Please provide answer in text (Without image) Different companies use different bases in computing their predetermined overhead rates. Fromthe following data compute the predetermined rate used by each company.InformationMachine-hoursDirect labor-hoursDirect labor costManufacturing Overhead CostBasis for determining predeterminedoverhead rateTotal estimatedCompany overhead costRockPaperScissorsAssume the actual hours and cost data were:(Round your answers to two decimal places when needed and use rounded answers for all futurecalculations).1. Compute the overhead for each company.2. Compute the overhead for each company.Actual Quantity ofCompany the Allocation BaseUsed by EachRockPaperScissorsRockDateInformationRock Paper Scissors110,600 190,800 137,600Machine-hoursDirect labor-hours44.800 48,000 40,400Direct labor cost$846,500 $704,700 $397,800Manufacturing Overhead Cost $459,000 $399,700 $373,900PaperDate?ScissorsDateDescriptionDescriptionDescription?100,10050,700$805,000$394,450VVVDirect laborcostRockTotal estimatedquantity of theoverhead allocation.DebitDebitbaseDebit20,30048,700$741,400$447,066Direct labor-hoursPredeterminedOverheadAllocation RatePaperCreditCredit3. Prepare the journal entries to adjust for overallocated or underallocated overhead to Cost ofGoods Sold for each company.Credit===-=Scissors=125,10038,300$407,900$421,587Machine-hours.PredeterminedOverhead AllocationRateJob AllocatedManufacturingOverhead Cost

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Description: Please provide answer in text (Without image) Different companies use different bases in computing their predetermined overhead rates. Fromthe following data compute the predetermined rate used by each company.InformationMachine-hoursDirect labor-hou

The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…

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rent companies use different bases in computing their predetermined overhead rates. From the following data compute the predetermined rate used by each company. Direct labor-hours Direct labor cost Manufacturing Overhead Cost Basis for determining predetermined overhead rate Company Information Machine-hours Rock Paper Scissors Total estimated overhead cost ? Assume the actual hours and cost data were: Rock Rock 2. Compute the overhead for each company. Actual Quantity of Company the Allocation Base ? Used by Each 100,100 50,700 $805,000 $394,450 (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the overhead for each company. Direct labor cost Information Rock Paper Scissors Machine-hours Direct labor-hours 110,600 190,800 137,600 44,800 48,000 40,400 Direct labor cost $846,500 $704,700 $397,800 Manufacturing Overhead Cost $459,000 $399,700 $373,900 base 20,300 48,700 Total estimated quantity of the overhead allocation Paper $741,400 $447,066 Direct labor- hours Predetermined Overhead Allocation Rate Scissors 11 125,100 38,300 $407,900 $421,587 Machine- hours 11 = Overhead Allocation Predetermined Rate Job Allocated Manufacturing Overhead Cost

rent companies use different bases in computing their predetermined overhead rates. From the following data compute the predetermined rate used by each company. Direct labor-hours Direct labor cost Manufacturing Overhead Cost Basis for determining predetermined overhead rate Company Information Machine-hours Rock Paper Scissors Total estimated overhead cost ? Assume the actual hours and cost data were: Rock Rock 2. Compute the overhead for each company. Actual Quantity of Company the Allocation Base ? Used by Each 100,100 50,700 $805,000 $394,450 (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the overhead for each company. Direct labor cost Information Rock Paper Scissors Machine-hours Direct labor-hours 110,600 190,800 137,600 44,800 48,000 40,400 Direct labor cost $846,500 $704,700 $397,800 Manufacturing Overhead Cost $459,000 $399,700 $373,900 base 20,300 48,700 Total estimated quantity of the overhead allocation Paper $741,400 $447,066 Direct labor- hours Predetermined Overhead Allocation Rate Scissors 11 125,100 38,300 $407,900 $421,587 Machine- hours 11 = Overhead Allocation Predetermined Rate Job Allocated Manufacturing Overhead Cost

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 4MCQ: The predetermined overhead rate equals a. actual overhead divided by actual activity level for a...

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Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
MountaIn Peaks applies overhead on the basis of machine hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over- or under applied, and by what amount? D. What is the journal entry to dispose of the over- or under applied overhead?
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
Freeman Furnishings has summarized its data as shown: Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours
Mountain Tops applies overhead on the basis of direct labor hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over applied or under applied, and by what amount? D. What is the journal entry to dispose of the over applied or under applied overhead?
The predetermined overhead rate equals a. actual overhead divided by actual activity level for a period. b. estimated overhead divided by estimated activity level for a period. c. actual overhead minus estimated overhead. d. actual overhead multiplied by actual activity level for a period. e. one-twelfth of estimated overhead.
Rocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at $1.25 for each direct labor dollar spent. What is the total cost for each of the jobs?
Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at twice the direct labor cost. What is the total cost for each job?
All the following statements about predetermined overhead rates are correct, EXCEPT: a. calculated at the beginning of the accounting period once the actual amount of manufacturing overhead is known. O b. calculated based on estimated total manufacturing overhead costs O c. All the given answers are correct. O d. by dividing total estimated manufacturing overhead cost by actual units of the allocation base. O e. calculated first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs.
All the following statements about predetermined overhead rates are correct, EXCEPT: O a. based on estimated total manufacturing overhead costs O b. calculated at the end of the accounting period once the actual amount of manufacturing overhead is known. O c. calculated by dividing total estimated manufacturing overhead cost by estimated units of the allocation base. d. All the given answers are correct. е. calculated first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs.