Calculate the predetermined overhead allocation rate.

Assignment Help Accounting Basics
Reference no: EM13157977

The predetermined overhead allocation rate for Harris, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual cost incurred were:
Direct material $250,000
Direct labor 410,000
Indirect material 55,000
Indirect labor 125,000
Sales commissions 50,000
Factory depreciation 170,000
Property taxes, factory 15,000
Factory utilities 35,000
Advertising 62,500
Factory equipment rental 100,000

a. Calculate the predetermined overhead allocation rate. 

b. Calculate the overhead cost applied during the year.
c. Determine the amount of over- or underapplied overhead. 

d. Prepare thejournal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.

Reference no: EM13157977

Questions Cloud

Elements of effective ethics program : Describe the characteristics of at least 2 components of an effective ethics program. Define why you chose these components as the most important requirements for managing a formal business ethics program.
State the half-life for the radioactive decay : The half-life for the radioactive decay of [U]-238 is 4.5 billion years and is independent of initial concentration.
Government wide statement of net assets? : Do you have the Government Wide Statement of Net Assets?
Social use of sanjuanes in ecuador : Compare the social use of beiguan music in Taiwan to the social use of sanjuanes in Ecuador. In your opinion which is more important to the culture of its people?
Calculate the predetermined overhead allocation rate. : a. Calculate the predetermined overhead allocation rate. b. Calculate the overhead cost applied during the year.c. Determine the amount of over- or underapplied overhead.
State sample of gastric juice was taken from a patient : A 20.0 mL sample of gastric juice was taken from a patient suspected of having hypochloridia (low stomach acid). The sample was taken several hours after a meal so there was no ingested food or drink
Explain what is the maximum amount of silver chloride : What is the maximum amount of silver chloride that can be formed? IN GRAMS b.What is the FORMULA for the limiting reagent?
State it is often possible to change a hydrate : It is often possible to change a hydrate into an anhydrous compound by heating it to drive off the water (dehydration). A 46.06 gram sample of a hydrate of MnSO4
Nonhospital-nonphysician sectors of healthcare industry : List the major nonhospital and nonphysician sectors of the healthcare industry. Describe the two major theories used for the detection of out-of-control costs.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Qualified veterans mortgage bonds

Fluent an investor in stocks and bonds wanted to increase his portfolio but wanted to minimize his tax liability on the income from the bonds. He is presented with the following alternative investments: US Series EE bonds, bonds for industrial dev..

  How much should it report as forrign income exhange loss

When Post Collected the receivable on February 15, 2012, the U.S. dolalr equivalent was $95,000. In PoST'S 2010 Consolidated income statement, how much should it report as forrign income exhange loss?

  How much should the town report as property tax revenue

How much should the town report as property tax revenue in its General Fund statements for the year 2009?

  Finding the net income

Tonga Industries reported the following: Net Sales $450,000 Cost of goods sold $360,000 Operating expenses $60,000 Tax Rate 40% The net income is:

  Determining personal after-tax yield

An investor recently purchased a corporate bond which yields 9 percent. The investor is in the 36 percent combined federal and state tax bracket. What is the bond's after-tax yield?

  What are the effects of the annuity of betty gross income

On July 1, 1998, when Betty was 65 years old, she purchased an annuity contract for $108,000. The annuity was to pay Betty $9,000 on June 30 each year for the remainder of her life. Betty died on March 31, 2011. What are the effects of the annuity..

  End of the fiscal period

Suppose that nominal accounts are not closed out at the end of the fiscal period. Explain how this affects account data for the next fiscal period. Use a company or industry to help explain your answer.

  Journal entries for government based on production

Prepare Journal Entries for the government based on the production of fund-based financial statements. Than prepare JE entries in anticipation of preparing governement-wide financial statements.

  Fasb conceptual framework

What bodies provide authoritative support for GAAP? What elements comprise the FASB's conceptual framework?

  Preparing a trial balance-accounts in the ledger

Record each transaction in journal form and post to the appropriate accounts in the ledger. Prepare a Trial Balance for January 31, 2008.

  Indicate the type of account

"For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers.

  Apollo long term liabilities

What are the options for an entity trying to invest in its growth? How does Apollo finance its business? Did you identify any errors or findings in Apollo's long term liabilities? Do the activities of Apollo require any additional or particular di..

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!

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