Question

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 overapplied


Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Particulars OMR
Estimated manufacturing overhead OMR        65,000
Estimated direct labor hours OMR        20,000

Predetermined overhead rate

(65000/20000)

 OMR            3.25
Actual direct labor hours OMR        22,000
Overhead applied OMR        71,500
Actual manufacturing overhead OMR        70,000
Overhead overapplied OMR          1,500

Hence option F is correct.

For any clarification, please comment. Kindly Up Vote!

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
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...
JD Corporation uses a job-order cost system and applies manufacturing overhead to jobs using a predetermined...
JD Corporation uses a job-order cost system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor dollars. The rate for the current year is 200 percent of direct labor dollars. This rate was calculated last November and will be used throughout the current year. During September, direct labor added co jobs was as follows: Job #1 Job #2 Job#3 Direct labor $1,000 $4,500 $2,000 Actual manufacturing overhead for the month of September was $17,500....
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...
Tomek Company uses a job costing system that applies factory overhead on the basis of direct...
Tomek Company uses a job costing system that applies factory overhead on the basis of direct labor hours. The company’s factory overhead budget for the current year included the following estimates: Budgeted total factory overhead $ 980,000 Budgeted total direct labor hours 70,000 At the end of the year, the company shows these results: Actual factory overhead $ 992,250 Actual direct labor hours 70,500 Required: 1. Compute the firm’s predetermined factory overhead rate for the current year. 2. Calculate the...
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours      30,500 Total fixed manufacturing overhead cost   $   610,000 Variable manufacturing overhead per machine-hour   $   6.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job      10 Total machine-hours      30 Direct materials   $   690 Direct labor cost   $   1,370...
Baxter Corp uses a normal job order costing system with manufacturing overhead applied to products on...
Baxter Corp uses a normal job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Baxter Corp estimated total manufacturing overhead cost at $480,000 and total direct labor hours of 40,000. During the year actual manufacturing overhead incurred was $462,500 and 41,000 direct labor hours were used. a. Calculate the predetermined overhead rate. b. Calculate how much manufacturing overhead will be applied to production. c. Is overhead over- or...
Chloe Corp uses a job order costing system with manufacturing overhead applied to products on the...
Chloe Corp uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Chloe Corp estimated total manufacturing overhead cost at $784,700 and total direct labor hours of 41,300. During the year actual manufacturing overhead incurred was $749,000 and 40,900 direct labor hours were used. (a) Calculate the predetermined overhead rate. (b) Calculate how much manufacturing overhead will be applied to production. (c) Is overhead over - or...
Walker Enterprises, Inc., uses a job-order costing system and sets a predetermined overhead rate at the...
Walker Enterprises, Inc., uses a job-order costing system and sets a predetermined overhead rate at the beginning of each year based on estimated manufacturing overhead costs and estimated direct labor-hours for the upcoming year. If the company sets its prices to cover actual direct materials costs, actual direct labor costs, and applied manufacturing overhead costs, will the company at least avoid a loss during the year?
Sneffy Company has a job-order costing system and uses a predetermined overhead rate based on direct...
Sneffy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 25,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,500 in direct labor. The labor rate is $5 per hour. By the end of the year, Sneffy had worked a total of 45,000...
1. Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using...
1. 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. At the end of the year, it was determined that the company actually worked 15,000 direct labor-hours for the year, and incurred $78,000 in actual manufacturing overhead costs. In June, Job #315 was completed. Materials costs on the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT