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The following information was reported by Bard Company relating to its first year of operations. Note that Bard has only identified direct labor and direct
The following information was reported by Bard Company relating to its first year of operations. Note that Bard has only identified direct labor and direct materials as direct costs.
Item | Expected Cost | Actual Cost |
Advertising Expenditures | $156,400 | $154,500 |
Depreciation on Factory Equipment | $544,100 | $526,600 |
Direct Labor | $846,000 | $993,000 |
Direct Materials | $1,213,000 | $1,259,000 |
Factory Supplies | $97,400 | $108,600 |
Head Office General Expenditures | $356,400 | $392,100 |
Head Office Salaries | $326,500 | $345,600 |
Heating in Factory | $120,800 | $117,900 |
Income Taxes | $2,135,000 | $2,799,000 |
Machine Repair and Maintenance | $109,200 | $102,200 |
Production Supervisor Wages | $115,300 | $127,300 |
Rent for Factory | $991,700 | $919,300 |
Office Supplies | $111,000 | $119,900 |
Sales Expenditures | $463,800 | $488,500 |
Total | $7,586,600 | $8,453,500 |
a) What is the total estimated manufacturing overhead cost?
Do not enter dollar signs or commas in the input boxes.
Item | Overhead Cost? |
Advertising Expenditures | AnswerNoYes |
Depreciation on Factory Equipment | AnswerNoYes |
Direct Labor | AnswerNoYes |
Direct Materials | AnswerNoYes |
Factory Supplies | AnswerNoYes |
Head Office General Expenditures | AnswerNoYes |
Head Office Salaries | AnswerNoYes |
Heating in Factory | AnswerNoYes |
Income Taxes | AnswerNoYes |
Machine Repair and Maintenance | AnswerNoYes |
Production Supervisor Wages | AnswerNoYes |
Rent for Factory | AnswerNoYes |
Office Supplies | AnswerNoYes |
Sales Expenditures | AnswerNoYes |
b) What is the predetermined overhead rate?
Round your answer to 2 decimal places.
Predetermined overhead rate: Answer
c) If the hourly rate for direct labor is $25, what is the manufacturing overhead applied to production?
Round your answer to the nearest whole number.
Applied Overhead: Answer
d) What is the over or under-allocated manufacturing overhead for this year? Assume the wage rate is still $25/hr.
AnswerOver-allocatedUnder-allocated: Answer
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