Cardozo company established its predetermined overhead rate

Assignment Help Managerial Accounting
Reference no: EM13910962

In December 2012, Cardozo Company established its predetermined overhead rate for jobs produced during year 2013 by using the following cost predictions: overhead costs, $ 750,000, and direct labor costs, $ 625,000. At year end 2013, the company's records show that actual overhead costs for the year are $ 830,000. Actual direct labor cost had been assigned to jobs as follows.
Jobs completed and sold . . . . . . . . . . . . . . . . . $ 513,750
Jobs in finished goods inventory . . . . . . . . . . . 102,750
Jobs in goods in process inventory . . . . . . . . . 68,500
Total actual direct labor cost . . . . . . . . . . . . . $ 685,000

1. Determine the predetermined overhead rate for year 2013. 

2. Set up a T-account for Factory Overhead and enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate. 

3. Determine whether overhead is over applied or under applied (and the amount) during the year. 

4. Prepare the adjusting entry to allocate any over or under applied overhead to Cost of Goods Sold.

Reference no: EM13910962

Questions Cloud

Considering expanding its wine-making operations : Lakeside Winery is considering expanding its wine-making operations. The new equipment would cost $138,000, would be depreciated on a straight line basis over its 5-year life, and would have a zero value at the end of the 5th year.
How do web application frameworks assist web developers : How do Web application frameworks assist Web developers?
Cooperative net income to gauge health of cooperative : Describe how you could use the net present value of cooperative net income to gauge the health of a cooperative. How could you use the net present value of owner’s common stock to gauge the health of your cooperative.. Discuss how you could use these..
Briefly describe three ways to connect to the internet : Briefly describe three ways to connect to the Internet. What are the advantages and disadvantages of each approach?
Cardozo company established its predetermined overhead rate : Set up a T-account for Factory Overhead and enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate.
Hedge the cost of its natural gas inputs : One of the most important operating expenses for the Olde Virginia Brick Company is natural gas, which is used to bake and dry the bricks. Natural gas prices have recently been quite volatile, now approaching $6 per mcf. If Olde Virginia does not hed..
Explain the naming conventions used to identify internet : Explain the naming conventions used to identify Internet host computers.
What is the effective interest cost of loan : Set up the amortization schedule for a five-year, $1 million, 9 percent term loan that requires equal annual end-of-year principal payments plus interest on the unamortized loan blaance. What is the effective interest cost of this loan?
What is tcp/ip? how does it work : What is TCP/IP? How does it work?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Sensitivity analysis with profit target

Compute the number of gizmos needed to break even under present price and cost conditions. Compute how many units would have to be sold to meet the profit target for each of suggested options

  Compute the cash payback period and net present value

Compute the cash payback period and net present value of the proposed investment. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).

  Determining classifying cost

Use the following format to classify each cost as a product cost or a general, selling, and administrative (G,S,A) cost. Also indicate whether the cost would be recorded as an asset or an expense. The first is shown as an example.

  Prepare proper title for the annual manufacturing statement

1.Prepare a proper title for the annual manufacturing statement of Arctic Cat. Does the date match the balance sheet or income statement? Why?

  What were the average daily sales units

What was the probability of selling 1 or 2 units on any one day and what were the average daily sales units?

  Components of cost-volume-profit analysis

Describe the components of cost-volume-profit analysis. Employ cost-volume-profit analysis and break-even analysis to make business decisions.

  Managerial accounting case3 from davenport university hii

hii need a tutor to do this assignment for me. i need at least an 80 on it. i need a report with word document and

  Jeffrey vaughn president of frame-it company was just

jeffrey vaughn president of frame-it company was just concluding a budget meeting with his senior staff. it was

  Estimate fixed cost per month for electricity

The high-low method of analysis, the estimated fixed cost per month for electricity is closest to which of the following?

  Find the cost of goods manufactured

Find the cost of goods manufactured (finished) for the year (in thousands of dollars) was

  Prepare a contribution format income statement

Prepare a contribution format income statement and compute the degree of operating leverage.c. If you were a member of top management, would you have been in favor of constructingthe new plant?

  Define financial accounting and managerial accounting

Why do product-costing systems using the direct method, sequential method, and reciprocal method allocate service department overhead costs first to the production departments before assigning them to individual jobs

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