Overapplied or underapplied overhead: manufacturer, Cost Accounting

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

To amortize the office improvements, On July 1, 2008, Falk Company signed a...

On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years. The lease contract calls for annual (prepaid) rental payments of $100,000 on each July 1

Accounting case study, Accounting Case Study: The Champlain Career Con...

Accounting Case Study: The Champlain Career Consulting Corporation ("CCCC") is owned by three Trent graduates. Incorporated in 2009, CCCC provides a wide-range of career plann

Abnormal loss account and abnormal gain account, A product is manufactured ...

A product is manufactured by passing through three processes: A, B and C. In process C a by-product is also produced which is then transferred to process D where it is completed. F

Determine a cost system that uses estimated overhead costs, 1) Presented be...

1) Presented below is a list of terms, followed by definitions or descriptions of those terms. a. Cost pool b. Actual cost system c. Cost driver d. Manufacturing diver

Budgetary planning and control, Budgetary Planning and Control Budgeti...

Budgetary Planning and Control Budgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in the defined duration. Th

Batch costing, Batch Costing This is a kind of job costing that is uti...

Batch Costing This is a kind of job costing that is utilized when production consists of limited repetitive work and definite number of item manufactured in one batch. A batc

Determine the interest expense is deductible, Assume the same facts as in 1...

Assume the same facts as in 1A above, except that the interest payment checks were placed on the shareholders' office on December 31, 2012. However, the shareholders are not in the

Recording Transactions, I have a project due this week and I am having slig...

I have a project due this week and I am having slight issues with the transactions. I cannot seem to receive the correct titles under the recordings

Give feasibility study and propose an electronic system, A small company em...

A small company employing around 25 people manufactures and sells anthropometric measuring equipment - equipment used mainly in hospitals to measure the height and other dimensions

Difference, difference between diffrential cost and marginal cost

difference between diffrential cost and marginal cost

Write Your Message!

Name

Email id

Message

Verfication Code

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

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