Question
Question1 Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 29,000
Question1
Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 29,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $584,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $763,694 and its actual total direct labor was 29,500 hours.
Required:
Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
Question 2
Westan Corporation uses a predetermined overhead rate of $23.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $282,000 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.
The company incurred actual total manufacturing overhead costs of $266,000 and 10,900 total direct labor-hours during the period.
Required:
Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
Question3
Weaver Company's predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information pertains to Job A-200:
|
|
Direct materials | $230 |
Direct labor | $50 |
Required:
1. What is the total manufacturing cost assigned to Job A-200?
2. If Job A-200 consists of 50 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)
Question4
Kirkaid Company recorded the following transactions for the just completed month:
a. $108,000 in raw materials were requisitioned for use in production. Of this amount, $84,000 was for direct materials and the remainder was for indirect materials.
b. Total labor wages of $132,000 were incurred. Of this amount, $117,000 was for direct labor and the remainder was for indirect labor.
c. Additional actual manufacturing overhead costs of $209,000 were incurred.
d. A total of $258,000 in manufacturing overhead was applied to jobs.
Required:
Determine the underapplied or overapplied overhead for the month.
Question5
Morrow Corporation had only one job in process during MayJob X32Zand had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:
| Job X32Z | |
Beginning balance | $ | 8,000 |
Charged to the job during May |
|
|
Direct materials | $ | 12,500 |
Direct labor | $ | 4,900 |
Manufacturing overhead applied | $ | 7,000 |
Units completed |
| 270 |
Units in process at the end of May |
| 0 |
Units sold during May |
| 125 |
|
In May, overhead was overapplied by $470. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.
Required:
1. Using the direct method, what is the cost of goods sold for May?
2. What is the total value of the finished goods inventory at the end of May?
3. What is the total value of the work in process inventory at the end of May?
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