If job 461 contained 100 units the unit cost on the

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Financial and Managerial Accounting Using Excel for Success
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Chapter 23 / Exercise PR 23–1A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
87. If Job #461 contained 100 units, the unit cost on the completed job cost sheet would be: A) $61.75 B) $62.50 C) $63.10 D) $55.00 Solution: Estimated total manufacturing overhead ...................... $50,000 ÷ Estimated total direct labor-hours (DLHs) ................ 20,000 DLHs = Predetermined overhead rate ..................................... $2.50 per DLH Job #461 Costs: Materials ............................................ $4,000 Labor .................................................. 1,500 Manufacturing overhead (300 DLHs* × $2.50 per DLH) ....... 750 Total cost ............................................ $6,250 ÷100 units $62.50 per unit cost *$1,500 total labor cost ÷ $5 per hour = 300 DLHs
88. The manufacturing overhead for the year was:
Use the following to answer questions 89-91: Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead ............ $157,050 Estimated machine-hours ........................... 4,500 Actual manufacturing overhead ................. $156,000 Actual machine-hours ................................ 4,580 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
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Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 23 / Exercise PR 23–1A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
89. The predetermined overhead rate is closest to:
90. The applied manufacturing overhead for the year is closest to:
91. The overhead for the year was: A) $2,792 underapplied B) $3,842 overapplied C) $2,792 overapplied D) $3,842 underapplied Solution: Estimated total manufacturing overhead ...................... $157,050 ÷ Estimated total machine-hours (MHs) ....................... 4,500 MHs = Predetermined overhead rate ..................................... $34.90 per MH Applied manufacturing overhead = Predetermined overhead rate × Actual machine-hours Applied manufacturing overhead = $34.90 × 4,580 = $159,842 Actual manufacturing overhead ............... $156,000 Applied manufacturing overhead ............ 159,842
Overapplied manufacturing overhead ..... ($ 3,842 ) Use the following to answer questions 92-94: Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600. 92. The predetermined overhead rate for the year was closest to:

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