Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermined rate was...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6656e158b06fe_8166656e15841fc0.jpg)
Transcribed Image Text:
Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct labor-hours. The company actually incurred $241,000 of manufacturing overhead and 12,300 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by Osborn Manufacturing uses a predetermined overhead rate of $19.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12,800 direct labor-hours. The company actually incurred $241,000 of manufacturing overhead and 12,300 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What is the advantage of using a perpetual budget instead of the traditional annual budget?
-
____________ is the combination of resources, knowledge, and techniques that creates a product or service output for an organization. (a) Information technology (b) Strategy (c) Organizational...
-
You plan to invest in Stock X, Stock Y, or some combination of the two. The expected return for X is 10% and X = 5%. The expected return for Y is 12% and Y = 6%. The correlation coefficient, rXY, is...
-
1. EA3. LO 10.1 Bridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor society's annual scholarship dinner. Her firm supports the...
-
In Terry v Ohio (1962) (http://laws.findlaw.com/us/392/1.html), the U.S. Supreme Court, for the first time, approved a search and seizure based on less than probable cause. Read the majority opinion....
-
how does "coffee culture" vary around the world? Do you think Starbucks will succeed in Italy? Why do entrepreneurs in many parts of the world open coffee shops? What accounts for the popularity of...
-
How does your worldview and faith play into group and team dynamics? Do you feel that your worldview allows you to develop better team relationships? What does your worldview say about being kind in...
-
How do shortages or surpluses factor into your explanation? What will happen to equilibrium price and quantity as a result of the shift? Which curve has a movement along it (hint: the other one)?...
-
how we can eccorage childers to play oudoor activities . give bullet points?
-
How should on manage expatriates and what are the key elements for Expatriate Performance Management and Global Team Performance Management? How important is Expatriate Training and Development? What...
-
15. According to Lean, unnecessary movement of the tools/equipment is a waste which is called: a. Transport b. Inventory c. Motion d. Rework
-
How many costs of capital are there in a company that has diversified into different (business) sectors but not geographic areas? What about if it has done so within each of the companys divisions?
-
Is the cost of equity equal to the return on the shares?
-
What risk are we talking about when we say that government bonds are risk-free?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App