Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours...
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Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Direct labor cost Manufacturing overhead cost Estimated Value $ 584,000 Actual Value $ 645,000 $ 386,000 $ 440,000 15,500 hours 6,500 hours 17,000 hours 7,500 hours Direct labor hours Machine hours Required: 1. Based on the company's current allocation base (direct labor hours), compute the following: a. Predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over- or underapplied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. 2. If the company had used direct labor dollars (instead of direct labor hours) as its allocation base, compute the following: a. Predetermined overhead rate. Note: Round your answer to 2 decimal places, i.e. 3.63%. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over- or underapplied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. 3. If the company had used machine hours (instead of direct labor hours) as its allocation base, compute the following: a. Predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over- or underapplied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. 4. Based on last year's data alone, which allocation base would have provided the most accurate measure for applying manufacturing overhead costs to production? Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Direct labor cost Manufacturing overhead cost Estimated Value $ 584,000 Actual Value $ 645,000 $ 386,000 $ 440,000 15,500 hours 6,500 hours 17,000 hours 7,500 hours Direct labor hours Machine hours Required: 1. Based on the company's current allocation base (direct labor hours), compute the following: a. Predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over- or underapplied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. 2. If the company had used direct labor dollars (instead of direct labor hours) as its allocation base, compute the following: a. Predetermined overhead rate. Note: Round your answer to 2 decimal places, i.e. 3.63%. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over- or underapplied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. 3. If the company had used machine hours (instead of direct labor hours) as its allocation base, compute the following: a. Predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over- or underapplied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. 4. Based on last year's data alone, which allocation base would have provided the most accurate measure for applying manufacturing overhead costs to production?
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Answer To solve this problem we need to follow the given instructions and compute the required values based on the provided data 1 Based on the compan... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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