Question

5. Lister Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied...

5. Lister Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just-completed year: Estimated total manufacturing overhead at the beginning of the year $624,000 Estimated direct labor-hours at the beginning of the year 39,000direct labor-hours Results of operations: Actual direct labor-hours 36,000direct labor-hours Manufacturing Overhead: Indirect labor cost $131,000 Other manufacturing overhead costs incurred $543,000

The total amount of manufacturing overhead applied to production is:

A) $1,547,000

B) $576,000

C) $624,000

D) $674,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Estimated total manufacturing overhead = $624,000

Estimated direct labour hours = 39,000 hours

Lister actual direct labour hours = 36,000 hours

Lister use direct labour hours as allocation base

Predetermined overhead rate

= estimated total manufacturing overhead / estimated total allocation base

Predetermined overhead rate

= 624,000 / 39,000 = $16

Overhead applied = Actual direct labour hours × predetermined overhead rate

Overhead applied = 36,000 × 16 = $576,000

The total amount of manufacturing overhead applied is $576,000.

Correct option B $576,000

Actual manufacturing overhead is not required to calculate manufacturing overhead applied.

If YOU are like the answer please upvote.

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
Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or...
Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Beginning inventories: Finished goods $ 30,000 Estimated total manufacturing overhead at the beginning of the year $ 568,000 Estimated direct labor-hours at the beginning of the year 32,000 direct labor-hours Results of operations: Raw materials (all direct) requisitioned for...
Plasencia Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or...
Plasencia Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Beginning inventories: Finished goods $ 33,000 Estimated total manufacturing overhead at the beginning of the year $ 635,500 Estimated direct labor-hours at the beginning of the year 41,000 direct labor-hours Results of operations: Actual direct labor-hours 42,000 direct labor-hours...
Ali Corporation is a manufacturer that uses job-order costing. The company closes out any over-applied or...
Ali Corporation is a manufacturer that uses job-order costing. The company closes out any over-applied or under-applied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Beginning inventories: Finished goods $ 33,000 Estimated total manufacturing overhead at the beginning of the year $ 635,500 Estimated direct labor-hours at the beginning of the year 41,000 direct labor-hours Results of operations: Actual direct labor-hours 42,000 direct labor-hours...
Villanova Corporation is a diversified manufacturer of industrial goods that uses a job-order costing system. The...
Villanova Corporation is a diversified manufacturer of industrial goods that uses a job-order costing system. The company utilizes a predetermined overhead rate of $30 per machine-hour. Manufacturing overhead cost was applied to production on the basis of 18,000 machine-hours actually worked during 2019. Cost data have been supplied for the manufacturing activities during 2019: Inventories: Raw materials, beginning $10,000 Raw materials, ending $60,000 Work in process, beginning $50,000 Work in process, ending $60,000 Manufacturing overhead costs incurred: Indirect materials $...
Villanova Corporation is a diversified manufacturer of industrial goods that uses a job-order costing system. The...
Villanova Corporation is a diversified manufacturer of industrial goods that uses a job-order costing system. The company utilizes a predetermined overhead rate of $30 per machine-hour. Manufacturing overhead cost was applied to production on the basis of 18,000 machine-hours actually worked during 2019. Cost data have been supplied for the manufacturing activities during 2019: Inventories: Raw materials, beginning $10,000 Raw materials, ending $60,000 Work in process, beginning $50,000 Work in process, ending $60,000 Manufacturing overhead costs incurred: Indirect materials $...
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance Ending Balance Raw materials $ 14,600 $ 22,600 Work in process $ 27,600 $ 9,600 Finished Goods $ 62,600 $ 77,600 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,600 machine-hours and incur $275,520...
Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed...
Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company has provided the following data for August: Direct materials $ 66,500 Direct labor cost S 93,000 Manufacturing overhead cost incurred $ 60,800 Manufacturing overhead cost applied $ 65,100 Inventories: Beginning Ending Work in process $16,000 $18,200 Finished goods $56,200 $36,000 The cost of goods sold that appears on the income...
1. Job-Order Costing : At the beginning of the year, Creative, Inc. computed its overhead rate...
1. Job-Order Costing : At the beginning of the year, Creative, Inc. computed its overhead rate based on $180,000 of estimated total manufacturing overhead costs for an estimated activity level of 12,000 direct labor-hours. During the year, the company incurred actual manufacturing overhead costs of $195,000 and 9,500 total direct labor-hours. a. What is the company’s predetermined overhead rate? b. What is the amount of manufacturing overhead applied by the company for the period? c. What is the amount of...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.80 per machine-hour was based on a cost formula that estimates $232,400 of total manufacturing overhead for an estimated activity level of 83,000 machine-hours. Required: 1. Assume that during the year the company works only 78,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead...
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct...
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories:     Materials $24,000     Work-in-process (All Job X) 53,400     Finished goods 105,600 Materials purchases $157,000 Direct materials requisitioned:     Job...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT