Question

How to find estimated total amount of allocation base?

How to find estimated total amount of allocation base?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Small businesses that use job-order costing systems need to determine an allocation base to apply manufacturing overhead to jobs. Manufacturing overhead costs, those costs that are not directly traceable to products, can be a large portion of manufacturing expenses. Because of this, choosing an allocation base that closely mirrors how overhead costs are incurred on the production floor is crucial. Many companies choose direct labor hours to allocate costs, but this might not always be the best choice. Understanding some of the other options may reveal the best choice for your small business.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Job Order Costing Data Allocation base Machine-hours Estimated manufacturing overhead cost $300,000 Estimated total amount of...
Job Order Costing Data Allocation base Machine-hours Estimated manufacturing overhead cost $300,000 Estimated total amount of the allocation base 75,000 machine-hours Actual manufacturing overhead cost $290,000 Actual total amount of the allocation base 68,000 machine-hours Enter a formula into each of the cells marked with a ? below Computation of the predetermined overhead rate Estimated manufacturing overhead cost ? Estimated total amount of the allocation base ? machine-hours Predetermined overhead rate ? per machine-hour Computation of underapplied or overapplied manufacturing...
When calculating an allocation rate for estimated fixed production overhead cost, accountants, working with other managers,...
When calculating an allocation rate for estimated fixed production overhead cost, accountants, working with other managers, choose the A. Allocation base that minimizes total fixed production overhead B. Allocation base to use as the rate C. Allocation base to use as the numerator D. Allocation base to use as the denominator
1- How is calculated the estimated rate of allocation of overhead? 2- How is calculated the...
1- How is calculated the estimated rate of allocation of overhead? 2- How is calculated the actual rate of allocation of overhead?
Dimopoulos Pools manufactures swimming pool equipment. Estimated manufacturing Estimated quantity Predetermined Allocated overhead costs of allocation...
Dimopoulos Pools manufactures swimming pool equipment. Estimated manufacturing Estimated quantity Predetermined Allocated overhead costs of allocation base overhead rate overhead Direct labor hours $1,300,000 50,000 $26.00 per DL hour $1,357,200 Direct labor cost $1,300,000 $1,000,000 130% of DL cost $1,332,500 Machine hours $1,300,000 65,000 $20.00 per MH $1,276,000 Determine the total overallocation or underallocation of manufacturing overhead during the year in the following independent situations. Actual manufacturing costs for the year for Dimopoulos Pools totaled$1,325000. 1. Assume that the company...
Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the...
Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST. Direct material cost per unit of RST $ 28 Total estimated manufacturing overhead $ 326,000 Total cost per unit of RST $ 93 Total estimated machine hours 163,000 MH Direct labor cost per unit of RST $ 36 Multiple Choice 14.50 MH per unit of RST. 2.00 MH...
1. True or false. The main driver of indirect costs for service firms is usually labor...
1. True or false. The main driver of indirect costs for service firms is usually labor hours. 2. How do you calculate allocated manufacturing overhead to a certain job? a. By multiplying the total estimated manufacturing overhead by the total estimated allocation base to be used b. By multiplying the predetermined manufacturing overhead rate by the estimated allocation base to be used by the job c. By multiplying the estimated manufacturing overhead rate by the actual allocation base used by...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Estimated...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Estimated...
Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next...
Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 400,000 units are expected to be produced requiring 1.2 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Department 1 Department 2 Manufacturing overhead costs $ 2,530,000 $ 2,752,000 Direct labor hours 168,000 DLH 110,000 DLH Machine hours 30,000 MH 8,000 MH
Explain why it is unethical to manipulate the allocation base on a case-by-case basis in order...
Explain why it is unethical to manipulate the allocation base on a case-by-case basis in order to meet profitability targets. For example, changing the allocation base from machine hours instead of maintenance hours, even though maintenance hours have been used for years and are a better reflection of consumption of maintenance costs.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT