Question

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

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :-

Option e) OMR42,000

.

Explanations :-

Applied Overhead = Actual Manufacturing Overhead of Last Year - Under applied Overhead

= OMR50,000 - OMR10,400

Applied Overhead = OMR39,600

.

Actual Direct Labor Cost = Actual Prime cost - Actual material cost

= OMR52,000 - OMR19,000

Actual Direct Labor Cost = OMR33,000

.

Overhead Applying rate = Applied overhead last year / Labour cost of last year

= OMR39,600 / OMR33,000

Overhead Applying rate = 1.20 or 120%

.

Estimated Direct Labor cost = OMR35,000

Estimated Manufacturing Overhead = Estimated Direct Labor cost × Overhead Applying rate

= OMR35,000 × 1.20

Estimated Manufacturing Overhead = OMR42,000

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
XYZ Company uses a job costing system and applies manufacturing overhead using a predetermined overhead rate...
XYZ Company uses a job costing system and applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. Information for the current year is as follows: Estimated manufacturing overhead OMR65,000; Actual manufacturing overhead OMR70,000; Estimated direct labor hours 20,000; Actual direct labor hours 22,000. The amount of over- or underapplied overhead for the year was Select one: a. OMR1,500 underapplied b. None of the answers given c. OMR5,500 overapplied d. OMR5,000 overapplied e. OMR5,000 underapplied f. OMR1,500...
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.
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:
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?
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
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....
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
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:
Knox applies overhead on the basis of 400% of direct labor cost. Job No. 176 is...
Knox applies overhead on the basis of 400% of direct labor cost. Job No. 176 is charged with $120,000 of direct material costs and $130,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is Select one: a. $282,500. b. $412,500. c. $250,000. d. $354,000. e. not able to be determined from the provided information.
A company uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead...
A company uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000. The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000. The manufacturing overhead for the year would be: A) $12,000 underapplied B) $12,000 overapplied C)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT