ACCT6111-Fall2022 Assignment 2 [Chapter 13} 1. AB Company produces automobile bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of 515.00 per machine hour was established for 2022. a. If 9,000 machine hours were expected to be used during 2022, how much overhead was expected to be incurred? b. Actual overhead incurred during 2022 totaled $135,000, and 9,200 machine hours were used during 2022. Calculate the amount of over- or underappiied overhead for 2022. 2. Seeb Boats estimates the following for 2022: Manufacturing overhead 5 480,000 Direct labor hours 48,000 Machine hours 100,000 During 2022 Seeb Boats incurs the following costs and activity: Manufacturing overhead 5 508,000 Direct labor hours 52,000 Machine hours 108,000 Seeb Boats uses direct labor hours to calculate the predetermined overhead rate for the year. a. Calculate the predetermined overhead rate for 2022. 1:. Calculate the applied overhead for 2022. c. Calculate the amount of overapplied or underapplied overhead for 2022. 3. The following are beginning and ending inventories of ABC Companv for the month of May: April 30 May 31 Raw materials 5 50,300 3 41,400 Work-in-process 106,900 97,200 Finished goods 70,300 62,800 Raw materials purchased during the month of May totaled $185,900. Direct labor costs incurred totaled $468,300 for the month. Actual and applied manufacturing overhead costs for Mav totaled $232,600 and $288,400, respectively. Dver/underapplied overhead is written off to cost of goods sold at the end of the year in December. a. Calculate the cost of goods manufactured for May. b. Calculate the cost of goods sold for May. 7. Company C reported the following for the month of October: Sales $150,000 Unadjusted costs of goods sold $70,000 Applied manufacturing overhead $25,000 Actual manufacturing overhead $20,000 How much is the adjusted gross profit? 8. Company D reported the following for the last month: Direct materials purchased $55,000 MOH application rate 60% of Direct Labor Costs of goods manufactured $250,000 Work in process inventory decreased by $12,000 Direct materials inventory increased by $7,000 How much is the direct labor cost? 9. AB Company uses a job-order costing system. The company worked in two jobs during the month of June: Job A and Job B. Costs going through the company's work in process account during June are given below. Manufacturing overhead is applied to production using a predetermined overhead rate (POHR) based on direct labor cost. Work in Process Transferred Balance 0 out 110,000 Direct materials 40,000 Direct labor 30,000 Manufacturing overhead applied 90,000 Balance 50,000 Only Job B was still in process at the end of the month. This job had been charged with $15,000 in direct materials cost. a. How much direct materials cost was charged to Job A? b. How much direct labor cost was charged to Job B?4. Muscat Enterprises uses a plantwide overhead rate based on direct labor-hours to allocate overhead costs. it is considering implementing an activity-based costing {ABC} system that allocates its manufacturing overhead to three cost pools. The following estimates are provided for the coming year: Cost Pool Overhead Costs Activity: measure Supervision of direct labor $320,000 800,000 Direct labor-hours Machine maintenance $120,000 960,000 Machine~hours Facility rent $200,000 100,000 Square feet of area The accounting records show the Tammam Job consumed the following resources: 200 Direct labor-hours, 1,600 Machine-hours, and 50 Square feet of area. 3] Using direct labor-hours as the only overhead cost driver, what is the amount of overhead costs allocated to the Tammam Job? b} Using the ABC, what is the total amount of overhead costs to be allocated to the Tammam Job? 5. Company M has reported the following information for the month of February: Direct labor $45,000 Manufacturing overhead applied $90,000 Direct materials inventory has decreased by $11,000 Work in process invention.r has increased by $13,000 Finished goods inventory has decreased by $6,000 Cost of goods manufactured $185,000 How much is the direct materials purchased during the month? 6. Company Y uses a job-order costing system and applies manufacturing overhead based on direct labor costs. The work in process T-account for last vear is given below: Work in Process Bal. $15,000 $502,300 DM $?5,000 0L $110,000 MOI-l ? Bal. $11,200 Wat was the predetermined overhead rate