Use the following information to answer the next question:Estimated manufacturing overhead$520,000Estimated machine hours16,000Actual machine hours worked15,000Actual overhead costs incurred: Indirect materials$180,000 Indirect labour$135,000 Utilities$ 40,000 Insurance$ 20,000 Rent$150,000If the company uses a predetermined overhead rate to apply overhead, manufacturing overhead applied would be:Question 2Select one:a.$487,500b.$520,000c.$525,000d.$554,667
Question
Use the following information to answer the next question:Estimated manufacturing overhead180,000 Indirect labour 40,000 Insurance150,000If the company uses a predetermined overhead rate to apply overhead, manufacturing overhead applied would be:Question 2Select one:a.520,000c.554,667
Solution
The predetermined overhead rate is calculated by dividing the estimated manufacturing overhead by the estimated machine hours.
So, Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine hours = 32.5 per machine hour
Then, to find the manufacturing overhead applied, you multiply the predetermined overhead rate by the actual machine hours worked.
So, Manufacturing overhead applied = Predetermined overhead rate * Actual machine hours worked = 487,500
Therefore, the answer is a. $487,500.
Similar Questions
Estimated manufacturing overhead$450,000Estimated direct labor hours150,000Actual manufacturing overhead$405,000Actual direct labor hours180,000 Based on this information, the predetermined overhead rate per direct labor hour is $. (Enter your answer as a whole number.)
Fill in the Blank QuestionFill in the blank question.A manufacturing company has the following budgeted overhead costs: Indirect materials: $0.50 per unit; Utilities: $0.25 per unit; Supervisory salaries: $60,000; Building rent: $80,000. If the company expects to produce 200,000 units using 100,000 hours of direct labor, the standard overhead rate will be $ per direct labor hour.
Given budgeted overhead cost of $250,000 and budgeted machine-hours of 125,000, the overhead rate is $ per machine-hour. (Enter your answer as a whole number.)
Multiple Choice Question Estimated manufacturing overhead$500,000Estimated direct labor cost$250,000Actual manufacturing overhead$720,000Actual direct labor cost$300,000 Based on this information, the predetermined overhead rate per direct labor dollar is:Multiple choice question.$2.88$2.00$1.67 $2.40
implex Company has the following estimated costs for next year: Direct materials $15,000Direct labour 55,000Sales commissions 75,000Salary of production supervisor 35,000Indirect materials 5,000Advertising expenses 11,000Rent on factory equipment 16,000Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, what will be the overhead rate per hour?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.