ACCT 2101 Chapter : ACCT Additional MO Problems

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azuremammoth471

15 Mar 2019

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The following information pertains to specialty fittings inc. for. 80,000 hours @ . 50 per hour: compute the firm"s predetermined overhead rate, which is based on direct labor hours, calculate the over or under applied overhead for 2002, prepare the journal entry necessary to close out the. Assume that the amount of the over or under applied overhead is immaterial. The following selected information was extracted from the cost records of breitman corporation. Breitman calculates its predetermined overhead rate based on direct labor hours. Required: calculate breitman"s predetermined overhead rate, what is the amount of overhead applied to production by. Breitman this period and determine whether overhead was over or under applied: make the journal entry to close out the over or under applied overhead as determined above. Foster estimate that its overhead rate for 2004 will be . 00 and the activity base for 2004 will be 300,000 units.

Related Questions

Gene Simmons Company uses normal costing in each of its threemanufacturing departments. Manufacturing overhead is applied toproduction on the basis of direct labor cost in Department A,machine hours in Department B, and direct labor hours in DepartmentC. In establishing the predetermined overhead rates for the currentyear, the following budgeted data was available:

A B C

Manufacturing Overhead $900,000 $840,000 $760,000

Direct Labor Cost $600,000 $100,000 $600,000

Direct Labor Hours 50,000 40,000 40,000

Machine Hours 100,000 120,000 125,000

The following actual information is available for January of thecurrent year for each department:

Direct Materials Used $92,000 $86,000 $64,000

Direct Labor Cost $48,000 $35,000 $50,400

Manufacturing Overhead $76,000 $75,000 $72,100

Direct Labor Hours Used 4,000 3,500 4,200

Machine Hours Used 8,000 10,500 12,600

REQUIRED:

A. What two disadvantages are associated with actual costing?How does normal costing "solve" these problems?

B. Compute the pre-determined overhead rate for the current yearfor each department.

C. Compute the manufacturing overhead applied in January in eachdepartment.

D. Compute under- or over-applied overhead at the end of Januaryin each department--be sure to label the amount as under- orover-applied.

E. How will the balance of the Factory Overhead account of eachdepartment be reported on the financial statements at the end of(1) January and (2) the year?

Trex by Rex produces back packs and fanny packs for the outdoorsenthusiast. Production costs include direct materials, directlabor, and manufacturing overhead - both fixed and variable. Thefollowing costs were budgeted for the year:

Fixed manufacturing overhead	$187,200
Variable manufacturing overhead	$1.10/direct labor hour
Fixed selling and administrative	$375,000

The backpacks are expected to require 2.5 direct labor hours andplanned production is 12,000 units. The fanny packs are expected torequire 1.8 direct labor hours and planned production is 18,000units.

The actual direct labor hours required in production for theyear were as follows:

Product

Direct Labor Hours Used

Back Packs	34,060 DL hours
Fanny Packs	16,250 DL hours

Overhead is applied to production using direct labor hours andthe actual manufacturing cost for the year was $270,500.

1. Calculate the manufacturing overhead rate used toapply overhead to production of both the back packs and the fannypacks.

2. What is the resulting over-or-under-absorb edoverhead for the year?

3. What does the over-or-under-absorbed overheadrepresent?

4. How will the over-or-under-absorbed overhead behandled iin the determination of the finals costs ofproducts?

THANK YOU!

beigebutterfly42

The standard cost card for the single product manufactured by Cutter, Inc., is given below:

Inputs	(1) Standard Quantity or Hours	(2) Standard Price or Rate			Standard Cost (1) Ã (2)
Direct materials	4.2 yards	$	5.00	per yard	$	21.00
Direct labor	0.8 hours	$	15.00	per hour		12.00
Variable overhead	0.8 hours	$	1.50	per hour		1.20
Fixed overhead	0.8 hours	$	5.00	per hour		4.00
Total standard cost per unit					$	38.20

Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 8,760 hours and manufactured 10,700 units of product. Selected data relating to the companyâs fixed manufacturing overhead cost for the year are shown below:

Actual Fixed Overhead		Budgeted Fixed Overhead		Fixed Overhead Applied to Work in Process

$42,000		?		? hours Ã $? per hour = $?
	Budget variance, $?		Volume variance, $1,800 F

Required:

1. What were the standard hours allowed for the yearâs production?

2. What was the amount of budgeted fixed overhead cost for the year?

3. What was the fixed overhead budget variance for the year? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

4. What denominator activity level did the company use in setting the predetermined overhead rate for the year?

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ACCT 2101 Chapter : ACCT Additional MO Problems

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