# Figure 4 6 the fast furious company produces two

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Chapter 17 / Exercise PR 17–4B
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
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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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Chapter 17 / Exercise PR 17–4B
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
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