Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information was reported by Minstrel Company relating to its first year of operations. Note that Minstrel has only identified direct labor and direct

The following information was reported by Minstrel Company relating to its first year of operations. Note that Minstrel has only identified direct labor and direct materials as direct costs.
Item Expected Cost Actual Cost
Advertising Expenditures $154,500 $158,200
Depreciation on Factory Equipment $535,500 $570,900
Direct Labor $991,000 $819,000
Direct Materials $1,285,000 $1,276,000
Factory Supplies $103,500 $101,800
Head Office General Expenditures $341,400 $336,800
Head Office Salaries $340,400 $383,200
Heating in Factory $115,200 $124,000
Income Taxes $2,202,000 $2,872,000
Machine Repair and Maintenance $109,300 $94,100
Production Supervisor Wages $119,500 $124,600
Rent for Factory $981,300 $988,200
Office Supplies $123,800 $122,600
Sales Expenditures $404,200 $408,500
Total $7,806,600 $8,379,900
Minstrel Company allocates manufacturing overhead using a predetermined overhead rate. Minstrel uses direct labor hours as an allocation base and expects to incur 37,800 direct labor hours.
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 Answer
Depreciation on Factory Equipment Answer
Direct Labor Answer
Direct Materials Answer
Factory Supplies Answer
Head Office General Expenditures Answer
Head Office Salaries Answer
Heating in Factory Answer
Income Taxes Answer
Machine Repair and Maintenance Answer
Production Supervisor Wages Answer
Rent for Factory Answer
Office Supplies Answer
Sales Expenditures Answer
Estimated Manufacturing Overhead Costs: Answer
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 $21, 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 $21/hr.
Answer
: Answer

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

Financial Accounting Theory and Analysis Text and Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

12th edition

1119386209, 978-1119299349, 1119299349, 1119186331, 978-1119186335, 978-1119386209

More Books

Students also viewed these Accounting questions

Question

Discuss how to obtain your first job.

Answered: 1 week ago