Linzee Liners estimates that its manufacturing overhead will be $1,752,600 in Year 1. It further estimates...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Linzee Liners estimates that its manufacturing overhead will be $1,752,600 in Year 1. It further estimates that direct labor costs will amount to $762,000. During March, Linzee worked on four jobs with actual direct labor costs of $36,200 for Job 0301, $23,700 for Job 0302, $33,200 for Job 0303, and $17,200 for Job 0304. Actual manufacturing overhead costs for the year were $1,740,000. Actual direct labor costs for the year were $747,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? b. What was the over- or underapplied manufacturing overhead for Year 1? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? Job 0301 Job 0302 Job 0303 Job 0304 Required A Required B What was the over- or underapplied manufacturing overhead for Year 1? manufacturing overhead < Required A Required B > Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Direct material Direct labor Overhead: Material handling overhead Fabrication overhead Plastic $ 660,000 360,000 240,000 Leather $ 680,000 440,000 220,000 a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) Total $ 1,340,000 Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? 800,000 460,000 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. 224,000 588,800 28 % of direct-materials cost 28 % of direct-labor cost Linzee Liners estimates that its manufacturing overhead will be $1,752,600 in Year 1. It further estimates that direct labor costs will amount to $762,000. During March, Linzee worked on four jobs with actual direct labor costs of $36,200 for Job 0301, $23,700 for Job 0302, $33,200 for Job 0303, and $17,200 for Job 0304. Actual manufacturing overhead costs for the year were $1,740,000. Actual direct labor costs for the year were $747,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? b. What was the over- or underapplied manufacturing overhead for Year 1? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? Job 0301 Job 0302 Job 0303 Job 0304 Required A Required B What was the over- or underapplied manufacturing overhead for Year 1? manufacturing overhead < Required A Required B > Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Direct material Direct labor Overhead: Material handling overhead Fabrication overhead Plastic $ 660,000 360,000 240,000 Leather $ 680,000 440,000 220,000 a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) Total $ 1,340,000 Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? 800,000 460,000 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. 224,000 588,800 28 % of direct-materials cost 28 % of direct-labor cost
Expert Answer:
Answer rating: 100% (QA)
Here are the steps to solve this problem a Material handling overhead rate Mat... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs...
-
Refer to the information in Exercise 7-34. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows. Required Prepare an entry to allocate the over- or...
-
Yarra Fabrication estimates that its manufacturing overhead will be $2,291,200 in year 1. It further estimates that direct material costs will amount to $1,432,000. During July, Yarra worked on four...
-
How do digital media change how we relate to others?
-
In 2018, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $350,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected...
-
Sourk Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax. Beginning general ledger account balances were Cash,...
-
In order for a transaction to be recorded in a business's accounting records, the effects of the transaction must be faithfully represented. What is faithful representation, and why is it important?...
-
Accounting for Notes Receivable On November 1, 2010, Gopher issued a $50,000, 6%, 90-day promissory note. Identify and analyze the adjustment required on December 31, the end of the companys fiscal...
-
10 a. Write the linear combination of the vector X1 X2 = (3) using standard basis. Draw the geometric (or graphical) version of the linear combination. (Approximate hand-drawing is sufficient)
-
Akha Ama Limited is a specialist manufacturer in the tea and coffee industry. It produces and sells two products: speciality Thai tea and Thai coffee. Akha Ama Limited is a small family-owned...
-
Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended December 31, 20X4. In planning the audit, Marilyn is attempting to develop expectations for planning...
-
Dog Delight must go, declared Mary Gold, Chief Executive Officer (and majority shareholder) of publicly traded PET Publications, Inc., (PPI) at the quarterly Board of Directors meeting last night....
-
Why do many organizations approach the whole management of [information] technology in an unstructured or ad hoc manner throughout the systems lifecycle? Why dont they view it as a structured...
-
Which of the following is potentially a planning technique to reduce unemployment taxes? Avoiding employee classification? Employee leasing? Operating in a new state? Acquisition of another...
-
We often talk of tangible and intangible benefits when evaluating IS/IT investments. How useful is this distinction? Consider the case study discussed in this chapter and the benefits identified when...
-
The authors state that technology scanning is seldom done formally. Information strategy typically evolves through a problem-driven process, with both top-down and bottom-up inputs from IT managers...
-
Eye color is an inherited trait. For purposes of this problem, assume that only two eye colors are possible, brown and blue. Use "b" to represent a blue eye gene and "B" a brown eye gene. If any B...
-
What are some of the possible sources of information about a company that could be used for determining the companys competitive stance?
-
Consider the Business Application A New Strategy for an Old Business. Prior to the internet, the The New York Times (and other papers) offered news, a crossword puzzle, recipes, and so on. The are...
-
Bortle Manufacturing Group estimates that sales for the coming year will be 576,000 units. Company policy is to maintain a finished goods inventory of one and one-half months unit sales. Beginning...
-
Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business...
-
Define a business transaction in the broad sense and give examples of the two different kinds of transactions.
-
What two equalities in accounting must be maintained in transaction analysis?
-
What is a T-account? What is its purpose?
Study smarter with the SolutionInn App