Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Windsor Company uses activity-based costing to determine product costs. Some of the entries have been completed to the manufacturing overhead account for the current year,

Windsor Company uses activity-based costing to determine product costs. Some of the entries have been completed to the manufacturing overhead account for the current year, as shown by entry (a) below:

Manufacturing Overhead
(a) 2,306,000

Required:

1. What does entry (a) represent?

multiple choice

Overhead applied

Machine-hours

Actual manufacturing overhead cost incurred

2. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:

Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Labour related Direct labour-hours $ 546,000 42,000 DLHs
Purchase orders Number of orders 39,520 1,520 orders
Parts management Number of part types 360,000 396 part types
Board etching Number of boards 452,000 2,000 boards
General factory Machine-hours 594,000 79,200 MHs

Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. (Note: Round your final answers to 1 decimal place).

Activity Cost Pool Actual Activity
Labour related per direct labour-hours
Purchase orders per order
Parts management per part type
Board etching per board
General factory per machine-hours

3.. During the year, actual activity was recorded as follows:

Activity Cost Pool Actual Activity
Labour related 39,900 DLHs
Purchase orders 1,290 orders
Parts management 420 part types
Board etching 2,170 boards
General factory 82,600 MHs

Determine the amount of manufacturing overhead cost applied to production for the year. (Note: Round intermediate calculations to 1 decimal place and final answers to the nearest whole dollar amount).

Activity Cost Pool Applied Overhead
Labour related
Purchase orders
Parts management
Board etching
General factory
Total

$0

4. Determine the amount of underapplied or overapplied overhead cost for the year. (Note: Round intermediate calculations to 1 decimal place and final answers to the nearest whole dollar amount).

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_2

Step: 3

blur-text-image_3

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

Auditing and Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

9th edition

1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

8.10 Explain several common types of training for special purposes.

Answered: 1 week ago