Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Estimated cost and operating data for three companies for the upcoming year follow: Company X company Y Company Z Direct labor-hours...80,000 45,000 60,000 Machine-hours30,000 70,000

Estimated cost and operating data for three companies for the upcoming year follow:

Company X company Y Company Z

Direct labor-hours...80,000 45,000 60,000

Machine-hours30,000 70,000 21,000

Direct material cost..$400,000 $290,000 $300,000

Manufacturing overhead cost..$536,000 $315,000 $480,000

Predetermined overhead rates are computed using the following allocation bases in the three companies:

Allocation Base

Company X...Direct labor-hours

Company Y Machine-hours

Company Z..Direct materials cost

  1. Compute each companys predetermined overhead rate for company X

2. Assume that Company X works on three jobs during the upcoming year. Direct labor-hours recorded by job are: Job 418, 12,000 hours; Job 419, 36,000 hours; and Job 420, 30,000 hours. How much overhead will the company apply to Work in Process for the year?

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

Step: 3

blur-text-image

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

CPA Comprehensive Exam Review Auditing And Attestation

Authors: Nathan M. Bisk

43rd Edition

088128095X, 978-0881280951

More Books

Students also viewed these Accounting questions

Question

6. Identify the belly of the whale in Raiders of the Lost Ark.

Answered: 1 week ago

Question

Design a training session to maximize learning. page 296

Answered: 1 week ago

Question

Design a cross-cultural preparation program. page 300

Answered: 1 week ago