Question

Summer 20 Corp estimates overhead based on direct labor hours and has given you the following...

Summer 20 Corp estimates overhead based on direct labor hours and has given you the following information:

Estimated Manufacturing Overhead Costs 2020 $500,000
Estimated Direct Labor Hours for 2020 220,000
Actual Direct Labor Hours for 2020 202,000
Manufacturing Overhead Account Debit Entries total $450,000

1. Determine the predetermined overhead allocation rate.

2. Determine the amount of manufacturing overhead that were allocated.

3. Calculate the amount Summer 20 Corp is over or under allocated during the year. (Be sure to specify over or under allocated along with the dollar value.)

Homework Answers

Answer #1

Answer to the above question is shown.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Summer 20 Corp estimates overhead based on direct labor hours and has given you the following...
Summer 20 Corp estimates overhead based on direct labor hours and has given you the following information: Estimated Manufacturing Overhead Costs 2020 $500,000 Estimated Direct Labor Hours for 2020 220,000 Actual Direct Labor Hours for 2020 202,000 Manufacturing Overhead Account Debit Entries total $450,000 1. Determine the predetermined overhead allocation rate. 2. Determine the amount of manufacturing overhead that were allocated. 3. Calculate the amount Summer 20 Corp is over or under allocated during the year. (Be sure to specify...
Bear Corp. estimates that it will require 140,000 direct labor-hours to meet the coming period’s estimated...
Bear Corp. estimates that it will require 140,000 direct labor-hours to meet the coming period’s estimated production level. In addition, the company estimates total fixed manufacturing overhead at $250,000, and variablemanufacturing overhead costs of $3.25 per direct labor hour. What is the Predetermined Overhead Rate for Bear Corp.?
QUESTION 1 DeLima Enterprise using direct labor hours as basis for calculating predetermined overhead rate. 1...
QUESTION 1 DeLima Enterprise using direct labor hours as basis for calculating predetermined overhead rate. 1 January 2020, estimated total manufacturing overhead cost is RM165,600. Information for 31 December 2020 are as followed: Total actual direct labor hours 11,900 hours Total actual manufacturing overhead cost RM160,600 Manufacturing overhead cost overapplied RM10,760 Required: Calculate predetermined overhead rate for 2020 : QUESTION 2 By 2020, predetermined overhead rate for Merbok Company is RM80 per machine hours. At the beginning of year 2020,...
2. Sigma Corporation estimates its plantwide predetermined overhead rate annually on the basis of direct labor-hours....
2. Sigma Corporation estimates its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $559,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Sigma’s actual manufacturing overhead cost for the year was $758,696 and its actual total direct labor was 34,500 hours....
Your Company uses a predetermined overhead rate based on direct labor cost. The POR is 80%...
Your Company uses a predetermined overhead rate based on direct labor cost. The POR is 80% of direct labor costs. Use the following information to determine by how much the manufacturing overhead cost for the current year will be over or under applied.                     Direct labor-hours: Estimated for the year................ 24,000 Actual hours worked.................. 19,500 Direct labor cost: Estimated for the year................ $300,000 Actual cost incurred................... $210,000 Manufacturing overhead: Estimated for the year................ $240,000 Actual cost incurred................... $185,000 The manufacturing overhead...
Cavy Company estimates that total factory overhead costs will be $733,460 for the year. Direct labor...
Cavy Company estimates that total factory overhead costs will be $733,460 for the year. Direct labor hours are estimated to be 91,000. Required: (a) Determine the: (1) Predetermined factory overhead rate (2) Amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and Job 999 if the amount of direct labor hours is 2,900 (b) Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. Refer to...
Cavy Company estimates that total factory overhead costs will be $733,460 for the year. Direct labor...
Cavy Company estimates that total factory overhead costs will be $733,460 for the year. Direct labor hours are estimated to be 91,000. Required: Determine (a) the predetermined factory overhead rate; (b) the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and Job 999 if the amount of direct labor hours is 2,900; and (c) prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. Refer...
The manufacturing overhead budget at Lamy Corporation is based on budgeted direct labor-hours. The direct labor...
The manufacturing overhead budget at Lamy Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $132,770 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be: August Budgeted...
The predetermined overhead allocation rate for Newton, Inc., is based on estimated direct labor costs of...
The predetermined overhead allocation rate for Newton, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $800,000. Actual costs incurred were: Indirect materials…………………………….. $17,000 Indirect labor………………………………….. 13,000 Direct materials…………………………… 75,000 Direct labor……………………………….. 30,000 Advertising…………………………. 50,000 Factory depreciation………………………… 17,000 Factory Property taxes……………………...   12,000 Sales Commissions ………………………………..... 100,500 (a)    Calculate the predetermined overhead rate and calculate the overhead applied during the year. (b)   Determine the amount of over- or underapplied overhead and state whether it was under or...
Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that total...
Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 250,000 hours. The estimated variable overhead is OMR7 per hour and the estimated fixed overhead costs are OMR750,000. Calculate the predetermined overhead rate. Select one: a. OMR3.00 b. OMR11.00 c. None of the answers given d. OMR0.10 e. OMR10.00 CLEAR MY CHOICE