Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheridan Company estimates that annual manufacturing overhead costs will be $902,000. Estimated annual operating activity bases are direct labor cost $400,000, direct labor hours 40,000,

image text in transcribed
image text in transcribed
Sheridan Company estimates that annual manufacturing overhead costs will be $902,000. Estimated annual operating activity bases are direct labor cost $400,000, direct labor hours 40,000, and machine hours 100,000. Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, eg. 10.50) Overhead rate per direct labor cost Overhead rate per direct labor hour $ Overhead rate per machine hour Coronado Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 24,000, direct labor $ 14,400, and manufacturing overhead $ 19,200. As of January 1, Job 49 had been completed at a cost of $ 108,000 and was part of finished goods inventory. There was a $ 18,000 balance in the Raw Materials Inventory account. During the month of January, Coronado Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. 1. Purchased additional raw materials of $ 108,000 on account. 2. Incurred factory labor costs of $ 84,000. 3. Incurred manufacturing overhead costs as follows: indirect materials $ 20,400; indirect labor $ 24,000depreciation expense on equipment $ 14,400; and various other manufacturing overhead costs on account $ 19,200. 4. Assigned direct materials and direct labor to jobs as follows Job No. Direct Materials $ 12,000 Direct Labor $6,000 46,800 30,000 24,000 36,000 Calculate the predetermined overhead rate for 2020, assuming Coronado Company estimates total manufacturing overhead costs of $1,008,000 direct labor costs of $ 840,000, and direct labor hours of 24,000 for the year. (Round answer to the nearest whole percent, e.g. 25%) Predetermined overhead rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Thinking Development And Evaluation

Authors: Robyn L. Raschke, John A. Schatzel

1st Edition

1453396950, 9781453396957

More Books

Students also viewed these Accounting questions

Question

Explain the role of research design in HRD evaluation

Answered: 1 week ago