Calculate overhead application rate at the begining of year

Assignment Help Financial Accounting

Reference no: EM131266441

Carmen has a bakery that specializes in dog food in a variety of sizes and flavors. Carmen uses a flexible budget to forecast manufacturing overhead, which is then allocated to products based on over hours. The annual flexible overhead budget is estimated to be $200,000 plus $15 per oven hour.

The budget number of oven hours for the year is 10,000. At the end of the year, it turns out that 10,500 oven hours were used and actual overhead cots totaled $370,000

1) Calculate the overhead application rate at the begining of the year.

2) Calculate the amount of under/over-absorbed overhead for the year.

3) The policy is to write off any under/over-absorbed overhead to cost of good sold at the end of the year. Will Carmen's next income rise or fall this year when the under/over-absorbed overhead is closed out?

Reference no: EM131266441

Questions Cloud

The efficiency variance measures : The efficiency variance measures? ________. The Finishing Department had 10,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 30,000 units were received f..

Calculate and document tax refund or payments : Tax Scenario. Use the required tax forms (1040 & Schedules) to calculate and document John and Jamie’s tax refund or payment. You can also upload a Word, Excel, or other document to show your calculations. You can omit the Earned Income Tax credit fo..

There was favorable direct labor efficiency variance : Holiday Foods is famous for its frosted fruit cake. The main ingredient of the cake is dried? fruit, which Holiday purchases by the pound. In? addition, the production requires a certain amount of direct labor. Holiday uses a standard cost? system, a..

Units were transferred to the finished goods inventory : The Blue Corporation started and completed 6,000 units during February. Blue started the month with 820 units in process (40% complete) and ended the month with 480 units in process (40% complete). How many units were transferred to the Finished Good..

Calculate overhead application rate at the begining of year : Carmen has a bakery that specializes in dog food in a variety of sizes and flavors. Carmen uses a flexible budget to forecast manufacturing overhead, which is then allocated to products based on over hours. Calculate the overhead application rate at ..

Balance sheet for accounts receivable-plant and equipment : Prepare a budgeted income statement that summarizes the activity for the two months ended March 31. Compute the amounts that would appear on the March 31 balance sheet for accounts receivable, plant and equipment (net), and retained earnings.

Preliminary ending balance in manufacturing overhead account : In 2016, the Calimari Company used a predetermined manufacturing overhead rate of $5 per machine hour. Information for the year is as follows: Indirect materials $15471 Indirect labor $13,750 Plant depreciation $4,800 Plant utilities and insurance $1..

Is this capital or operating lease : Makewell Hospital is leasing a piece of medical equipment from Medical Equipment Manufacturing (MEM) for five years. The equipment should last at least ten years with normal maintenance. Calculate the annual lease payment that MEM would charge if Mak..

Prepare the journal entry to record the bond issuance : On January 1, 2016, Barden Universal issued 12% bonds dated January 1, 2016, with a face amount of $200 million. The bonds mature in 2025 (10 years). Determine the price of the bonds at January 1, 2016. Prepare the journal entry to record the bond is..

User Account

All Pages