HW Ch 15 solutions

HW Ch 15 solutions - Exercise 15-7 (25 minutes) 1....

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Exercise 15-7 (25 minutes) 1. Predetermined overhead rate Estimated overhead costs. .............................................. $1,700,000 Estimated direct labor costs. .......................................... $ 500,000 Rate ($1,700,000 / $500,000). ........................................... 340% Overhead Incurred. ....... 1,710,000 Applied*. ............ 1,666,000 Underapplied 44,000 *Overhead applied to jobs = 340% x $490,000 = $1,666,000 4. Dec. 31 Cost of Goods Sold. .......................................... 44,000 Factory Overhead. ....................................... 44,000 To allocate underapplied overhead.
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Exercise 15-8 (35 minutes) 1. Predetermined overhead rate Estimated overhead costs. ............................................... $1,500,000 Estimated direct labor costs. ............................................ $1,250,000 Rate ($1,500,000 / $1,250,000). .......................................... 120% 2. & 3. Factory Overhead Incurred. ........... 1,660,000 Applied*. ........ 1,644,000 Underapplied. .. 16,000 *Overhead applied to jobs = 120% x $1,370,000 = $1,644,000 4. Dec. 31 Cost of Goods Sold. .................................. 16,000 Factory Overhead. ............................... 16,000 To allocate underapplied overhead.
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Exercise 15-9 (30 minutes) 1. Overhead rate = Total overhead costs applied / Total direct labor costs = $1,200,000 / $2,000,000 = 60% 2. Total cost of goods in
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This note was uploaded on 02/01/2011 for the course ACCT 203 taught by Professor Hylton during the Summer '08 term at George Mason.

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HW Ch 15 solutions - Exercise 15-7 (25 minutes) 1....

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