labor rate per hour $ 8.00 Machine hours used. 200 Predetermined overhead rate per machine hour $15.00 What is the total manufacturing cost recorded on Job 1501? Student Answer: $ 8‚800. $ 9‚600. $10‚300. $11‚100. Points Received: 5 of 5 Comments: Question 4. Question : Wall Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company’s estimated costs for the next year are:
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Traditional Costing Systems • Product Costs – Direct labor – Direct materials – Factory Overhead • Period Costs – Administrative expense – Sales expense Appear on the income statement when goods are sold‚ prior to that time they are stored on the balance sheet as inventory. Appear on the income statement in the period incurred. Traditional Costing Systems • Product Costs – Direct labor – Direct materials – Factory Overhead • Period Costs – Administrative expense – Sales expense Direct labor and direct
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collective overhead. The overhead and direct labor dollars for model years 1987 through 1990 is stated in Appendix A‚ as presented in the Harvard Business School 9-190-085 case study. For the 1987 model year‚ overhead was applied to the products as a percentage of direct labor cost for the production of the respective product. This overhead percentage was calculated “at budget time” and then applied throughout the 1987 production year. 2. TRENDS FOR MODEL YEARS The overhead and direct labor
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PROBLEM 2-21B Predetermined Overhead Rate; Disposition of Underapplied or Overapplied Overhead (LO1‚ LO7) CHECK FIGURE (2) Underapplied: $68‚600 Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours
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button. 1. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Division A Division B Actual machine hours 22‚500 17‚200 Estimated machine hours 20‚000 18‚000 Overhead application rate $4.50 $5.00 Actual overhead $110‚000 $92‚500 Estimated overhead $90‚000 $90‚000 Applied overhead $101‚250 $86‚000 Over- (under-) applied overhead $-8750 $6
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to labour and overhead. If the total dollar value of the ending inventory is $60‚000 and the cost per equivalent unit for labour and overhead is $8.00‚ what is the cost per equivalent unit for materials? A)$5.00. B)$10.00. C)$8.00. D)$4.00. 2.Black Company uses the weighted-average method in its process costing system. The company’s ending work-in-process inventory consists of 5‚000 units‚ 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total
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stores; however‚ they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line‚ which we know calls for an ABC system. The main reason to move to ABC though‚ would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds
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the following is the correct formula to compute the predetermined overhead rate? A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base.
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what conditions is direct labor a valid basis for allocating overhead? Direct labor is a valid basis for allocating overhead when: (a) direct labor constitutes a significant part of total product cost‚ and (b) there is a high correlation between direct labor and changes in the amount of overhead costs. 2. What has happened in recent industrial history to reduce the usefulness of direct labor as the library basis for allocating overhead to products? Recently in the industries‚ the amount of direct
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1. Unit based costing first assigns overhead costs to departmental pools and then assigns these costs to products using predetermined overhead rates. a. True b. False ANSWER: True 2. Management information systems can be divided into a unit-based type and activity-based type. a. True b. False ANSWER: True 3. Predetermined overhead rates are calculated at the end of each year using the formula: overhead rate = budgeted annual driver level/budgeted annual driver level. a. True b. False ANSWER:
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