UNit 3_Assignment _tralongo

# UNit 3_Assignment - Exercise 13 on page 94-95 13 LO.1(Predetermined OH rate For 2010 Omaha Mechanical has a monthly overhead cost formula of

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Exercise 13 on page 94-95 one unit of the company’s product requires 1.5 direct labor hours. a. Determine the total overhead to be applied per unit of product in 2010. b. Prepare journal entries to record the application of overhead to Work in Process Inventory and the incurrence of \$128,550 of actual overhead in January 2010, when 6,390 direct labor hours were worked. c. Given the actual direct labor hours in part (b), how many units would you have expected to be pr Montly OH \$42,900 Yearly OH \$514,800 Direct labor hour 6 Yearly DLH \$468,000 \$982,800 A. Total OH to be applied in 2010 Predetermined OH rate \$12.60 per DLH OH per unit \$18.90 B. Manufacturing overhead 128,550 Various accounts 128,550 Work in Process Inventory 80514 Manufacturing overhead 80514 C. 6390 DLH 4260 should have been produced 13. LO.1 (Predetermined OH rate) For 2010, Omaha Mechanical has a monthly overhead cost formula of \$42,900 + \$6 per direct labor hour. Th e fi rm’s 2010 expected annual capacity is 7

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roduced in January? d 8,000 direct labor hours, to be incurred evenly each month. Making
Exercise 14 on page 95 using a combined rate for fi xed and variable overhead. Th e rate is 250 percent of direct labor cost. During the fi rst three months of the current year, actual costs incurred were as

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## This note was uploaded on 07/16/2011 for the course COST ACCOU 410 taught by Professor David during the Fall '10 term at Kaplan University.

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UNit 3_Assignment - Exercise 13 on page 94-95 13 LO.1(Predetermined OH rate For 2010 Omaha Mechanical has a monthly overhead cost formula of

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