Scribd Logo
Carica

Benvenuto in Scribd!

  • CH 02

    Caricato da

    Deepshikha Goel
    45 visualizzazioni3 pagine
    Solved Financial Questions Simmons estimates that 40,000 direct labor and 64,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, what will be the overhead rate per hour? Houghton Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and direct labor hours would be 20,000. The actual figures for the year were $220,000 for manufacturing overhead and 21,000 direct labor hours. What will the cost records for the year show? Kasper Company’s predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company estimated that its manufacturing overhead would total $440,000 during the year. During the year, the company incurred $400,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was overapplied by $16,000 during the year. If the predetermined overhead rate was $20.00 per direct labor hour, how many hours were worked during the year? Under Horton Company's job-order costing system, manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate. During July, Horton’s transactions included the following:

    Titolo originale

    ch02

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Formati disponibili

    DOC, PDF, TXT o leggi online da Scribd

    Hai trovato utile questo documento?

    Questo contenuto è inappropriato?

    Segnala questo documento
    Solved Financial Questions Simmons estimates that 40,000 direct labor and 64,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, what will be the overhead rate per hour? Houghton Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and direct labor hours would be 20,000. The actual figures for the year were $220,000 for manufacturing overhead and 21,000 direct labor hours. What will the cost records for the year show? Kasper Company’s predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company estimated that its manufacturing overhead would total $440,000 during the year. During the year, the company incurred $400,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was overapplied by $16,000 during the year. If the predetermined overhead rate was $20.00 per direct labor hour, how many hours were worked during the year? Under Horton Company's job-order costing system, manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate. During July, Horton’s transactions included the following:

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato DOC, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    45 visualizzazioni3 pagine

    CH 02

    Caricato da

    Deepshikha Goel
    Solved Financial Questions Simmons estimates that 40,000 direct labor and 64,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, what will be the overhead rate per hour? Houghton Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and direct labor hours would be 20,000. The actual figures for the year were $220,000 for manufacturing overhead and 21,000 direct labor hours. What will the cost records for the year show? Kasper Company’s predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company estimated that its manufacturing overhead would total $440,000 during the year. During the year, the company incurred $400,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was overapplied by $16,000 during the year. If the predetermined overhead rate was $20.00 per direct labor hour, how many hours were worked during the year? Under Horton Company's job-order costing system, manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate. During July, Horton’s transactions included the following:

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato DOC, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 3

    Folk Exam Questions - Chapter 2 1.

    Simmons Company has the following estimated costs for next year: Direct materials Direct labor Sales commissions Salary of prod"ction s"per#isor %ndirect materials &d#ertising expense 'ent on factory e("ipment $ 60,000 0,000 !00,000 1$0,000 0,000 $$,000 6$,000

    Simmons estimates that $0,000 direct labor and 6$,000 machine ho"rs will be wor)ed d"ring the year. %f o#erhead is applied on the basis of machine ho"rs, what will be the o#erhead rate per ho"r* Solution: Salary of prod"ction s"per#isor %ndirect materials 'ent on factory e("ipment +stimated man"fact"ring o#erhead costs +stimated machine ho"rs ,redetermined o#erhead rate $1$0,000 0,000 6$,000 $,000 6$,000 $!.-0 per ./

    . /o"ghton Company "ses a predetermined o#erhead rate based on direct labor ho"rs to apply man"fact"ring o#erhead to 0obs. &t the beginning of the year, the company estimated man"fact"ring o#erhead wo"ld be $ 00,000 and direct labor ho"rs wo"ld be 0,000. 1he act"al fig"res for the year were $ 0,000 for man"fact"ring o#erhead and 1,000 direct labor ho"rs. 2hat will the cost records for the year show* Solution: 3irst, calc"late the predetermined o#erhead rate 4based on direct labor ho"rs here5: +stimated o#erhead costs +stimated direct labor ho"rs 6 ,redetermined rate $ 00,000 0,000 direct labor ho"rs 6 $10.007direct labor ho"r 1hen, determine the amo"nt of man"fact"ring o#erhead assigned d"ring the period: ,redetermined o#erhead rate x &ct"al direct labor ho"rs 6 8#erhead assigned $10.007direct labor ho"r x 1,000 direct labor ho"rs 6 $ 10,000 3inally, compare the act"al man"fact"ring o#erhead costs to the amo"nt assigned, and decide whether it is o#er9 or "nderapplied: &ct"al $ 0,000

    &ssigned :alance 4"nderapplied5

    10,000 $ 10,000

    !. ;asper Company<s predetermined o#erhead rate is based on direct labor ho"rs. &t the beginning of the c"rrent year, the company estimated that its man"fact"ring o#erhead wo"ld total $$$0,000 d"ring the year. D"ring the year, the company inc"rred $$00,000 in act"al man"fact"ring o#erhead costs. 1he .an"fact"ring 8#erhead acco"nt showed that o#erhead was o#erapplied by $16,000 d"ring the year. %f the predetermined o#erhead rate was $ 0.00 per direct labor ho"r, how many ho"rs were wor)ed d"ring the year* Solution: 3irst, determine the amo"nt of o#erhead applied to prod"ction by reference to the information abo"t the .an"fact"ring 8#erhead acco"nt: &ct"al o#erhead = &mo"nt applied to prod"ction 6 &mo"nt o#er9 4"nder5applied $$00,000 = &mo"nt applied to prod"ction 6 $16,000 &mo"nt assigned to prod"ction 6 $!>$,000 1hen, sol#e for the direct labor ho"rs here 4the acti#ity base for the o#erhead rate5: ,redetermined o#erhead rate x Direct labor ho"rs 6 .an"fact"ring o#erhead applied $ 0.007direct labor ho"r x &ct"al direct labor ho"rs 6 $!>$,000 4from abo#e5 &ct"al direct labor ho"rs 6 1?, 00 $. @nder /orton CompanyAs 0ob9order costing system, man"fact"ring o#erhead is applied to 2or) in ,rocess in#entory "sing a predetermined o#erhead rate. D"ring B"ly, /orton<s transactions incl"ded the following: Direct labor cost inc"rred Direct materials iss"ed to prod"ction %ndirect materials iss"ed to prod"ction .an"fact"ring o#erhead cost applied .an"fact"ring o#erhead cost inc"rred $$ >,000 !60,000 ! ,000 $- ,000 -00,000

    /orton Company had no beginning or ending in#entories in B"ly. 2hat was the cost of goods man"fact"red for B"ly* Solution: 2or) in process, beginning of period Direct materials iss"ed to prod"ction Direct labor cost inc"rred .an"fact"ring o#erhead cost applied 1otal man"fact"ring costs $ 0 !60,000 $ >,000 $- ,000 1, $0,000

    Cess: wor) in process, end of period Cost of goods man"fact"red

    405 $1, $0,000

    Potrebbero piacerti anche