Part 1: At the beginning of 2023, Froto's garage made the following estimates Total overhead $330,000 Total direct labor dollars in 2023 $725,000 total direct labor hours in 2023 45,000 Determine the rate that Froto will assign overhead if he uses a) direct labor hours b) direct labor dollars Part 2; In July 2023 Bilbo brought his car into Froto's shop for some repairs the following was incurred by Froto to fix Bilbo's car spark plugs 6 at $6 each brake pads 4 at $22 each oil 5 quarts $2 each labor 5 hours at $19 each Bilbo paid Froto $505 for the car repair determine Froto's profit or loss on the Bilbo job is Froto allocates overhead using a) direct labor hours b) direct labor dollars Part 3: At the end of 2023 Froto had the following total overhead costs incurred $345,000 total direct labor hours worked 46100 total direct labor dollars paid $720,000 required: determine the amount of over or underapplied overhead if Froto allocates overhead using a) direct labor hours b) direct labor dollars c) make the journal entry Froto makes to correct overhead at the end of the year if Froto uses direct labor hours note: any difference is not material

The Hogwarts Oil Company began business on January 1st 2022. During 2022 and 2023 Hogwarts incurred the following 2022 Purchased 1,000,000 barrels of iol at $10 per barrel transferred 930,000 barrels of oil into the refinery produced 850,000 barrels of gasoline it takes 4 days to convert oil into gas the oil in the refinery was 3/4 done labor costs at the refinery $1,200,000 overhead costs at the refinery $175,000 725,000 barrels of gasoline were sold to the public 2023 purchased 1,000,000 barrels of oil at $10 per barrel transferred 1,050,000 barrels of oil into the refinery produced 1,025,000 barrels of gasoline it takes 4 days to convert oil into gas and the oil in the refinery was there for only 1 day (1/4 done) labor costs at the refinery $1,300,000 overhead costs at the refinery $700,000 sold 990,000 barrels of gasoline to the public REQUIRED: A) USING FIFO PROCESS COSTING DETERMINE THE COST OF A BARREL OF GASOLINE IN 2022 B) USING FIFO PROCESS COSTING DETERMINE THE COST OF A BARREL OF GASOLINE STARTED IN 2022 AND COMPLETED IN 2023 C) USING FIFO PROCESS COSTING DETERMINE THE COST OF A BARREL OF GASOLINE STARTED AND FINISHED IN 2023 D) USING WEIGHTED AVERAGE PROCESS COSTING DETERMINE THE COST OF A BARREL OF GASOLINE IN 2022 E) USING WEIGHTED AVERAGE PROCESS COSTING DETERMINE THE COST OF A BARREL OF GASOLINE IN 2023 F) USING WEIGHTED AVERAGE PROCESS COSTING DETERMINE THE 2022 VALUE OF: 1) RAW MATERIALS 2) WORK IN PROCESS 3) FINISHED GOODS 4) COST OF GOODS SOLD

The Potter Company makes 2 products: Brooms and Wands. Information about them is as follows: brooms wands units produced 24,000 5000 direct material cost per unit $9 $11 Machine hours per unit 7 10 production runs 100 60 Since the process is basically automated, the small amount of labor is simply included in overhead Manufacturing overhead consists of the following machine depreciation $101,000 set up costs $61,000 material handling $42,000 total overhead $204,000 REQUIRED; A) USING JOB ORDER COSTING AND MACHINE HOURS TO ALLOCATE OVERHEAD DETERMINE A1) THE PREDETERMINED OVERHEAD RATE A2) THE COST OF A BROOM A3) THE COST OF A WAND POTTER COMPANY HAS DECIDED TO ADOPT ABC AND ALLOCATE OVERHEAD AS FOLLOWS; MACHINE-HOURS FOR DEPRECIATION PRODUCTION RUNS FOR SETUP COSTS MATERIAL DOLLARS FOR MATERIAL HANDLING REQUIRED: B1) DETERMINE THE COST OF A BROOM B2) DETERMINE THE COST OF A WAND