Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system....
Predetermined Overhead Rate, Applied Overhead, Unit Cost
Ripley, Inc., costs products using a normal costing system. The following data are available for last year:
Overhead is applied on the basis of direct labor hours.
Required:
1. What was the predetermined overhead
rate?
$________ per direct labor hour
2. What was the applied overhead for last
year?
$_________
3. Was overhead over- or underapplied, and by how
much?
- Select your answer -Overapplied overheadUnderapplied overheadItem
3 = $________
4. What was the total cost per unit produced (carry your
answer to four significant digits)?
$_________ per unit
Homework Answers
1./
PREDETERMINED OVERHEAD RATE = BUDGETED OVERHEAD / BUDGETED DIRECT LABOUR HOUR
= $285600 / 10200
= $28
2./
APPLIED OVERHEAD = AUTUAL DIRECT LABOUR HOUR * PREDETERMINED OVERHEAD RATE
= 9930 * $28
= $278040
3./
THE OVERHEAD IS UNDERAPPLIED BY AMOUNT OF $6960 ($278040 - $285000)
4./
COST PER UNIT PRODUCED = PRIME COST / NUMBER OF UNITS
= $1050000 / 150000
= $7
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Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system....
Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system....
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04.39
Calculating the Predetermined Overhead Rate, Applying Overhead to Production. Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Underand Overapplied Overhead At the beginning of the year, Han Company estimated the following: Overhead $240,000 Direct labor hours 80,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 8,250. By the end of the year, Han showed the following actual amounts:...
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Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead At the beginning of the year, Han Company estimated the following: Overhead $280,000 Direct labor hours 70,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 8,550. By the end of the year, Han showed the following actual amounts:...
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