Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

16. Erickkson Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company has provided the following

image text in transcribed

16. Erickkson Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year Direct materials Direct labor Rent on factory building Sales salaries Depreciation on factory equipment Indirect labor Production supervisor's salary S 5,000 19,000 16,000 24,000 7,000 11,000 14,000 Erickkson estimates that 24,000 direct labor hours will be worked during the year. The predetermined overhead rate per hour will be (assume the overhead costs identified are the only overhead costs): A) $2.00 B) $2.79 C) S3.00 D) S4.00 17. Precision Company developed a predetermined overhead rate last year of $3 per direct labor hour, based on an estimate of 24,000 direct labor hours to be worked during the year. Actual costs and activity during this year were: Actual manufacturing overhead cost incurred Actual direct labor hours worked $84,000 27,000 The under-or over applied overhead for the year was: A) $3,000 under applied. B) $3,000 over applied. C) $12,000 under applied. D) $12,000 over applied. 18. The following costs were incurred in June: Direct materials Direct labor Manufacturing overhead Selling expenses S37,000 $28,000 S36,000 $12,000 $20,000 Period expenses during the month totaled: A) S133,000. B) $68,000 C) S65,000 D) $32,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Logistics Audit Methods Organization And Practice

Authors: Piotr Buła, Bartosz Niedzielski

1st Edition

1032461268, 978-1032461267

More Books

Students also viewed these Accounting questions