p17-28a accounting manufacturing overhead

Project Description:

p17-28a accounting manufacturing overhead
white woods manufactures jewelry boxes. the primary materials (wood, brass, and
glass) and direct labor are traced directly to the products. manufacturing overhead
costs are allocated based on machine hours. data for 2012 follow:

estimated (budget) actual

3 4
machine hours . . . . . . . . . . . . . . . . . . . . . . . . . . … 25,000 hours 32,100 hours

maintenance labor (repairs to equipment) . . . . . . $12,000 $28,500

plant supervisor’s salary . . . . . . . . . . . . . . . . . . . . 47,000 48,000

screws, nails, and glue . . . . . . . . . . . . . . . . . . . . . 24,000 45,000

plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000 96,850

freight out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000 46,500

depreciation on plant and
equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,000 83,000

advertising expense . . . . . . . . . . . . . . . . . . . . . . . 43,000 54,000


requirements
1. compute the predetermined manufacturing overhead rate.
2. post actual and allocated manufacturing overhead to the manufacturing overhead
t-account.
3. close the under- or over-allocated overhead to cost of goods sold.
4. the predetermined manufacturing overhead rate usually turns out to be inaccurate.
why don’t accountants just use the actual manufacturing overhead rate?
Skills Required:
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Price Type: Fixed

Project Budget: $0 to $10
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