+1-415-670-9189
info@expertsmind.com
Firm predetermined overhead rate
Course:- Accounting Basics
Reference No.:- EM13149047




Assignment Help
Assignment Help >> Accounting Basics

Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is $240,000. The firm employs 10 master clockmakers, who constitute the direct-labor force. Each of these employees is expected to work 2,000 hours during the year. The following events occurred during October.

a. The firm purchased 3,000 board feet of mahogany veneer at $11 per board foot.

b. Twenty brass counterweights were requisitioned for production. Each weight cost $23.

c. Five gallons of glue were requisitioned for production. The glue cost $20 per gallon. Glue is treated as an indirect material.

d. Depreciation on the clockworks building for October was $8,000.

e. A $400 utility bill was paid in cash.

f. Time cards showed the following usage of labor:

Job number G60: 12 grandfather's clocks, 1,000 hours of direct labor

Job number C81: 20 cuckoo clocks, 700 hours of direct labor

The master clockmakers (direct-labor personnel) earn $20 per hour.

g. The October property tax bill for $910 was received but has not yet been paid in cash.

h. The firm employs laborers who perform various tasks such as material handling and shop cleanup. Their wages for October amounted to $2,500.

i. Job number G60, which was started in July, was finished in October. The total cost of the job was $14,400.

j. Nine of the grandfather's clocks from job number G60 were sold in October for $1,500 each.

Required:

1. Calculate the firm's predetermined overhead rate for the year.

2. Prepare journal entries to record the events described above.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
the auditor of Glaxoa Corporation (Glaxoa) for the current year.  For each situation:1 Describe the corrections, if any, you would propose to management to make the financial
Assume that the chance of loss is 3 percent for two different fleets of trucks. Explain how it is possible that objective risk for both fleets can be different, even though
Innova also incurs 5% sales commission ($0.35) on each disc sold.  Mudd Corporation offers Innova $4.75 per disc for 5,000 discs. Mudd would sell the discs under its own bra
On the first day of its fiscal year, Robbins Company issued $1,900,000 of 6-year, 6% bonds to finance its operations of producing and selling home improvement products. Inte
Referring to the information in the question, provide four examples of accounting policy choices that ANZ may have made in determining profit that may have increased this
On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. Materials inventory Work in process inventory Finished goods inventory Ma
The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would resul
The previous auditors did not disclose any fraud or any management issues at the meeting with BakFirn and YOUCPA. The reason for the auditor change was explained as a costs