Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The following information applies to the questions displayed below In December 2

ID: 2459931 • Letter: T

Question

The following information applies to the questions displayed below In December 2014, Infodeo established its predetermined overhead rate for movies produced during year 2015 by using the following cost preditions overhead costs, $1,932,000,and direct labor costs, $460,000 At year-end 2015, the company's records show that actual overhead costs for the year are $985,000 Actual direct labor cost had been assigned to jobs as follows Movies completed and released $ 200,000 37,000 $237,000 Movies still in production Total actual direct labor cost $237000 References Section Break Exercise 2-15 Factory overhead computed, applied, and adjusted LO P3, P 3.00 points Exercise 2-15 Part 1 1·Determine the prod temned overhead rate for year 2015. Overhead rato DELL

Explanation / Answer

Choose Numerator

Choose denominator

Overhead rate

Predetermined overhead

Direct labor cost

Overhead rate

1,932,000

460,000

$.20

(2) Factory overhead

Overhead incurred

985,000

Overhead applied

237,000*4.20

995,400

Overapplied

10,400

(3)

Factory overhead

10,400

To Cost of goods sold

$10,400

Choose Numerator

Choose denominator

Overhead rate

Predetermined overhead

Direct labor cost

Overhead rate

1,932,000

460,000

$.20