Question

The following data is provided for ABC company budgeted overhead for the year is $400,000 projected...

The following data is provided for ABC company

budgeted overhead for the year is $400,000

projected direct labor cost for the year -$100,000

eduring tstimated machine hours for the year -20,000

estimated direct labor hours for the year -20,000

overhead is applied to product based on direct labor costs,

during the month of june the company incurred 3000 labor hours used 2500 machine hours incurred #30,000 of labor costs and $75,000 of overhead cost

calculate

a. the overhead cost

b. the amount of overhead applied in june

c, the over or underapplied overhead for june and explain what it means

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Budgeted Overhead = $400,000
projected direct labor cost 100000
Estimated MHRS 20000 hrs
Estimed DL hrs 20000 hrs
a) Actual Overhead Cost = $75000
b) Amount of applied overhead
Predetermined Overhead rate per labour hr = Budgeted Overhead/Estimated DL Hrs
= $400000/20000 hrs
$20 per DL hr
Applied Overhead= Actual DL hrs worked*Predetermined overhead rate
= 3000 hrs * $20
$ 60,000.00
c) Actual Overhead 75000
Applied Overhead 60000
Underapplied Overhead 15000
This means, the appliedoverhead is less than the actual overhead incurred by thecompay
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
Sutherland Company listed the following data for 2019: Budgeted factory overhead $2,223,000 Budgeted direct labor hours...
Sutherland Company listed the following data for 2019: Budgeted factory overhead $2,223,000 Budgeted direct labor hours 90,000 Budgeted machine hours 50,000 Actual factory overhead 2,201,800 Actual direct labor hours 84,500 Actual machine hours 45,400 If overhead is applied based on machine hours, the overapplied/underapplied overhead is (round calculations to 2 significant digits):
ABC Manufacturing uses normal costing and allocates manufacturing overhead to jobs based on a budgeted direct...
ABC Manufacturing uses normal costing and allocates manufacturing overhead to jobs based on a budgeted direct labor-hour rate for the actual direct labor hours. Any overallocated or underallocated overhead is written-off to the cost of goods sold at the end of the month. During April 2019, ABC Manufacturing recorded the following: Budgeted manufacturing overhead costs: $400,000 Budgeted direct labor-hours: 20,000 DLHRS Budgeted machine hours: 16,000 MHRS Actual manufacturing overhead costs: $360,000 Actual direct labor-hours:   22,500 DLHRS Actual machine hours: 15,000...
PROBLEM: 1 (MUST SHOW CALCULATIONS; NO CALCULATIONS NO CREDIT) BUDGETED DATA: Budgeted machine hours                         &nbs
PROBLEM: 1 (MUST SHOW CALCULATIONS; NO CALCULATIONS NO CREDIT) BUDGETED DATA: Budgeted machine hours                                                              60,000 machine hours Budgeted direct labor hours                                                        400,000 direct labor hours Budgeted direct labor costs                                                         $6,000,000 Budgeted manufacturing overhead costs                              $10,000,000 Company allocates manufacturing overhead using direct labor hours used ACTUAL DATA: Actual manufacturing overhead costs incurred                    $9,700,000 Actual machine hours used                                                          62,000 machine hrs used Actual direct labor hours used                                                    380,000 actual DL hours used Calculate budgeted (applied) manufacturing overhead rate per direct labor hour...
ackson Inc. listed the following data for 2016: Budgeted factory overhead $1,271,000 Budgeted direct labor hours...
ackson Inc. listed the following data for 2016: Budgeted factory overhead $1,271,000 Budgeted direct labor hours 82,000 Budgeted machine hours 41,000 Actual factory overhead 1,201,000 Actual direct labor hours 86,300 Actual machine hours 39,400 Round calculations to 2 significant digits If overhead is applied based on direct labor hours, overapplied/underapplied overhead is: $136,650 overapplied. $136,650 underapplied. $174,775 underapplied. $174,775 overapplied. $-0-. Sutherland Company listed the following data for 2016: Budgeted factory overhead $2,100,000 Budgeted direct labor hours 89,000 Budgeted machine...
The following information is provided by the Donatella Corporation for the year: The actual overhead rate...
The following information is provided by the Donatella Corporation for the year: The actual overhead rate for applying manufacturing overhead is Actual direct labor hours worked 46,000 Budgeted overhead $300,000 Budgeted direct labor hours 30,000 Actual overhead costs incurred $460,000 I think I need a per unit or per hour cost?
XYZ Company had the following information: Budgeted overhead                                &nb
XYZ Company had the following information: Budgeted overhead                                         $75,000 Actual overhead                                              $80,000 Budgeted Direct-labor hours                          20,000 Ending balances in the following accounts: Ending Balance Actual DLH in Ending Balance Raw Materials Inventory $ 40,000 0 Work In Process Inventory $ 30,000 2,100 Finished Goods Inventory $ 60,000 8,400 Cost of Goods Sold $210,000 10,500 If 21,000 direct labor hours are used, calculate the amount of allocated manufacturing overhead. By how much is XYZ’s manufacturing overhead under or over applied? Be...
ABC Company estimates the following at the beginning of the year: Estimated direct labor hours                          &nbsp
ABC Company estimates the following at the beginning of the year: Estimated direct labor hours                                                                  25,000 hours Estimated fixed manufacturing overhead                                           $40,000 Estimated variable manufacturing overhead per direct labor hour $3 During 20x4 ABC Company actually incurred $100,000 in manufacturing overhead, and used 22,000 in direct labor hours. Calculate the amount of overapplied or underapplied manufacturing overhead for the period. a.) 13,800 overapplied b.) 1,200 overapplied c.) 1,200 underapplied d.) 13,800 underapplied
Estimated cost and operating data for the forthcoming period for three companies are given below:                           
Estimated cost and operating data for the forthcoming period for three companies are given below:                                                        Company A                   Company B                  Company C Direct labor hours                                   12,000                          15,000                          20,000 Manufacturing overhead                        $90,000                      $120,000                      $150,000 Machine hours                                        20,000                          20,000                          25,000 Direct labor cost                                    $60,000                       $ 75,000                      $100,000 Predetermined OH                          Direct Labor                  Direct Labor                       Machine rates are based on                                  hours                              cost                            hours Required: 1.         Compute the predetermined overhead rate to be used in the forthcoming period for each company. 2.         Assume for Company B that $80,000 of direct labor cost actually is incurred.  How much overhead will be applied to work in process? 3.         Assume for Company C...
Elevated Expectations Company projected the following overhead costs and cost drivers for past year (assume that...
Elevated Expectations Company projected the following overhead costs and cost drivers for past year (assume that actual overhead and budgeted overhead were the same): Overhead Item Expected Costs Cost Driver Expected Quantity Setup costs $12,150 Number of setups 50 Ordering costs 4,050 Number of orders 30 Maintenance 17,400 Machine-hours 600 Power 3,000 Kilowatt-hours 600 Direct Labor Hours 500 Elevated Expectations contracted for 2 jobs, both of which were completed during the year. Production managers reported the following data in relation...
1.Overapplied overhead will always result when a predetermined overhead rate is employed and _______ a.production is...
1.Overapplied overhead will always result when a predetermined overhead rate is employed and _______ a.production is less than ideal capacity. b.actual overhead costs are less than expected. c.actual overhead costs are more than expected. d.overhead incurred is less than overhead applied. e.None of the above 2. Wilkes Manufacturing adopted a job costing system. For the current year, budgeted cost driver activity levels for direct labor hours and direct labor costs were 20,000 and $100,000, respectively. In addition, budgeted variable and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT