Question

TION 32 Bite Size Cupcakes applies factory overhead based on direct material costs. The company incurred...

TION 32

  1. Bite Size Cupcakes applies factory overhead based on direct material costs. The company incurred the following costs during the year: direct materials costs of $625,000, direct labor costs $350,000; and factory overhead costs applied of $210,000.  Using these facts answer the questions that follow.

  2. what is the overhead rate for the year?

  3. Assuming the company's $41,000 ending Work in Process inventory account for the year had $20,000 of direct material costs, determine the amount of direct labor costs.  

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A) The overhead rate for the year is calculated below:

The overhead rate for the year = Total overhead cost/Total Direct Labor Cost*100

= $210,000/$350,000*100

= 60%

The overhead rate for the year = 60%

B)The amount of direct labor costs is calculated below:

$
Ending Work in Process inventory account 41,000
Less: Direct Material Cost (20,000)
Direct labor and overhead Cost 21,000

So direct Direct labor Cost =  21,000 /160*100

= $131,25

So the amount of direct Direct labor Cost is $131,25

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
Red Wing Company applies factory overhead based on direct labor costs. The company incurred the following...
Red Wing Company applies factory overhead based on direct labor costs. The company incurred the following costs during 2011: direct materials costs, $637,500; direct labor costs, $2,500,000; and factory overhead costs applied, $1,000,000. 1. Determine the company’s predetermined overhead rate for year 2011. (Omit the "%" sign in your response.)   Predetermined overhead rate % 2. Assuming that the company’s $57,000 ending Goods in Process Inventory account for year 2011 had $18,000 of direct labor costs, determine the inventory’s direct materials...
Mountain Snow Manufacturing applies factory overhead at a rate of 125% of direct labor. In the...
Mountain Snow Manufacturing applies factory overhead at a rate of 125% of direct labor. In the month of May, the company used $250,000 of direct materials and $200,000 in direct labor for the period. Mountain Snow Manufacturing incurred actual factory overhead cost of $350,000. Is the Factory Overhead account over or under stated? Record the journal entries necessary for only applying applied overhead for the period and the adjustment of the overhead account for the month of May. (13 points)...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $420,597 and direct labor hours would be 46,733. Actual factory overhead costs incurred were $439,569, and actual direct labor hours were 50,876. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $628,200 and direct labor hours would be 34,900. Actual manufacturing overhead costs incurred were $454,000, and actual direct labor hours were 22,700. The entry to apply the factory overhead costs for the year would include a a.credit to Factory Overhead for $408,600 b.debit to Factory Overhead for $454,000 c.debit to Factory Overhead for $408,600 d.credit...
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for...
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $113,500 and $125,100, respectively. During the year, actual overhead was $107,500 and actual direct labor cost was $119,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include (Round predetermined overhead rate to nearest whole percentage.) Multiple Choice A debit to Work in Process Inventory for $790. A credit to Factory Overhead for $790....
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated...
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $456,000, and direct labor costs to be $2,280,000. Actual overhead costs for the year totaled $422,000, and actual direct labor costs totaled $1,940,000. At year-end, the balance in the Factory Overhead account is a:
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated...
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $456,000, and direct labor costs to be $2,280,000. Actual overhead costs for the year totaled $422,000, and actual direct labor costs totaled $1,940,000. At year-end, the balance in the Factory Overhead account is a:
Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job...
Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job 316 was started in July and incurred the following costs in July: Direct materials $950 Direct labor $1,050 Applied overhead $1,260 The job was completed in August with an additional $2,100 in direct material cost and $1,400 in additional direct labor cost. What was the total cost of Job 316 at the end of August?
The predetermined overhead allocation rate for Newton, Inc., is based on estimated direct labor costs of...
The predetermined overhead allocation rate for Newton, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $800,000. Actual costs incurred were: Indirect materials…………………………….. $17,000 Indirect labor………………………………….. 13,000 Direct materials…………………………… 75,000 Direct labor……………………………….. 30,000 Advertising…………………………. 50,000 Factory depreciation………………………… 17,000 Factory Property taxes……………………...   12,000 Sales Commissions ………………………………..... 100,500 (a)    Calculate the predetermined overhead rate and calculate the overhead applied during the year. (b)   Determine the amount of over- or underapplied overhead and state whether it was under or...
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated...
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $472,000, and direct labor costs to be $2,360,000. Actual overhead costs for the year totaled $434,000, and actual direct labor costs totaled $1,980,000. At year-end, the balance in the Factory Overhead account is a: $396,000 Debit balance. $472,000 Credit balance. $38,000 Debit balance. $434,000 Debit balance. $38,000 Credit balance. 2. Mesa Corp. allocates overhead to production on the basis...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT