Solution 1a:
Estimated direct labor Cost = 40*2000*$30 = $2,400,000
Estimated Overhead costs / Estimated direct labor Cost = Predetermined overhead rate
$1560000/ 2400000 = 65%
Solution 1b:
Computation of Overhead cost Applied to Jobs | ||
Job no. | Direct Labor | Overhead Cost applied (65%) |
201 | $6,17,000 | $4,01,050 |
202 | $5,76,000 | $3,74,400 |
203 | $3,11,000 | $2,02,150 |
204 | $7,29,000 | $4,73,850 |
205 | $3,27,000 | $2,12,550 |
206 | $30,000 | $19,500 |
Total | $25,90,000 | $16,83,500 |
SOlution 1c:
Factory Overhead | |||
Actual Overhead | $17,23,000 | Applied | $16,83,500 |
Balance (Under-applied) | $39,500 | ||
Solution 2:
Journal Entries | ||
Particulars | Debit | Credit |
Cost of Goods sold Dr | $39,500 | |
To Factory Overhead | $39,500 | |
(To allocate under applied overhead) |
mework a Saved Help Save & Exit Subm Check my work Problem 15-4A Overhead allocation and...
Check Problem 15-4A Overhead allocation and adjustment using a predetermined overhead rate LO P3, P4 In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 2,000 hours each at an average wage rate of $30 per hour. The manager also estimated the following manufacturing overhead costs for 2017 0 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used...
In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 2,000 hours each at an average wage rate of $30 per hour. The manager also estimated the following manufacturing overhead costs for 2017. Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Pactory supplies used Miscellaneous production costs Total estimated overhead coats $ 332,200 243,000 103,000 101,000 81,000 496,000 73,000 81,800...
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At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 40 persons working an average of 2,000 hours each at an average wage rate of $40 per hour. The manager also estimated the following manufacturing overhead costs for the year. Indirect labor $ 324,200 Factory supervision 355,000 Rent on factory building 145,000 Factory utilities 93,000 Factory insurance expired 73,000 Depreciation—Factory equipment 750,000 Repairs expense—Factory equipment 65,000 Factory supplies used 73,800 Miscellaneous production costs 41,000 Total...
Acct 202... need help answering the requirements (last picture) 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for the year. Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs $ 319,200 240,000 140,000 88,000 68,000 480,000 60,000 68,800 36,000 $1,500,000 At year-end, records show the company incurred $1,520,000...
In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 3,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs $ 336,200 276,000 157,000 105,000 85,000 625,000 77,000 85,800...
At the beginning of the year, Learer Company's manager estimated total direct labor cost assuming 35 persons working an average of 3,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for the year. Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs $ 335,200 165,000 156,000 104,000 84,000 413,000...
1 In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs Total estimated overhead costs $ 333,200 128,000 154,000 102,000 82,000 494,000 74,000...
In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 40 persons working an average of 3,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor $ 316, 200 Factory supervision 188,800 Rent on factory building 147,000 Factory utilities 95,000 Factory insurance expired 75, eee Depreciation-Factory equipment 521,000 Repairs expense-Factory equipment 67,000 Factory supplies used 75,800 Miscellaneous production costs 43,000 Total...