Figure 4 6 the fast furious company produces two

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Financial and Managerial Accounting Using Excel for Success
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Chapter 17 / Exercise PR 17–4B
Financial and Managerial Accounting Using Excel for Success
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81. Figure 4-6The Fast & Furious Company produces two products: toy planes and toy race cars. They use departmental overhead rates for the two production departments: molding and finishing. Molding uses machine hours to assign overhead and Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced. Pleasefind the following data:MoldingFinishingTotalEstimated Overhead$250,000$100,000$350,000Actual Overhead$240,000$120,000$360,000Expected direct labor hoursplanes5,0005,00010,000race cars5,00035,00040,000Expected machine hoursplanes17,0003,00020,000race cars3,0007,00010,000Actual direct labor hoursplanes4,5005,30010,000race cars5,50034,50040,000Actual machine hoursplanes16,5003,50020,000race cars3,2006,80010,000Refer to Figure 4-6. How much was overhead over or underapplied?A. $14,250B. $10,000C. $ 4,250D. none of these
82. Motorsports, Inc. had a predetermined overhead rate of $2 per direct labor hour. The direct labor hours were estimated to be 25,000. The actual manufacturing overhead incurred was $47,000 and 24,000 actual direct laborhours were worked. How much was overhead over/under applied last year?
83. Tarot Company has a predetermined overhead rate of $6 per direct labor hour. Last year the company incurred $156,600 of actual manufacturing overhead cost and the account was $12,600 underapplied. How many direct labor hours were worked during the year?
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Financial and Managerial Accounting Using Excel for Success
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Chapter 17 / Exercise PR 17–4B
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
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84. Lamar Corporation uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B.Dept. ADept. Bdirect labor cost$66,000$33,000factory overhead$79,200$60,000direct labor hours8,0009,000machine hours4,00015,000What predetermined overhead rate would be used for departments A and B respectively?
85. The Sterling Company applies manufacturing overhead. At the end of the year the following data were available:actual manufacturing overhead$115,000estimated manufacturing overhead$110,000applied manufacturing overhead$100,000The following accounts had the unadjusted balances:raw materials inventory$100,000work-in-process inventory$100,000finished goods inventory$100,000cost of goods sold$300,000What is the journal entry if the amount is considered material?A. Work in Process $ 1,000 Finished Goods $ 1,000Cost of goods sold $ 3,000Manufacturing overhead $5,000B. Work in Process $ 3,000 Finished Goods $ 3,000Cost of goods sold $ 9,000Manufacturing overhead $15,000C. Manufacturing Overhead $5,000 Work in Process $ 1,000 Finished Goods $ 1,000Cost of goods sold $ 3,000D. Manufacturing Overhead $15,000 Work in Process $ 3,000 Finished Goods $ 3,000Cost of goods sold $ 9,000E. none of these

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