Question

Toronto Company applies overhead based on direct labor hours. At the beginning of 20x2, the company...

Toronto Company applies overhead based on direct labor hours. At the beginning of 20x2, the company estimateed that manufacturing overhead would be $500,000, and direct labor hours would total 50,000. By 20x2 year-end, actual overhead totaled $510,000, and actual direct labor hours were 45,000. On the basis of this information, the 20x2 over-or-underapplied overahead is:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Predetermined Overhead application rate = Estimated Manufacturing overhead / Estimated direct labour hours
Predetermined Overhead application rate = $500000/50000 direct labour hours = $10 per direct labour hour
Overhead applied in 20x2 = Actual direct labour hours * Predetermined overhead application rate
Overhead applied in 20x2 = 45000 hours * $10 = $4,50,000
The 20X2 Overhead underapplied = Actual overheads - Applied Overheads = $510000 - $450000 = $60,000
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
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?
Swifty Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor...
Swifty Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year as follows: Actual manufacturing overhead $167400 Estimated manufacturing overhead $159600 Direct labor incurred 2700 hours @ $25 = $67500 Direct labor estimated 2800 hours @ $24 = $67200 How much is over or underapplied overhead at year end? $7800 overapplied. $13500 underapplied. $5700 underapplied. $6200 underapplied.
Junior Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the...
Junior Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240,600 and 5,600 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,600 and actual direct labor-hours were 4,900. The overhead for the year was: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $32,096 overapplied $30,096 overapplied $32,096 underapplied $30,096 underapplied
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the...
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $243,300 and 8,300 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $244,400 and actual direct labor-hours were 5,800. The overhead for the year was: (Round your intermediate calculations to 2 decimal places.) A. $74,402 overapplied B. $74,402 underapplied C. $73,302 overapplied D. $73,302 underapplied
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...
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the...
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $244,200 and 9,200 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $245,000 and actual direct labor-hours were 6,100. The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.) Garrison 16e Rechecks 2017-08-28 Multiple Choice $162,443 $161,894 $305,366 $244,976
The Love Corporation applies overhead to work in process based on direct labor hours. Love estimates...
The Love Corporation applies overhead to work in process based on direct labor hours. Love estimates manufacturing overhead for the following period to be $600,000 and labor hours to total 30,000. If actual manufacturing overhead is $620,000 and actual labor hours total 30,600, manufacturing overhead is: $8,000 underapplied. $12,000 overapplied. $12,156 underapplied. $20,000 overapplied. Show your calculations:
Nguyen Inc. applies overhead to products based on direct labor hours using normal costing. During 2016,...
Nguyen Inc. applies overhead to products based on direct labor hours using normal costing. During 2016, total overhead costs were estimated to be $500,000. Actual overhead totaled $540,000 based on 32,000 actual direct labor hours. At the end of the year, overhead was overapplied by $20,000. Based on this information, what was the predetermined overhead rate used during 2016? $16.88 per direct labor hour. $16.25 per direct labor hour. $15.63 per direct labor hour. $17.50 per direct labor hour. None...
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year,...
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: $1,840 underapplied $6,840 overapplied $6,840 underapplied $1,840 overapplied
Erik's Florist Gump Company based in New york applies manufacturing overhead on the basis of direct...
Erik's Florist Gump Company based in New york applies manufacturing overhead on the basis of direct labor-hours. At the beginning of 2019, the company based its predetermined overhead rate on total estimated overhead of $242,100 and 7,100 estimated direct labor-hours. Actual manufacturing overhead for the 2019-2020 year amounted to $243,600 and the actual direct labor-hours were 5,400 Erik's Florist Gump Company applied manufacturing overhead for the 2019 year was closest to: (Round your intermediate calculations to 2 decimal places.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT