![pbrogers23](/avatars/39079.jpg)
pbrogers23
14.04.2020 •
Business
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 40 persons working an average of 3,000 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017.
Indirect labor $321,200
Factory supervision 156,000
Rent on factory building 142,000
Factory utilities 90,000
Factory insurance expired 70,000
Depreciation—Factory equipment 490,000
Repairs expense—Factory equipment 62,000
Factory supplies used 70,800
Miscellaneous production costs 38,000
Total estimated overhead costs $1,440,000
At year-end, records show the company incurred $1,542,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $606,000; Job 202, $565,000; Job 203, $300,000; Job 204, $718,000; and Job 205, $316,000. In addition, Job 206 is in process at the end of the year and had been charged $19,000 for direct labor. No jobs were in process at the beginning of the year. The company’s predetermined overhead rate is based on direct labor cost.
Required:
1-a. Determine the predetermined overhead rate for 2017.
1-b. Determine the total overhead cost applied to each of the six jobs during 2017.
1-c. Determine the over- or underapplied overhead at year-end 2017.
2. Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of 2017.
Solved
Show answers
More tips
- G Goods and services Is an Air Ionizer Necessary for Your Home?...
- C Construction and repair How to Choose the Best Underfloor Heating?...
- C Computers and Internet How to Get Rid of Windows Genuine Check?...
- C Computers and Internet War of Social Media: Which Platform is the Leader?...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
Answers on questions: Business
- B Business Which type of account would most financial advisors prefer for you to keep your reserve fund? Choose the best answer. Question 13 options: 529 checking account savings...
- B Business Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000....
- B Business Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600...
- B Business Complete the name of a behavioral continuum that exhibits the severity of a broad range of behaviors: Workplace ....
- B Business Larson, an unemployed carpenter, filed for voluntary bankruptcy on August 14, Year 3. Larson s liabilities are listed below. Credit card charges due March 2, Year...
- B Business A survey of 50 retail stores revealed that the average price of a microwave was $375 with a sample standard deviation of $20. Assuming the population is normally...
- B Business A company used straight-line depreciation for an item of equipment that cost $10,000, had a no salvage value, and had a five-year useful life. Determine the amount...
- E English The party (already/start) when three men (arrive). they (forget) their tickets, but they told the bouncer it s all right, we re friends of the referee. where should...
- M Mathematics What number is missing in the equation 3,947 = 3,000 + 40 + 7?...
- M Mathematics Round your answer to the nearest thousandth look!...
Ответ:
a) the predetermined overhead rate for 2017 is 60%
b) the total overhead cost is $1,514,400
c) Underapplied overhead is $27600
d)
Date General journal Debit Credit
Dec. 31 Cost of goods sold $36,400
Factory overhead $36,400
Explanation:
a) the predetermined overhead rate for 2017 is the ratio of estimated overhead cost to estimated direct labor cost
estimated direct labor cost = 40 persons × 3000 hours × $20 per hour = $2,400,000
the predetermined overhead rate for 2017 = estimated overhead cost / estimated direct labor cost = $1440000 / $2400000 = 0.6 = 60%
the predetermined overhead rate for 2017 is 60%
b) Overhead cost = direct labor × overhead rate
Job 201 Overhead cost =$606000 × 0.6 = $363600
Job 202 Overhead cost =$565000 × 0.6 = $339000
Job 203 Overhead cost =$300000 × 0.6 = $180000
Job 204 Overhead cost =$718000 × 0.6 = $430800
Job 205 Overhead cost =$316000 × 0.6 = $189600
Job 206 Overhead cost =$19000 × 0.6 = $11400
the total overhead cost = $363600 + $339000 + $180000 + $430800 + $189600 + $11400 = $1,514,400
the total overhead cost is $1,514,400
c) actual overhead costs = $1,542,000
the total overhead cost = $1,514,400
Underapplied overhead = actual overhead costs - total overhead cost = $1542000 - $1514400 = $27600
d)
Date General journal Debit Credit
Dec. 31 Cost of goods sold $36,400
Factory overhead $36,400
Ответ:
Bond Price or Present value = $1196.362948 rounded off to $1196.36
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1000 * 0.1 = $100
Total periods (n) = 20
r or YTM = 0.08 or 8%
The formula to calculate the price of the bonds today is attached.
Bond Price = 100 * [( 1 - (1+0.08)^-20) / 0.08] + 1000 / (1+0.08)^20
Bond Price or Present value = $1196.362948 rounded off to $1196.36