Question

Peterson Company estimates that overhead costs for the next year will be $6,520,000 for indirect labor...

Peterson Company estimates that overhead costs for the next year will be $6,520,000 for indirect labor and $550,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 140,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?

Select one:

a. $.02147 per machine hour.

b. $50.50 per machine hour.

c. $45.75 per machine hour.

d. $3.9286 per machine hour.

e. $.2545 per machine hour.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Estimated Indirect Labor = $6,520,000
Estimated Factory Utilities = $550,000

Estimated Manufacturing Overhead = Estimated Indirect Labor + Estimated Factory Utilities
Estimated Manufacturing Overhead = $6,520,000 + $550,000
Estimated Manufacturing Overhead = $7,070,000

Expected Machine-hours = 140,000

Plantwide Overhear Rate = Estimated Manufacturing Overhead / Expected Machine-hours
Plantwide Overhear Rate = $7,070,000 / 140,000
Plantwide Overhear Rate = $50.50 per machine-hour

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
Q1) FalmouthFalmouth Pools manufactures swimming pool equipment. FalmouthFalmouth estimates total manufacturing overhead costs next year to...
Q1) FalmouthFalmouth Pools manufactures swimming pool equipment. FalmouthFalmouth estimates total manufacturing overhead costs next year to be $2,500,000. FalmouthFalmouth also estimates it will use $37,500 direct labor hours and incur $1,200,000 of direct labor cost next year. In? addition, the machines are expected to be run for 30,000 hours. Compute the predetermined manufacturing overhead rate for next year under the following independent? situations: 1. Assume that the company uses direct labor hours as its manufacturing overhead allocation base. 2. Assume...
A company uses activity-based costing to determine the costs of its three products: A, B, and...
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 75,000 6,500 9,500 20,500 Activity 2 $ 50,000 7,500 15,500 8,500 Activity 3 $ 92,000 3,000 1,500 2,125 How much overhead will be assigned to Product B...
Part IV. Predetermined Overhead            Cranston Company estimates the following overhead costs for the coming year:...
Part IV. Predetermined Overhead            Cranston Company estimates the following overhead costs for the coming year: Equipment depreciation                               $160,000 Equipment maintenance                                   60,000 Supervisory salaries                                         40,000 Factory rent                                                   100,000 Total                                                           $360,000 Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. Required: a.                         b. Calculate the predetermined overhead rate using machine hours as the allocation base.
A company's planned activity level for next year is expected to be 100,000 machine hours. At...
A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect materials $140,000 Depreciation $60,000 Indirect labor 200,000 Taxes 10,000 Factory supplies 20,000 Supervision 50,000 A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of
Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $76,000 for the...
Applying Factory Overhead Jernigan Company estimates that total factory overhead costs will be $76,000 for the year. Direct labor hours are estimated to be 19,000. a. For Jernigan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Jernigan Company accumulated 580 hours of direct labor costs on Job 200 and 630 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and...
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 $637,294 for the year. Direct labor...
Cavy Company estimates that total factory overhead costs will be $637,294 for the year. Direct labor hours are estimated to be 92,900. a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. $................ per direct labor hour b. Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and to Job 999 if the amount of direct labor hours is 3,200. Job 567 $ Job 999 $...
Applying Factory Overhead Keenan Company estimates that total factory overhead costs will be $144,000 for the...
Applying Factory Overhead Keenan Company estimates that total factory overhead costs will be $144,000 for the year. Direct labor hours are estimated to be 9,000. a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. $ per direct labor hour b. During August, Keenan Company accumulated 850 hours of direct labor costs on Job 40 and 890 hours on Job 42. Determine the...
Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next...
Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 400,000 units are expected to be produced requiring 1.2 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Department 1 Department 2 Manufacturing overhead costs $ 2,530,000 $ 2,752,000 Direct labor hours 168,000 DLH 110,000 DLH Machine hours 30,000 MH 8,000 MH
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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT