User Account

All Pages

Compute the overhead rate for next year

Assignment Help Cost Accounting
Reference no: EM13523585

The overhead costs that Lucca Industries, Inc., used to compute its overhead rate for the past year are as follows:

Indirect materials $79,200
Maintenance 14,900
Outside service contract 17,300
Indirect labor 79,100
Factory supervison 42,900
Depreciation 85,000
Factory Insurance 8,200
Property taxes 6,500
Heat, Light, power 7,700
Miscellaneous 5,760
Total Overhead $346,560

The allocation base for the past year was 45,600 total machine hours. For the next year, all overhead costs except depreciation, property taxes, and miscellaneous overhead are expected to increase by 10 percent. Depreciation should increase by 12 percent, and property taxes and miscellaneous overhead are expected to increase by 20 percent. Plant capacity in terms of machine hours used will increase by 4,400 hours. Compute the overhead rate for next year.

Reference no: EM13523585

Questions Cloud

Find the minimum thickness of the bubble : Consider the re?ection of light from a soap bubble. The bubble is a thin ?lm of water with air on both sides. Find the minimum thickness (nm) of the bubble so that reflected light constructively interferes
Board of directors in a healthcare facility : What is the importance of having a board of directors in a healthcare facility? imporance of having a board of governance?
Prepare the adjusting entries needed at july 31 : Prepare the adjusting entries needed at July 31, 2012 - Contreras owed employees $1,100 in salaries that the company will pay in August.
Find the focal length of a simple magnifier : Find the focal length (cm) of a simple magnifier which has a magnification of 5.5. Use 25 cm for the near point. Assume that the image is at infinity
Compute the overhead rate for next year : Plant capacity in terms of machine hours used will increase by 4,400 hours. Compute the overhead rate for next year.
Marcus and arishonne both work to maintain the standard : Marcus and Arishonne both work to maintain the standard of living that this couple desires, but they are unable to meet the time demands of both work and domestic life.
Minimum pre tax return of on all investment projects : By reducing labor and other operating costs, the machine would provide annual cost savings of $44,000. The company requires a minimum pre tax return of 19% on all investment projects.
Calculate the total product cost for noteworthy : Calculate the total product cost for Noteworthy - Noteworthy, Inc., produces and sells small electronic keyboards
In philosophy-a logical error is called a logical fallacy : In philosophy, a logical error is called a logical fallacy. There are many logical fallacies to watch out for when making or evaluating a philosophical argument. Demonstrate your understanding of each of the following logical fallacies by using yo..

Reviews

Write a Review

Cost Accounting Questions & Answers

  Difficulties in financial statement analysis

Many assets are presented at historical cost. Why does this accounting principle cause difficulties in financial statement analysis?

  Question 2mark worked as route manager for united trucks

question 2mark worked as route manager for united trucks pty ltd in queensland from 2002-08. a term of his contract was

  Calculate the balance in ending work in process

Calculate the balance in ending work in process and cost of goods sold before any adjustments for under- or overallocated overhead and calculate under- or overallocated overhead.

  Should paris accelerate recognition of this gain

Should Paris accelerate recognition of this gain from next year to this year, suppose a net capital loss carryforward in each of the subsequent amounts?

  Find the present worth of annual disbursements

The investment has infinite life. With a 10 percent interest rate, Find the present worth of annual disbursements? How do we get this?

  Evaluate the sales tax on purchase price

One printing press was new, and the other was used by a business that currently filed for bankruptcy. Costs related to new printing press

  Develop a break even analysis

How does the firm use "Cost-Volume-Profit Analysis" to assess performance? How would you use such a system to measure how costs change as production changes? How do you develop a "break even analysis" for a given firm and how would you use it?

  Determine the book value of bedford''s buildings

Grant Company acquired all of Bedford Corporation's assets and liabilities on January 1, 20X2, in a business combination. At that date, Bedford reported assets with a book value of $641,000 and liabilities of $375,000. Grant noted that Bedford had..

  Calculate price-earnings ratio

A company had a market price of $38.10 per share, earnings per share of $1.55, and dividends per share of $0.70. Calculate its price-earnings ratio

  Prepare singlestep income statement and simple balance sheet

Prepare a single-step Income Statement and simple Balance Sheet for Smith Delights Bakery for the year ended December 31, 2011.

  Explain what is zero-based budgeting

Explain what zero-based budgeting is and how it can improve theefficiency of the organization? Zero-based budgeting is the process in which managers can plan an educated guess of his or her projected expenses for a precise time period as if the p..

  Salaries of maintenance workers

Salaries of maintenance workers,where one maintenance workers is needed for every 1200 machine hours or less ( that is, 0 to 1200 hours requires one maintenance workers, 1201 to 2400 hours requires two maintenance workers, etc. At present 4800 mac..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd