Overapplied or underapplied overhead: manufacturer, Cost Accounting

Overapplied or underapplied overhead: manufacturer, Cost Accounting

Assignment Help:

Budgeted direct labour cost 75000 hours @ $16 per hour
Budgeted manufacturing overhead 80 000 hours @ $17.50 per hour
Actual direct labour cost $997 500

Budgeted manufacturing overhead
Actual manufacturing overhead:

Depreciation $231 000
Property taxes 21 000
Indirect labour 82 000
Supervisory salaries 200 000
Electricity 59 000
Insurance 30 000
Factory rent 300 000
Indirect material (see data below) 90 000
Indirect material:
Beginning inventory, 1 January 48 000
Purchases 94 000
Ending inventory, 3.1 December 63 000
Required:

1. Calculate the firm''s predetermined overhead rate, which was based on direct labour hours.
2. Calculate the overapplied or underapplied overhead for the year.
3. prepare a journal entry to close the manufacturing overhead account to cost of goods sold''
4. What caused the overapplied or underapplied overhead?

Related Discussions:- Overapplied or underapplied overhead: manufacturer

What kinds of benefits have communities realized due to fca, Q. What kinds ...

Q. What kinds of benefits have communities realized due to FCA? Communities have understood the following benefits by using FCA: • Rates or tipping fees are set right and fa

explain your calculation of relevant net cash flows, Polycorp Limited Stee...

Polycorp Limited Steel Division is considering a proposal to purchase a new machine to manufacture a new product for a potential three year contract. The new machine will cost $1

Cost accounting foundation and evolution, Define cost behavior and Describe...

Define cost behavior and Describe types of costs.

Target costing, conclusion

conclusion

Commodities to stock, Commodities to Stock Employ Material Req...

Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A

Purpose of cost estimation, Purpose of Cost Estimation In estimating i...

Purpose of Cost Estimation In estimating it assists the future expenditure as cost prediction like the expenditure will depend upon the cost of the respective activities a)

Calculate over applied overhead for last year, The following information re...

The following information relates to Araceli Manufacturing Company: total estimated manufacturing overhead cost at beginning of year $864,000 predetermined overhead rate (based

Incentive Wage Plans, Compute

Compute

Test accounting of monetary instruments, This question tested the accountin...

This question tested the accounting of monetary instruments, especially an asset held at reasonable value through loss or profit. The preparation of the journal for subsequent and

Costing, costing in respect of mathematical accounting a research project.

costing in respect of mathematical accounting a research project.

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd