Acct Practice Problems

Problem 1. The following information pertains to Specialty Fittings Inc. for 2002 Budgeted direct labor cost 75,000 hours @ 16 per hour Actual direct labor cost 80,000 hours @ 17.50 per hour Budgeted manufacturing overhead 997,500 Actual manufacturing overhead 1,002,000 Required Compute the firms predetermined overhead rate, which is based on direct labor hours. Calculate the over or under applied overhead for 2002 Prepare the journal entry necessary to close out the Manufacturing Overhead account. Assume that the amount of the over or under applied overhead is immaterial.  Problem 2 The following selected information was extracted from the cost records of Breitman Corporation. Depreciation, factory equipment 17,000 Depreciation, factory building 13,000 Rent, factory building 30,000 Rent, office building 15,000 Maintenance, factory building 10,000 Depreciation, office building 9,000 Breitman calculates its predetermined overhead rate based on direct labor hours. Breitman estimates 20,000 direct labor hours Actual hours worked were 17,000 hours Actual Overhead cost amounted to 59,900. Required Calculate Breitmans predetermined overhead rate. What is the amount of overhead applied to production by Breitman this period and determine whether overhead was over or under applied Make the journal entry to close out the over or under applied overhead as determined above. Problem 3 Foster estimate that its overhead rate for 2004 will be 3.00 and the activity base for 2004 will be 300,000 units. Required Calculate the amount of Estimated overhead costs that the company projected for 2004. If 24,000 units of product were made in April 2004, how much overhead cost would be allocated to the Work in Process Inventory account during the month If actual overhead costs in April were 70,000, would the overheard account be over or under applied for the month. By how much What is the journal entry to close out the overhead account