I 606 600 o13, Colby Company estimates that annual manufacturing overhead costs
ID: 2597835 • Letter: I
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I 606 600 o13, Colby Company estimates that annual manufacturing overhead costs will be $600,000. Estimated annual operating activit bases are: direct labor cost $460,000, direct labor hours 40,000 and machine hours 80,000 The actual manufacturing o . totaled 39,800 cost for the year was $601,000 and the actual direct labor cost for the year was $456,000. Actual direct labor hours and machine hours totaled 79,000. Colby applies overhead based on direct labor hours. Determine if overhead is over underapplied and the amount aoverapplied $4,000 b.- overapplied $597,000 $7.5 Cunderapplied $39,800 d.-none of the above 07 14. Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: $150,000 $145,000 Actual manufacturing overhead Estimated manufacturing overhead Direct labor hours incurred Direct labor hours estimated 4,800 Compute the predetermined overhead rate. a $31.25 per direct labor hour 14 lo b. $30.21 per direct labor hour c. $29 per direct labor hour d. $30 per direct labor hour 43 15. During 2016, Arb Company incurred the following direct labor costs: January $20,000 and February $30,000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled S19, S a $35,700. Actual overhead for the 2 months, respectively, totaled $25,000 and $33,500. Determine if overhead is over- or underapplied for February and the amount. a.-overapplied $2,500 b.-underapplied $1,000 c-underapplied $16,200 d.- none of the above 16. Tip Top Painting Company has the following production data for January: .Beginning work in process, 0 units Units transferred out, 35,000 Units in ending work in process, 10,000, which are 30% complete for conversion costs Materials are added only at the beginning of the process, Compute equivalent units of production for conversion cost. a.-38,000 b.-45,000 c 35,000 d 3,000 17. Lowman Painting Company has the following production data for March . Beginning work in process, 2,000 units Units transferred out, 42,000 · Units in ending work in process, 15,000, which are 80% complete for conversion costs Materials are added only at the beginning of the process. Compute equivalent units of production for conversion cost. a-12,000 b.-15,000 c. -57,000 d.-54,000 18. The Kirkland Department of Delta Company began the month of December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10 000 units. Ending work in process contains 8,000 units that are 100% complete as to materials and 60% complete as to conversion costs. Compute the equivalent units of production for conversion cost for the month of December. a.-10,000 b.-14,000 c.-14,800 d.-18,000Explanation / Answer
13) overhead rate = 600,000/40000 15 Actual overhead 601,000 applied overhead (15*39,800)= 597000 overhead under applied 4,000 option D is the correct answer 14) predetermined overhead rate = estimated manufacturing overhead/estimated direct labor hours 145000/5000 29 option c )$29 per direct labor hour 15) actual overhead for feb 33,500 applied overhead (30000*120%) 36000 overhead overapplied 2500 option a is the answer 16) Equivalent units for conversion units % CC units transferred out 35,000 100% 35,000 ending wip 10,000 30% 3,000 Equivalent units 38,000 opton a is the correct answer 17) Equivalent units for conversion units % CC units transferred out 42,000 100% 42,000 ending wip 15,000 80% 12,000 Equivalent units 54,000 opton d is the correct answer 18) Equivalent units for conversion units % CC units transferred out 10,000 100% 10,000 ending wip 8,000 60% 4,800 Equivalent units 14,800 opton c is the correct answer
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