Crane Limited is a company that produces machinery to customer orders, using a normal job-order cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Crane Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,810,000 905,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $111,000, and 1819C, with total direct labour charges of $390,800. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $229,000, and for 1819C they amounted to $420,200. Total charges to the Manufacturing Overhead Control account for the year were $902,500, and direct labour charges made to all jobs amounted to $1,582,600, representing 247,800 direct labour hours. There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory account showed a balance of $560,760. Sales for the year amounted to $6,205,300; cost of goods sold totalled $3,644,940; and sales, general, and administrative expenses were $1,850,700. The above amounts for inventories and the cost of goods sold have not been adjusted for any over-or under-application of manufacturing overhead to production. It is the company's practice to allocate any over-or under-applied overhead to inventories and the cost of goods sold. (a) Calculate the under- or over-applied manufacturing overhead for 2022. Manufacturing overhead $ Crane Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,810,000 905,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $111,000, and 1819C, with total direct labour charges of $390,800. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $229,000, and for 1819C they amounted to $420,200. Total charges to the Manufacturing Overhead Control account for the year were $902,500, and direct labour charges made to all jobs amounted to $1,582,600, representing 247,800 direct labour hours. There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory account showed a balance of $560,760. Sales for the year amounted to $6,205,300; cost of goods sold totalled $3,644,940; and sales, general, and administrative expenses were $1,850,700. The above amounts for inventories and the cost of goods sold have not been adjusted for any over-or under-application of manufacturing overhead to production. It is the company's practice to allocate any over-or under-applied overhead to inventories and the cost of goods sold. (a) Calculate the under- or over-applied manufacturing overhead for 2022. Manufacturing overhead $
Expert Answer:
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
Posted Date:
Students also viewed these accounting questions
-
Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead...
-
Why is an objects internal data usually hidden from outside code?
-
Determine whether each of the following collections of sets is a partition for the given set A. If the collection is not a partition, explain why it fails to be. (a) A = {1, 2, 3, 4, 5, 6, 7, 8}; A1...
-
Identify whether the following accounts would be included on a postclosing trial balance. Post-Closing Trial Balance Account Title Yes No 0. Example: Cash a Service Revenue b. Prepaid Insurance c....
-
Compute the following items for the statement of cash flows: a. Beginning and ending Retained Earnings are \($45,000\) and \($70,000,\) respectively. Net income for the period is \($60,000.\) How...
-
Listed below are altitudes (thousands of feet) and outside air temperatures (degrees Fahrenheit) recorded by the author during Delta Flight 1053 from New Orleans to Atlanta. Is there sufficient...
-
Part II: Decision Analysis A customer has approached XYZ bank for a $50,000 one-year loan at 12% interest. If the bank does not approve the loan, the $50,000 will be invested in bonds that earn a 4%...
-
To what extent should personal religious beliefs impact our decisions about business ethics? To what extent do your personal religious (or non-religious) beliefs about life impact your sense of...
-
Explain how tax-benefit linkages, spillovers, and economies of scale influence fiscal federalism (that is, what each of those implies in terms of the optimal division of responsibilities across the...
-
Assume the carrying capacity of the earth is 9 billion. Use the 1960s peak annual growth rate of 2.1% and population of 3 billion to predict the base growth rate and current growth rate with a...
-
Two identical charges q are separated by distance 2d and fixed at this position. Third charge -q is revolving in a circle of radius x in plane perpendicular to line joining charges whose centre...
-
Who and what defines professionalism? As emerging leaders in the field, it will be your role to set the standard - the bar - for those who follow in your footsteps. As with children, modeling for...
-
Define moral hazard. Does it apply only to consumers? If your demand for health care services is more or less elastic, will there be more or less (potential) moral hazard effect for a given...
-
Key Chemicals (as it will be referred to here) is a Swiss company. After a 30-year period of steady growth, based on the acquisition of other businesses, the original Vevey-based distributor of...
-
Match the following. Answers may be used more than once: Measurement Method A. Amortized cost B. Equity method C. Acquisition method and consolidation D. Fair value method Reporting Method 1. Less...
-
Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2012: (a) Rank the four departments based on their return...
-
Chow Industries' projected sales budget for the next four months is as follows: Beginning inventory for the year is 21,000 units. Beginning inventory for each month should be 30% of the current...
-
Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2012, Job No. 50 was the only job in process. The costs...
-
Last year during the week of July 4th, Murrysville Regional Hospital reported that they treated 264 patients for fireworks-related injuries.
-
During a recent year, the average U.S. diners spent a month on food prepared outside the home was \($144\) . What is meant by a biased sample? determine whether descriptive or inferential statistics...
-
The number of stores a person visits on a shopping trip Name and define the four types of measurement levels used in statistics. determine whether the data are qualitative or quantitative.
Study smarter with the SolutionInn App