Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sweet Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Sweet estimated that the

Sweet Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Sweet estimated that the total overhead costs would be $ 73,200 and that the total labour hours would be 2,440. At the end of the year, Sweet obtained the actual overhead costs from the ledger and found that the shop had incurred $ 66,808 and had worked 2,386 labour hours.

Compute the predetermined (budgeted) overhead rate.

Overhead Rate $

Compute the overhead amount that was applied for the year. Was overhead underapplied or overapplied?

Applied Overhead Amount $ Choose your answer here: Underapplied/Overapplied/Nor Overapplied/Neither Underapplied

Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

A customer brings her car to be fixed. She wants an estimate before she decides to have her car fixed. Sweet estimates that the parts would cost $ 236, labour costs $ 42/hour for 2.00 hours. What is the cost of this job?

Total Cost $

To provide a quote to a customer, Sweet adds a 42% mark up on the full costs. What is the quote for the job in (D)? (Round answer to 0 decimal places, e.g. 5,275.)

Quote $

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

Introduction To Accounting And Finance

Authors: Geoff Black

2nd Edition

0273711628, 978-0273711629

More Books

Students also viewed these Accounting questions

Question

Why do we forget information?

Answered: 1 week ago

Question

what is physical access control in cybersecurity

Answered: 1 week ago