{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter_3 - Exercise33(10minutes (DLHs = \$586,000 40,000...

This preview shows pages 1–3. Sign up to view the full content.

Exercise 3-3  (10 minutes) The predetermined overhead rate is computed as follows: Estimated total manufacturing overhead ....... \$586,000 ÷  Estimated total direct labor hours (DLHs)...       40,000     DLHs = Predetermined overhead rate .....................       \$14.65     per DLH Exercise 3-11  (10 minutes) 1. Actual direct labor-hours ................................. 8,250 ×  Predetermined overhead rate ......................       \$21.40     = Manufacturing overhead applied ................. \$176,550 Deduct: Manufacturing overhead incurred .....   172,500     Manufacturing overhead overapplied ............. \$          4,050     2. Because manufacturing overhead is overapplied, the cost of goods sold  would decrease by \$4,050 and the gross margin would increase by  \$4,050.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Problem 3-25  (60 minutes) 1. a.  Estimated total manufacturing overhead cost Predetermined = overhead rate Estimated total amount of the allocation base \$1,440,000 = = 160% of direct labor cost \$900,000 direct labor cost b. \$21,200  ×  160% = \$33,920.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern