s predetermined overhead rate f
Q: Overapplied manufacturing overhead occurs when: a. applied overhead exceeds actual overhead. b.…
A: Introduction: Underapplied overhead: Overheads are expenses. Underapplied means the applied overhead…
Q: What is the predetermined overhead allocation rate?
A:
Q: Compute the Predetermined Overhead Rate.
A: Predetermined Overhead rate is the rate at which the Overhead is applied to the Product based on the…
Q: Describe fixed manufacturing overhead under absorption costing.
A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…
Q: There must be a correlation between the activity and changes in the amount of overhead. True /…
A: Correlation:-It refers to the statistical relationship between two variables or activities.…
Q: ng overhead totali d direct materials t
A: Given: X Company reported total manufacturing costs of $300,000, manufacturing overhead totaling…
Q: How is the predetermined overhead allocation rate determined?
A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…
Q: Explain fixed manufacturing overhead.
A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…
Q: What is meant by overheads? How are overheads classified? Give suitable examples
A: Overhead refers to the expenses a business incurs on a daily basis while operating its activities.
Q: e overhead rate
A: Overhead of purchasing activity Total overhead * Percentage of overhead for purchasing activity…
Q: What's predetermined overhead used for, and why?
A: A predetermined overhead rate is a rate that is used to apply the expected cost of manufacturing…
Q: What is the actual total overhead for the period?
A: Solution:- Given, Applied fixed overhead based on standard direct labor hours allowed = $50,000…
Q: How is predetermined overhead rate established? How is it used to apply overhead?
A:
Q: nount toward total overhead?
A: There are three department . Contribution to overhead is a amount of money that department has…
Q: What is an overhead absorption rate?
A: Overhead: It refers to an ongoing cost incurred to operate a business. Overheads exclude the…
Q: adjustment of underapplied manufacturing overhead cost
A: Underapplied manufacturing overhead cost are disposed by increasing cost of goods sold. This will…
Q: Compute the overhead rate for each activity
A: Cost Driver Rate(Overhead rate) = Total Cost of Activity / Cost Driver Units
Q: What is the definition of an overhead absorption rate?
A: Overhead: It is an expense that is incurred continuously to run a company. Overheads are expenses…
Q: Direct material Direct labor Overhead Total
A: The overheads are applied to production on the basis of predetermined overhead rate. As per…
Q: Explain variable overhead costs.
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: e activity-based factory overhead per unit f
A: Under activity-based costing technique costs are assigned to each product based on cost drivers…
Q: overhead under- or over-
A: Under-applied overhead = Under-applied overhead occurs when an entity has budgeted overhead less…
Q: What is the standard variable overhead rate and standard fixed overhead rate?
A: The overhead rate is calculated by dividing total indirect costs (also known as overhead) for a…
Q: predetermined overhead rate
A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…
Q: predetermined overhead rate
A: Predetermined overhead rate = Total estimated overhead/Total machine hours
Q: Explain the difference between under-allocated overhead and over-allocated overhead. What causes…
A: Overhead is applied using estimated or budgeted overhead and a base. Actual overhead costs are…
Q: Overhead expenses can be classified according to O a. Functions O b. Elements Oc. All of the above O…
A: Overhead expenses are all indirect costs of manufacturing the product or selling the product. These…
Q: Costs labor and uo o1ɔ IJed o O UoueAIm:
A: In this problem , Nelly Co. incurred a cost for plannting…
Q: Overhead assigned to KJ22 product?
A: Formula: Overhead assigned to Batches = Setting up batches x Number of batches
Q: What is underapplied overhead? Overapplied overhead?
A: The under applied overhead is explained as below,
Q: single predetermined overhead rate using volume-based drivers,
A: If a single predetermined overhead rate based on volume-based drivers is used for all products, cost…
Q: What are the standard variable and fixed overhead rates?
A: Overhead is computed by dividing an allocation measure's overall indirect expenses (also known as…
Q: Define the term manufacturing overheads.
A: Manufacturing overhead is all indirect costs incurred during the production process. This overhead…
Q: What are the two primary elements that influence the amount of overhead that is absorbed?
A: Whenever overheads are absorbed in a rate determined by objective data, the absorbed overhead should…
Q: How is the predetermined overhead allocation rate used to allocate overhead?
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
Q: what are the two main factors that give to over/under absorption of overhead ?
A: When overheads are absorbed in a rate depending on actual data, the absorbed overhead should be…
Q: Means schedule curve establishe work pay item represented by ba
A: s-curve is a graph that plots a relevant cumulative data field- such as man hour or cost-against…
Q: Define fixed overhead costs.
A: Definition: Manufacturing Overheads: The cost which is indirectly related to the production is…
Q: A direct cost is one that is a. Variable with respect to the cost object. b. Traceable to the cost…
A: Direct cost: A cost indicates the payment of cash or the obligation to pay the cash in the future…
Q: type of Overheads
A: There are various costs incurred while running a business. While some costs can be directly traced…
Q: How do I calculate the overhead allocations?
A: Cost allocation: Cost allocation is a process of assigning or allocating indirect costs to each and…
Q: Explain Overhead allocation and give at lest two examples
A: Overhead allocation: It is the apportionment of indirect costs to produced goods. It is…
Q: Multiple predetermined overhead rates:
A: Overheads :- In manufacturing companies, there will be multiple departments and for each department,…
Q: The predetermined overhead rate is:
A: Predetermined overhead rate = Total Fixed overhead cost/Total Estimated labour hours The…
Q: Conversion costs include direct labor and manufacturing overhead. Select one: O a. FALSE O b. TRUE
A: Conversion costs: It is sum total of direct manufacturing labor costs and manufacturing overhead…
Q: Define under or over applied overhead.
A:
Q: When and how to calculate the predetermined overhead rate?
A: Predetermined overhead rate can be defined as the allocation rate that is used to apply…
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- If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
- The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
- A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
- Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?