### Compute the predetermined overhead rates

Assignment Help Accounting Basics
##### Reference no: EM13756364

Lennox Company uses a job order costing system. The company uses predetermined overhead rates in applying manufacturing overhead costs to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct labor cost. At the beginning of 2014, the company's management has made the following estimates for the year:Department A Department B Direct labour-hours 15,000 30,000 Machine-hours 50,000 12,000 Direct labour cost \$80,000 \$172,000 Manufacturing overhead 162,500 215,000

Job 145 was initiated into production on August 1 and completed on September 15. The company's cost records show the following information on the job:Department A Department B

Direct labour-hours 22 40 Machine-hours 80 20 Direct material used \$450 \$250 Direct labour cost 120 180

Required:

1. Compute the predetermined overhead rates that should be used during 2014 in Department A and B.

2. Compute the total overhead cost applied to job 145.

3. What would be the total cost of job 145? If the job contained 10 units, what would be the cost per unit?

4. At the end of 2014, the records of Lennox Company reveal the following actual cost and operating data for all jobs work on during the year:Department A Department B Direct labour hours 14,500 32,000 Machine-hours 48,000 13,000 Direct labour cost \$78,000 \$174,000

Manufacturing ovherhead 160,000 216,000 Compute the amount of underapplied or overapplied overhead in each department at the end of 2014 and explain most likely reasons why the underapplication or overapplication has taken place.

#### Questions Cloud

 What are the dangers slowing down economic growth : There are many factors that help the growth of the economy, but two of these factors are more important for economic global growth. What do you think are the two main factors that contribute to global economic growth? What are the dangers slowing dow.. Prepare a consolidation worksheet : Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 20X1 after the acquisition transaction is completed. Particular product in an assembly line operation : The Dynaco Manufacturing Company produces a particular product in an assembly line operation. One of the machines on the line is a drill press that has a single assembly line feeding into it. A partially completed unit arrives at the press to be work.. Evolution of purchasing and supply management : Briefly discuss these 4 periods in the evolution of purchasing and supply management. Compute the predetermined overhead rates : Compute the predetermined overhead rates that should be used during 2014 in Department A and B. Compute the total overhead cost applied to job 145. Create public relations campaign for financial institution : In your group, create a public relations campaign for a financial institution that has recently received negative exposure in the media pertaining to its lack of responsiveness to those wishing to modify existing home loans. The goal of your campaign.. Interviewing for a management position : You are interviewing for a management position at Northern Air Cargo (NAC), a general airfreight service that operates throughout Alaska. As part of your preparation for the interview, you thoroughly check out their website. You also found out that t.. Compute production costs per unit : Compute production costs per unit for both approaches and for both quarters. Identify vulnerabilities relative to information assurance : How does an organization identify its vulnerabilities relative to information assurance and security. How do they identify the legalities and ethics involved. What should it do after it has identified them.

### Write a Review

#### M and e are equal partners in the me partnership e decides

m and e are equal partners in the me partnership. e decides to leave the partnership and receives a liquidating

#### Investment in working capital problem

Investment in working capital needed to service the project is treated in the net present value method as:

#### Kalifo comapny manufacures a line of electric garden tools

kalifo comapny manufacures a line of electric garden tools that hardware store sell the companys controller will fulton

#### A standard cost card says that a product is suppose to use

a standard cost card says that a product is suppose to use 4lb of material b per finished unit and that the standard

#### Compute the weighted-average number of shares

Compute the weighted-average number of shares to be employed in computing earnings per share for 2013.

#### Explain at least two pros and two cons of limiting executive

Critics have charged that compensation to top management in the United States is simply too high and should be cut back. If compensation is tied to performance, should there be a ceiling on an executive's earnings? Explain at least two pros an..

#### Evaluate charlottes proposal do you support use of a

the city of medina park operates a plumbing and electrical maintenance department responsible for maintaining all water

#### Mitchell and debbie both 55 years old and married sell

mitchell and debbie both 55 years old and married sell their personal residence to sophie. sophie pays 225000 and

#### In february one of the processing departments at whisenhunt

in february one of the processing departments at whisenhunt corporation had beginning work in process inventory of

#### Determine the initial markup for a designer boutique that

determine the initial markup for a designer boutique that has the following projections for the next season planned

#### Rikki company received proceeds of 188000 on 10-year 6

rikki company received proceeds of 188000 on 10-year 6 bonds issued on january 1 2014. the bonds had a face value of

#### Internal control elements vary in their design and

internal control elements vary in their design and application under the manual systems versus the electronic systems.