Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please do all of the parts part 2, 3, 4 Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to
please do all of the parts
part 2, 3, 4
Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following (Click the icon to view the costs.) Requirements 1. Compute Smith's predetermined manufacturing overhead rate. 2. How much manufacturing overhead was allocated to jobs during the year? 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? 4. Were the jobs overcosted or undercosted? By how much? Requirement 2. How much manufacturing overhead was allocated to jobs during the year? Determine the formula to calculate the overhead to be allocated, then calculate the manufacturing overhead allocated. Manufacturing overhead allocated Manufacturing overhead costs $ 630,000 Direct labor cost $ 1,650,000 Machine hours. 90,000 At the end of the year, the company had actually incurred the following: $ 1,230,000 Direct labor cost Depreciation on manufacturing plant and equipment Property taxes on plant. Sales salaries 480,000 19,500 GA $ 26,500 Delivery drivers' wages. Plant janitors' wages $ $ 17,000 8,500 Machine hours. 56,500 hoursStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started