Question

XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current...

XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $600,000 based on an expected 50,000 direct labor hours to be worked, with direct laborers expected to be paid $6 per hour. For the current year, actual overhead costs totaled $620,000 and actual direct labor cost totaled $325,000. For the year, overhead was:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Total Labour cost
Labour hours 50000
labour rate per hour 6
Total Labour cost 300000
Pre-determined OH rate:
Total Overheads 600000
Divide: Ttotal Direct labour cost 300000
OH rate as % of DLC 200% of DLC
Overheads applied:
Direct labour cost of the year 325000
Multiply: OH rate as % of DLC 200%
Overheads applied: 650000
Overheads Under/ Over applied:
Overheads incurred 620000
Overheads applied 650000
Over-applied OH 30000
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
Johnson Company applies overhead to products using direct labor hours as the activity level. During 2019,...
Johnson Company applies overhead to products using direct labor hours as the activity level. During 2019, Johnson Company had the following estimated costs: Direct materials .................... $278,000 Direct labor ........................ 255,000 (15,000 hours expected) Advertising ......................... 37,000 Rent on factory building ............ 38,000 Depreciation .................... ... 60,000 Indirect materials .................. 20,000 Sales commissions ................... 40,000 Production supervisor's salary ...... 50,000 Insurance on factory equipment ...... 18,000 CEO's salary ........................ 95,000 The following additional information is available: 1. 30% of the...
XYZ industries applies overhead based on direct labor cost. The following information was available for the...
XYZ industries applies overhead based on direct labor cost. The following information was available for the last year: Actual manufacturing overhead OMR50,000; Underapplied manufacturing overhead OMR10,400; Actual Prime cost OMR52,000; Actual Direct material cost OMR19,000; Estimated direct labor cost OMR35,000. What was the estimated manufacturing overhead for the year? Select one: a. None of the answers given b. OMR39,600 c. OMR46,800 d. OMR44,400 e. OMR42,000
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:
Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined...
Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. Manufacturing overhead and direct labor hours were estimated at $66,000 and 22,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,923 and labor costs totaled $2,325 at $7.50 per hour (310 hours worked on this job). At the end of the year, it was determined that the company worked 23,975 direct...
Colby Company estimates that annual manufacturing overhead costs will be $600,000. Estimated annual operating activity bases...
Colby Company estimates that annual manufacturing overhead costs will be $600,000. Estimated annual operating activity bases are: direct labor cost $460,000, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $601,000 and the actual direct labor cost for the year was $456,000. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Colby applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing...
Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a...
Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. In June, Job #315 was completed. Materials costs on the job totaled $1,500 and labor costs totaled $2,400 at $6 per hour. At the end of the year, it was determined that the company worked 15,000 direct labor-hours for...
Johnson Company applies overhead to products using direct labor hours as the activity level. During 2019,...
Johnson Company applies overhead to products using direct labor hours as the activity level. During 2019, Johnson Company had the following estimated costs: Direct materials .................... $278,000 Direct labor ........................ 255,000 (15,000 hours expected) Advertising ......................... 37,000 Rent on factory building ............ 38,000 Depreciation .................... ... 60,000 Indirect materials .................. 20,000 Sales commissions ................... 40,000 Production supervisor's salary ...... 50,000 Insurance on factory equipment ...... 18,000 CEO's salary ........................ 95,000 The following additional information is available: 1. 30% of the...
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:
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT