Determine the predetermined overhead rate for the year

Assignment Help Financial Accounting

Reference no: EM131259460

Grand Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. In June, Job #315 was completed. Materials costs on the job totaled $1,500 and labor costs totaled $2,400 at $6 per hour. At the end of the year, it was determined that the company worked 15,000 direct labor-hours for the year, and incurred $78,000 in actual manufacturing overhead costs.

Required:

a. Determine the predetermined overhead rate for the year.

Reference no: EM131259460

Questions Cloud

Appear on the job cost sheet for job : Grand Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and ..

Determine the amount of underapplied or overapplied overhead : Grand Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and ..

Journalize the entries to record issuance of the bonds : On January 1, 2016, the first day of the fiscal year, a company issues a $500,000, 5%, 10-year bond that pays semiannual interest of $12,500 ($500,000 x 5% x ½ year), receiving cash of $500,000. Journalize the entries to record (a) the issuance of th..

Grand company uses job-order costing system : Grand Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and ..

Determine the predetermined overhead rate for the year : Grand Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and ..

Employer take from his pay to satisfy part of the tax levy : Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is married with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy?

Statements about materiality : Which of the following statements about materiality is not correct ? Which of ghe the following are considered pervasive constraints by statement of financial accounting cbcept no 2. In classifying the elements of financial statements, the primary di..

Additional paid-in capital would be credited : If a firm sells treasury stock for more than it paid for it: total owners' equity would not change. retained earnings would increase. additional paid-in capital would be credited.

Determine amount of taxable dividend-nontaxable distribution : Determine the amount of taxable dividend, nontaxable distribution, and capital gain, for the distributions made in each of the following cases: SHOW WORK

User Account

All Pages