Calculating predetermined OH rates and applying overhead (2pts; 0.5pts each calculation): Sit Down, Ltd. is a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculating predetermined OH rates and applying overhead (2pts; 0.5pts each calculation): Sit Down, Ltd. is a manufacturer of custom order gaming chairs and uses a job order costing system. Prior to the beginning of year 2023, the firm estimated the following: Total estimated direct materials costs will be $20,000,000; . Total estimated direct labor costs will be $12,000,0000; . Total estimated Factory overhead costs will be $30,000,000. . . Total estimated Direct labor hours (DLh) will be 800,000 DLh. Total estimated Machine hours (Mh) will be 6,000,000 Mh. During January 2023, the firm started and completed Job 7. We have the following actual information about Job 7: DM used: $30 o DL used: $65 o Direct Labor hours (DLh) used: 0.75 Machine hours (Mh) used: 6 a1. Calculate the firm's predetermined OH rate assuming it uses direct material dollars (DMS) as its activity base. Express your answer as a percentage (%) and round to the nearest whole number (e.g. 42.55% = 43%). a2. Calculate the amount of factory overhead applied to job 7 if the firm uses DM dollars (DMS) to apply overhead. b1. Calculate the firm's predetermined OH rate assuming it uses Machine hours (Mh) as its activity base. Express your answer in terms of dollars per Mh. b2. Calculate the amount of factory overhead applied to job 7 if the firm uses Machine hours (Mh) to apply overhead. 3. Under-/overapplied Factory OH costs (1pt; 0.5pts each): Billy's Shirts is a specialty T-shirt manufacturer that uses a job order costing system. The firm reports the following (partial) T-account activity at the end of its first year of operations. Factory Overhead Debit $150,000 Credit $2,500,000 $890,000 $1,459,850 a. Compute the under- or overapplied overhead for the year. b. Prepare the journal entry to close the Factory Overhead T-account to Cost of Goods Sold. Calculating predetermined OH rates and applying overhead (2pts; 0.5pts each calculation): Sit Down, Ltd. is a manufacturer of custom order gaming chairs and uses a job order costing system. Prior to the beginning of year 2023, the firm estimated the following: Total estimated direct materials costs will be $20,000,000; . Total estimated direct labor costs will be $12,000,0000; . Total estimated Factory overhead costs will be $30,000,000. . . Total estimated Direct labor hours (DLh) will be 800,000 DLh. Total estimated Machine hours (Mh) will be 6,000,000 Mh. During January 2023, the firm started and completed Job 7. We have the following actual information about Job 7: DM used: $30 o DL used: $65 o Direct Labor hours (DLh) used: 0.75 Machine hours (Mh) used: 6 a1. Calculate the firm's predetermined OH rate assuming it uses direct material dollars (DMS) as its activity base. Express your answer as a percentage (%) and round to the nearest whole number (e.g. 42.55% = 43%). a2. Calculate the amount of factory overhead applied to job 7 if the firm uses DM dollars (DMS) to apply overhead. b1. Calculate the firm's predetermined OH rate assuming it uses Machine hours (Mh) as its activity base. Express your answer in terms of dollars per Mh. b2. Calculate the amount of factory overhead applied to job 7 if the firm uses Machine hours (Mh) to apply overhead. 3. Under-/overapplied Factory OH costs (1pt; 0.5pts each): Billy's Shirts is a specialty T-shirt manufacturer that uses a job order costing system. The firm reports the following (partial) T-account activity at the end of its first year of operations. Factory Overhead Debit $150,000 Credit $2,500,000 $890,000 $1,459,850 a. Compute the under- or overapplied overhead for the year. b. Prepare the journal entry to close the Factory Overhead T-account to Cost of Goods Sold.
Expert Answer:
Answer rating: 100% (QA)
a1 To calculate the predetermined overhead OH rate using direct material dollars DMS as the activity base we divide the total estimated factory overhe... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
A project has estimated annual net cash flows of $10,000 for two years and is estimated to cost $40,000. Assume a minimum acceptable rate of return of 20%. Use the Present Value of an Annuity of $1...
-
Discuss what specifically motivates you at work or at school. Think specifically about a time where you really put a lot of energy into a task. Why did you work so hard? What do you think you were...
-
Chromalox Instruments and Controls, located in LaVergne, Tennessee, is a manufacturer of industrial process controllers, monitors, and industrial and military control panels. Chromalox products are...
-
Valuing Preferred Stock Best Rate Bank just issued some new preferred stock. The issue will pay a $10 annual dividend in perpetuity, beginning 10 years from now. If the market requires a 7 percent...
-
What benefits does Tescos information exchange offer to the retailer and its suppliers?
-
When you graduate, you may receive communications from your schools alumni office. For example, the Open Letter from Georgia Techs School of Electrical and Computer Engineering is posted on the...
-
When a manager moves upward in responsibility, Katz suggests that ____________ skills decrease in importance and ____________ skills increase in importance. (a) human, conceptual (b) conceptual,...
-
For each overhead cost activity below, determine whether it is a unit-level, batch-level, product-line, or facility support activity. 1. Employee training. Employees need special training to work...
-
i Data Table Current Assets: 2018 2017 - X Cash $ 90,200 $ 26,500 Accounts Receivable Merchandise Inventory 14,700 21,100 63,200 59,800 Current Liabilities: Accounts Payable 30,100 29,100 Accrued...
-
What facts of the Cynthia Sommer case and the factors that contributed to the wrongful conviction in this particular case? What are two negative consequences of this particular person's wrongful...
-
Explain how to use and extract information from engineering drawings and related specifications (to include symbols and conventions to appropriate BS or ISO standards) in relation to work undertaken:
-
When Alex changes roles, what should occur?
-
a) Make initial journal entries. b) Make entries that are adjusted for December 31, 2017. Action Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in...
-
12. When a number 2 1 is a prime, it is called a Mersenne prime. The largest known Mersenne prime at present is 232582657 1 containing 9808358 digits. Determine whether each of these integers is...
-
explain why you need to refer to the PID's for the dtc to analyze freeze frame data.
-
Skylar works in Alberta for a local restaurant. Her weekly salary is $593.45 and she uses a federal claim code 2 and a provincial claim code 2 on her TD1s. Skylar also pays 2.5% of her regular pay...
-
What key concerns must functional tactics address in marketing? Finance? POM? Personnel?
-
Company Z (a successful efforts company) owns 100% WI in a lease in which Dudley Smith owns a 1/8 royalty interest. Company Z conveys to Company Q 30% of the working interest in exchange for a cash...
-
Company Z owns a 100% WI in a proved property with net capitalized costs of \($100,000\). Company Z sold the lease for \($250,000\) cash and a production payment of \($150,000\), plus interest of 10%...
-
Lomax Company assigned 40% of the working interest in an unproved property with a 1/8 royalty interest to Mabel Company in return for Mabel Company bearing all costs of drilling, developing, and...
Study smarter with the SolutionInn App