Question

Discuss the reason why companies use predetermined (factory) overhead rates rather than actual manufacturing overhead costs...

  1. Discuss the reason why companies use predetermined (factory) overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? What purpose does that serve?
  2. List three companies, businesses, or firms that would use a job-order costing system. Name the company and the product.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Discuss the reason why companies use predetermined (factory) overhead rates rather than actual manufacturing overhead costs...
Discuss the reason why companies use predetermined (factory) overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? What purpose does that serve?
Why do companies use pre-determined overhead rates rather than actual manufacturing overhead cost to apply overhead...
Why do companies use pre-determined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs?
1.A process cost system and a job order cost system both use a predetermined overhead rate...
1.A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process. true or false 2. Under job-order costing, the actual direct material, actual direct labor, and estimated overhead costs are recorded on the job cost sheet. true or false 3. In a job-order cost system, the inventory accounts generally are maintained on a perpetual basis. true or false 4. Process costing is used for products...
5) If factory overhead applied exceeds the actual costs, the factory overhead              T        F         &nbsp
5) If factory overhead applied exceeds the actual costs, the factory overhead              T        F                    account will have a credit balance.          6) The direct materials costs and direct labor costs incurred by a production                T         F               department are referred to as conversion costs. 7) Generally accepted accounting principles require companies to use only                  T         F             one factory overhead rate for product costing. 8) The document that serves as the basis for recording direct labor on a job                   T    ...
A job-order costing system that relies on normal costing will: Multiple Choice Assign actual direct materials...
A job-order costing system that relies on normal costing will: Multiple Choice Assign actual direct materials and direct labor costs to jobs. Apply overhead cost to jobs by multiplying an actual overhead rate by the estimated amount of the allocation base incurred by the jobs. Apply overhead cost to jobs by multiplying an actual overhead rate by the actual amount of the allocation base incurred by the jobs. Apply overhead cost to jobs by multiplying a predetermined overhead rate by...
Actual and Predetermined Overhead Rates Raceway Engines, which builds high performance auto engines for race cars,...
Actual and Predetermined Overhead Rates Raceway Engines, which builds high performance auto engines for race cars, started operations on January 1, 2017. During the month, the following events occurred: • Materials costing $7,000 were purchased on account. • Direct materials costing $5,000 were placed in process. • A total of 390 direct labor hours was charged to individual jobs at a rate of $15 per hour. • Overhead costs for the month of January were as follows: Depreciation on building...
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...
E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied Overhead Costs [LO...
E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied Overhead Costs [LO 2-3, 2-4, 2-5, 2-6] Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $193,000. Estimated direct labor cost was $478,640 for 19,300 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct...
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)...
Kelly Manufacturing established predetermined overhead rate using the cost predictions: overhead costs, $680,000, and direct materials...
Kelly Manufacturing established predetermined overhead rate using the cost predictions: overhead costs, $680,000, and direct materials costs, $425,000. At year-end, the company's records show that actual overhead costs for the year are $1,050,000. Actual direct materials costs had been assigned to jobs as follows. Jobs completed and sold $207,000 Jobs in finished goods inventory 102,750 Jobs in work in process inventory 195,250 Total actual direct materials cost $505,000 1. Determine the predetermined overhead rate using predicted direct materials costs. Round...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT