Overapplied or underapplied overhead: manufacturer, Cost Accounting

Assignment Help:
Budgeted direct labour cost 75000 hours @ $16 per hour
Budgeted manufacturing overhead 80 000 hours @ $17.50 per hour
Actual direct labour cost $997 500

Budgeted manufacturing overhead
Actual manufacturing overhead:

Depreciation $231 000
Property taxes 21 000
Indirect labour 82 000
Supervisory salaries 200 000
Electricity 59 000
Insurance 30 000
Factory rent 300 000
Indirect material (see data below) 90 000
Indirect material:
Beginning inventory, 1 January 48 000
Purchases 94 000
Ending inventory, 3.1 December 63 000
Required:

1. Calculate the firm''s predetermined overhead rate, which was based on direct labour hours.
2. Calculate the overapplied or underapplied overhead for the year.
3. prepare a journal entry to close the manufacturing overhead account to cost of goods sold''
4. What caused the overapplied or underapplied overhead?


Related Discussions:- Overapplied or underapplied overhead: manufacturer

Calculate operating income under throughput costing, The follow data relate...

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

EXPECTED CASH COLLECTIONS, WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PAT...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Cvp analysis in situations subject to change, CVP Analysis in Situations Su...

CVP Analysis in Situations Subject To Change Revenue and Cost will change and also sales volume because of a number of factors involving: a) Increased competition may need

Principles of marginal costing, Principles of Marginal Costing The pri...

Principles of Marginal Costing The principles of marginal costing are as given: 1. Period fixed costs are similar, for any volume of sales and production provided suc

Manufacturing a/c, value of which items are required to be put in a simple...

value of which items are required to be put in a simple format of manufacturing a/c.

Calculate contribution to sales ratio, Q. Calculate contribution to sales r...

Q. Calculate contribution to sales ratio? Contribution per unit= sales price per unit less variable cost per unit Break-even volume = Fixed overhead/Contribution per uni

Cost sheet, what is a cost sheet? what are its advantages?

what is a cost sheet? what are its advantages?

Depreciation (to be computed), I just do not know which form those numbers ...

I just do not know which form those numbers should go in. I would canculate the results myself. Thanks John and Ellen Brite are married and file a joint return. They have no depend

Determine profit in long-term, Determine Profit in Long-Term To demons...

Determine Profit in Long-Term To demonstrate the point about profit in the long-term, let us assume that a company sells and makes a single product.  There are no opening stoc

Write Your Message!

Captcha
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