobs on the basis of machine-hours. The company's
predetermined overhead rate of $2.70 per machine-hour was based on
a cost formula that estimates $243,000 of total manufacturing
overhead for an estimated activity level of 90,000
machine-hours.
Required:
1. Assume that during the year the company works only 85,000
machine-hours and incurs the following costs in the Manufacturing
Overhead and Work in Process accounts: Compute the amount of
overhead...
Most questions answered within 3 hours.
-
DP Gumby produces sleeveless sweaters. He can separate the
demand function into a domestic component: QD=...
asked 1 minute ago -
6) Weak acids are not very soluble in water. A). TRUE B).
FALSE
The answer says...
asked 7 minutes ago -
Lab #2 Address Book Unsorted List (C++)
Using classes, design an online address book to keep...
asked 17 minutes ago -
Tucson Machinery, Inc., manufactures numerically controlled
machines, which sell for an average price of $0.5 million...
asked 32 minutes ago -
Review the referenced paper by Melse (2008). Describe the
research question being addressed. Discuss the methods...
asked 37 minutes ago -
Please do all parts. I don't want to hear your as per guidelines
stuff. Do if...
asked 47 minutes ago -
1. Why is Hardy-Weinberg Theorum important? How can we
test whether a population is in H-W...
asked 47 minutes ago -
A sample of 3 is selected from 9 cards. How many permutation is
possible? Show Work.
asked 1 hour ago -
Identify a commercial data mining software product (e.g., SAS)
and an open-source data mining product (e.g.,...
asked 1 hour ago -
Following are the capital account balances for the William,
Jennings, and Bryan partnership:
William (40% of...
asked 54 minutes ago -
An investment project provides cash inflows of $770 per year for
11 years.
a. What is...
asked 1 hour ago -
About the lecture of human resource management, give me the
process and schedule of how the...
asked 1 hour ago