Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs Ilberg Company uses normal costing and applies overhead on the basis of direct labor cost (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate ) For the month of December, direct labor cost was $39,900 Calculate the predetermined overhead rate for the year Enter the percentage answer as a whole number of direct labor cost Calculate the overhead applied to production in December Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Hallett Company estimated the following Cutting department Sewing department Total Overhead $240,000 $350,000 $590,000 Direct labor hours 31,200 99,800 131,000 Machine hours 150,000 150,000 Hallett uses departmental overhead rates In the cutting department, overhead is applied on the basis of machine hours In the sewing department, overhead is applied on the basis of direct labor hours Actual data for the month of June are as follows 1 Calculate the predetermined overhead rates for the cutting and sewing departments Round your answers to the nearest cent Cutting department $ per machine hour Sewing department $ per direct labor hour 2 Calculate the overhead applied to production in each department for the month of June Use overhead application rates that are rounded to the nearest cent in your calculations, and round your final answers to the nearest dollar Cutting department $ Sewing department $ 3 By how much has each department's overhead been overapplied or underapplied Cutting department $ Overapplied or under applied Sewing department $ Overapplied or under applied Job Order Costing versus Process Costing Required Identify each of the following types of businesses as either job order or process costing a Hospital services b Custom cabinet making c Toy manufacturing d Soft drink bottling e Airplane manufacturing (e g , 767s) f Personal computer assembly g Furniture making (e g , computer desks sold at discount stores) h Custom furniture making i Dental services j Paper manufacturing k Nut and bolt manufacturing l Auto repair m Architectural services n Landscape design services o Flashlight manufacturing Calculating the Predetermined Overhead Rate, Applying Overhead to Production Reconciling Overhead at the End of the year, Adjusting Cost of Goods Sold for Under and Overapplied Overhead At the beginning of the year, Horvath Company estimated the following Overhead $360,000 Direct labor hours 90,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours For the month of January, direct labor Hours were 8,450 By the end of the year, Horvath showed the following actual amounts Overhead $366,000 Direct labor hours 89,600 Assume that unadjusted Cost of Goods Sold for Horvath was $576,000 Required 1 Calculate the predetermine overhead rate for Horvath Round your answers to the nearest cent, if rounding is required $ per direct labor hour 2 Calculate the overhead applied to production in January (Note Round to the nearest dollar If Rounding is required) $ Calculate the total applied overhead for the year $ Was overhead over or underapplied By how much $ Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance $ Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs Ilberg Company uses normal costing and applies overhead on the basis of direct labor cost (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate ) For the month of December, direct labor cost was $39,900 1 Calculate the predetermined overhead rate for the year Enter the percentage answer as a whole number of direct labor cost 2 Calculate the overhead applied to production in December Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Hallett Company estimated the following Cutting department Sewing department Total Overhead $240,000 $350,000 $590,000 Direct labor hours 31,200 99,800 131,000 Machine hours 150,000 150,000 Hallett uses departmental overhead rates In the cutting department, overhead is applied on the basis of machine hours In the sewing department, overhead is applied on the basis of direct labor hours Actual data for the month of June are as follows 1 Calculate the predetermined overhead rates for the cutting and sewing departments Round your answers to the nearest cent Cutting department $ per machine hour Sewing department $ per direct labor hour 2 Calculate the overhead applied to production in each department for the month of June Use overhead application rates that are rounded to the nearest cent in your calculations, and round your final answers to the nearest dollar Cutting department $ Sewing department $ 3 By how much has each department's overhead been overapplied or underapplied Cutting department $ Overapplied or under applied Sewing department $ Overapplied or under applied JobOrder Costing versus Process Costing Required Identify each of the following types of businesses as either joborder or process costing a Hospital services b Custom cabinet making c Toy manufacturing d Softdrink bottling e Airplane manufacturing (e g , 767s) f Personal computer assembly g Furniture making (e g , computer desks sold at discount stores) h Custom furniture making i Dental services j Paper manufacturing k Nut and bolt manufacturing l Auto repair m Architectural services n Landscape design services o Flashlight manufacturing Calculating the Predetermined Overhead Rate, Applying Overhead to Production Reconciling Overhead at the End of the year, Adjusting Cost of Goods Sold for Under and Overapplied Overhead At the beginning of the year, Horvath Company estimated the following Overhead Direct labor hours $360,000 90,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours For the month of January, direct labor Hours were 8,450 By the end of the year, Horvath showed the following actual amounts Overhead Direct labor hours $366,000 89,600 Assume that unadjusted Cost of Goods Sold for Horvath was $576,000 Required 1 Calculate the predetermine overhead rate for Horvath Round your answers to the nearest cent, if rounding is required $ per direct labor hour 2 Calculate the overhead applied to production in January (Note Round to the nearest dollar If Rounding is required) $ 3 Calculate the total applied overhead for the year $ Was overhead over or underapplied By how much $ 4 Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance $

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 27, 2024

Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Ilberg Company uses normal costing and applies overhead

Predetermined Overhead Rate, Overhead Application

At the beginning of the year, Ilberg Company estimated the following costs:

Ilberg Company uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $39,900.

Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number._________________ % of direct labor cost
Calculate the overhead applied to production in December._______________

Predetermined Departmental Overhead Rates, Applying Overhead to Production

At the beginning of the year, Hallett Company estimated the following:

Cutting department Sewing department Total

Overhead $240,000 $350,000 $590,000

Direct labor hours 31,200 99,800 131,000

Machine hours 150,000 ? 150,000

Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows:

1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent.

Cutting department $____________per machine hour

Sewing department $____________per direct labor hour

2. Calculate the overhead applied to production in each department for the month of June. Use overhead application rates that are rounded to the nearest cent in your calculations, and round your final answers to the nearest dollar.

Cutting department $____________

Sewing department $____________

3. By how much has each department's overhead been overapplied or underapplied?

Cutting department $____________ Overapplied or under applied?

Sewing department $____________ Overapplied or under applied?

Job-Order Costing versus Process Costing

Required:

Identify each of the following types of businesses as either job-order or process costing.

a. Hospital services______________

b. Custom cabinet making______________

c. Toy manufacturing______________

d. Soft-drink bottling______________

e. Airplane manufacturing (e.g., 767s) ______________

f. Personal computer assembly______________

g. Furniture making (e.g., computer desks sold at discount stores) ______________

h. Custom furniture making______________

i. Dental services______________

j. Paper manufacturing______________

k. Nut and bolt manufacturing______________

l. Auto repair______________

m. Architectural services______________

n. Landscape design services______________

o. Flashlight manufacturing______________

Calculating the Predetermined Overhead Rate, Applying Overhead to Production. Reconciling Overhead at the End of the year,

Adjusting Cost of Goods Sold for Under- and Overapplied Overhead

At the beginning of the year, Horvath Company estimated the following:

Overhead	$360,000
Direct labor hours	90,000

Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor

Hours were 8,450. By the end of the year, Horvath showed the following actual amounts:

Overhead	$366,000
Direct labor hours	89,600

Assume that unadjusted Cost of Goods Sold for Horvath was $576,000.

Required:

1.Calculate the predetermine overhead rate for Horvath. Round your answers to the nearest cent, if rounding is required.

$_____________ per direct labor hour

2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar. If

Rounding is required) $_____________

Calculate the total applied overhead for the year. $________________

Was overhead over- or underapplied? By how much? $__________________

Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.$____________

Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Ilberg Company uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $39,900. 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number._________________ % of direct labor cost 2. Calculate the overhead applied to production in December._______________ Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Hallett Company estimated the following: Cutting department Sewing department Total Overhead $240,000 $350,000 $590,000 Direct labor hours 31,200 99,800 131,000 Machine hours 150,000 150,000 Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: 1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Cutting department $____________per machine hour Sewing department $____________per direct labor hour 2. Calculate the overhead applied to production in each department for the month of June. Use overhead application rates that are rounded to the nearest cent in your calculations, and round your final answers to the nearest dollar. Cutting department $____________ Sewing department $____________ 3. By how much has each department's overhead been overapplied or underapplied? Cutting department $____________ Overapplied or under applied? Sewing department $____________ Overapplied or under applied? JobOrder Costing versus Process Costing Required: Identify each of the following types of businesses as either joborder or process costing. a. Hospital services______________ b. Custom cabinet making______________ c. Toy manufacturing______________ d. Softdrink bottling______________ e. Airplane manufacturing (e.g., 767s) ______________ f. Personal computer assembly______________ g. Furniture making (e.g., computer desks sold at discount stores) ______________ h. Custom furniture making______________ i. Dental services______________ j. Paper manufacturing______________ k. Nut and bolt manufacturing______________ l. Auto repair______________ m. Architectural services______________ n. Landscape design services______________ o. Flashlight manufacturing______________ Calculating the Predetermined Overhead Rate, Applying Overhead to Production. Reconciling Overhead at the End of the year, Adjusting Cost of Goods Sold for Under and Overapplied Overhead At the beginning of the year, Horvath Company estimated the following: Overhead Direct labor hours $360,000 90,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor Hours were 8,450. By the end of the year, Horvath showed the following actual amounts: Overhead Direct labor hours $366,000 89,600 Assume that unadjusted Cost of Goods Sold for Horvath was $576,000. Required: 1.Calculate the predetermine overhead rate for Horvath. Round your answers to the nearest cent, if rounding is required. $_____________ per direct labor hour 2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar. If Rounding is required) $_____________ 3. Calculate the total applied overhead for the year. $________________ Was overhead over- or underapplied? By how much? $__________________ 4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.$____________