SolutionsFeb0405

SolutionsFeb0405 - Exercise 3-14 (30 minutes) 1. The...

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Unformatted text preview: Exercise 3-14 (30 minutes) 1. The overhead applied to Ms. Miyamis account would be computed as follows: 2005 2006 Estimated overhead cost (a)............................... $144,000 $144,000 Estimated professional staff hours (b)................ 2,400 2,250 Predetermined overhead rate (a) (b)............... $60 $64 Professional staff hours charged to Ms. Miyamis account....................................... 5 5 Overhead applied to Ms. Miyamis account........ $300 $320 2. If the actual overhead cost and the actual professional hours charged turn out to be exactly as estimated there would be no underapplied or overapplied overhead. 2005 2006 Predetermined overhead rate (see above)......... $60 $64 Actual professional staff hours charged to clients accounts (by assumption).................... 2,400 2,250 Overhead applied................................................ $144,000 $144,000 Actual overhead cost incurred (by assumption).. 144,000 144,000 Under- or overapplied overhead......................... $ $ 3. If the predetermined overhead rate is based on the professional staff hours available, the computations would be: Estimated overhead cost (a)................................. $144,000 $144,000 Professional staff hours available (b)................... 3,000 3,000 Predetermined overhead rate (a) (b)................. $48 $48 Professional staff hours charged to Ms. Miyamis account.............................................................. 5 5 Overhead applied to Ms. Miyamis account.......... $240 $240 Problem 3-14 (continued) 4. If the actual overhead cost and the actual professional staff hours charged to clients accounts turn out to be exactly as estimated overhead would be underapplied as shown below....
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SolutionsFeb0405 - Exercise 3-14 (30 minutes) 1. The...

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