Predetermined overhead rate based on direct labor hours

Assignment Help Financial Accounting

Reference no: EM131222625

Hutchins Company uses a predetermined overhead rate based on direct labor hours (DLHs) to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and DLHs would be 20,000. The actual figures for the year were $215,000 for manufacturing overhead and 21,000 DLHs. The cost records for the year will show: A) overapplied overhead of $5,000. B) underapplied overhead of $5,000. C) overapplied overhead of $10,000. D) underapplied overhead of $10,000.

Reference no: EM131222625

Questions Cloud

Activity levels and cost : Activity levels and Cost Drivers Steve's slop shop, a small hamburger shop, has identified the resources used in its operations ( assume each customer's order is a batch for this example)

Prepare reconciliation schedule to convert income : Bessrawl Corporation reported income in 2014 of $1,000,000 and stockholder’s equity at December 31, 2014, of $8,000,000. Prepare a reconciliation schedule to convert 2014 income and December 31, 2014, stockholders’ equity from a U.S. GAAP basis to IF..

What type of equipment costs will change result of addition : A hospital adds a new addition and needs to acquire some new equipment for the addition. The cost driver for the equipment is patient−days per month. The new addition increases the patient−days per month outside the relevant range. What type of equip..

Day-to-day business operation and all of the marketing : You and a friend will both invest $20,000 into a personal fitness business you are establishing. You will handle most of the day-to-day business operation and all of the marketing. You feel you should receive 70% of the profits from the business beca..

Predetermined overhead rate based on direct labor hours : Hutchins Company uses a predetermined overhead rate based on direct labor hours (DLHs) to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and DLHs would be 20,000. The..

Compute the unrealized gains or losses : Parnevik Company has the following securities in its investment portfolio on December 31, 2014 (all securities were purchased in 2014): (1) 3,050 shares of Anderson Co. common stock which cost $54,900, (2) 10,160 shares of Munter Ltd. common stock wh..

Summarizes production operations and sales activities : Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is: Debit Accounts Receivable $810,000; credit Sales $810,000; debit ..

Determine total sources and use of cash for the first month : The Toronto Diner, opened a sole proprietorship by Felix Fudd, recorded the following transactions during it's first initial month of operations: Rented facilities for $3,000 per month and paid the lessor $9,000 for the first three months. Determine ..

Calculate the present value for investments : Investment X offers to pay you $6,000 per year for nine years, whereas Investment Y offers to pay you $8,700 per year for five years. Calculate the present value for Investments X and Y if the discount rate is 6 percent. (Do not round intermediate ca..

User Account

All Pages