Calculate the amount of overhead to be applied

Assignment Help Accounting Basics
Reference no: EM133013256

Question - Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours.

A) For 2019, the company's cost accountant estimated that the total overhead costs incurred would be $ 693,600 and that a total of 68,000 direct labor hours would be worked. Calculate the amount of overhead to be applied to each direct labor hour worked on a production run. Please round your answer to 2 decimal places.

B) A production run of 500 coffee mugs used raw materials that cost $ 600 and used 60 direct labor hours at a cost of $11.80 per hour. Calculate the cost of each coffee mug produced.

C) At the end of October 2019, 410 coffee mugs made in the production run in part B had been sold and the rest were in ending inventory.

Required -

a) Calculate the cost of the coffee mugs sold that would have been reported in the income statement and

b) Calculate the cost included in the October 31, 2019 finished goods inventory. Please round your answers to 2 decimal places.

Reference no: EM133013256

Questions Cloud

What adjusting journal entries would you propose : Is the entity correct in classifying this as an asset? Or should this be classified as an expense? Why? (b) What adjusting journal entries would you propose
Which of the two should be chosen by the company : Assuming Project A and B are mutually exclusive projects, which of the two should be chosen by the company
Give a dfa to recognize language : Give a DFA to recognize this language. You will be penalized for solutions that use more than 4 states - decides whether the language recognized by the NFA
What is there TDS limit : Amira and Owen pay, on average, $800 towards their credit cards every month, What is there TDS limit
Calculate the amount of overhead to be applied : For 2019, the company's cost accountant estimated that the total overhead costs incurred would be $ 693,600. Calculate the amount of overhead to be applied
Problem - Budgeting and Performance Measurement : Problem - Budgeting and Performance Measurement - Briefly describe the relevance of using BSC at the Ministry of Health
Ideas about transnational practice : Share content and ideas about transnational practice that is informative for the members of the group and works to add to your professional network by asking fo
Determine the present book value of a laptop : A company laptop has 3 years asset life. Determine the present book value of a laptop bought in 2019 for 35,000 if the depreciation cost is php2,000.00
Determination of section capacity from code : Determination of section capacity from Code for flexural, shear and reaction then choice of beams, columns and other structural element

Reviews

Write a Review

Accounting Basics Questions & Answers

  The unit fixed manufacturing cost and fixed marketing and

the following information is available for each unit of the finished product produced and sold sales price 55sr

  What are the entries runway would record

What are the entries Runway would record when the $25 Referral Credit is redeemed against a $100 purchase made by the Existing Customer

  Calculate any dividends in arrears in years

In its first year of operations, it paid $452,000 of dividends to its preferred shareholders. Calculate any dividends in arrears in years

  Returns the property to paulsons

Paulsons Partnership owns a building that it has rented out to Corner Grocery Store for the last 10 years. Corner goes out of business and returns the property to Paulsons.

  Determine the inventorys direct labor costs

Red Wing Company applies factory overhead based on direct labor costs. The company incurred the following costs during 2011: direct materials costs, $637,500; direct labor costs, $2,500,000; and factory overhead costs applied, $1,000,000.

  Represent the ideal structure

For this assignment, you should create an organizational chart to represent the ideal structure for your current organization (or one with which you are familiar). You should include:

  Discuss how much is includible by jane in her gross income

How much is includible by Jane in her gross income for the current taxable year with respect to the distribution to her

  Heathrow issues 1700000 of 8 15-year bonds dated january 1

heathrow issues 1700000 of 8 15-year bonds dated january 1 2011 that pay interest semiannually on june 30 and december

  Identify and classify the noncash assets and liabilities

Identify and classify the noncash assets and liabilities resulting from the current-year transactions

  Prepare the necessary journal entries to record the events

Apr 13 Customer A paid their account balance in full. Prepare the necessary journal entries to record the above events for Crowe Company for April, 2020

  Assume that he is considering two new selling

Kevin Plank of Under Armour is introduced in the chapter's opening feature. Kevin currently sells his products through multiple outlets.

  How would calculate percentage change for items budget

How would you calculate the percentage change for items in your budget?The data represents average actual monthly costs over the past three months

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