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...
-
A particle is thrown vertically upwards into the air. Its height s (in m) above the ground after time t (in seconds) is given by s = 25t 5t 2 (a) What height does the particle reach? (b)What is its...
-
Although the state diagram seems more convenient than the state table when we are dealing with a finite state machine as the input strings get longer and the sizes of S,F and O increase, the state...
-
USA Today reports that the average expenditure on Valentine's Day is $100.89. Do male and female consumers differ in the amounts they spend? The average expenditure in a sample survey of 40 male...
-
A fleet of 100 taxis is divided into two groups of 50 cars each to determine whether premium gasoline reduces maintenance costs. Premium unleaded fuel is used in group A, while regular unleaded fuel...
-
Solve the linear programming model formulation in Problem 41 for Island Publishing Company graphically. a. Determine the sensitivity range for the advertising revenue generated by the real estate...
-
This is all the work provided. Show work es Problem A-2 (Algo) Solve the following problem with Excel Solver: (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to...
-
Sketch the region enclosed by the given curves. Decide whether to integrate with respect to x or y. Then find the area of the region. 2y = 4x, y = 3, and 2y + 4x = 8
-
You have invested $100,000 in a badly built house. For $20,000 invested today, you can fix up the house and sell it 1 year from today for $90,000. As an alterna- tive, you can sell the house today...
-
Is "word of mouth" marketing really valuable? Explain. Please include at least 2 examples illustrating the value of "word of mouth" marketing (examples may be personal examples or published examples).
-
Described below are four situations, which have arisen at four unrelated audit clients of your firm. The year end for each client is 31 August 2019. (a) Daston Sdn. Bhd. (Daston) During the external...
-
what ways do modern enterprises leverage iterative methodologies such as Six Sigma and Lean Management to systematically identify inefficiencies, streamline processes, and cultivate a culture of...
-
what extent does the ethos of Continuous Improvement engender a mindset of proactive problem-solving and iterative optimization, thereby engendering a virtuous cycle of refinement that propels...
-
The activity of the seric PDE enzyme is studied, depending on different factors. The results are expressed in international unit per liter of serum. For two groups of women, pregnant or not, the...
-
Choose two matrices A and B with dimension 2 x 2. Calculate det A, det B, and det (AB). Repeat this process until you are able to discover how these three determinants are related. Summarize your...
-
Java Inc. is a distributor and processor of a variety of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. Java Inc....
-
On January 31, 2012, the manufacturing facility of a medium-sized company was severely damaged by an accidental fire. As a result, the company's direct materials, work in process, and finished goods...
-
Rapid Delivery Service reports the following costs and expenses in June 2012: Instructions Determine the total amount of (a) delivery service (product) costs and (b) period costs. Indirect materials...
-
Let \(A\) and \(B\) be disjoint events with \(P(A)=0.3\) and \(P(B)=0.45\). Determine the probabilities \(P(A \cup B), P(\overline{A \cup B}), P(\bar{A} \cup \bar{B})\), and \(P(\bar{A} \cap B)\).
-
Let \(P(A \cap \bar{B})=0.3\) and \(P(\bar{B})=0.6\). Determine \(P(A \cup B)\).
-
Check whether for 3 arbitrary random events \(A, B\), and \(C\) the following constellations of probabilities can be true: (1) \(P(A)=0.6, P(A \cap B)=0.2\), and \(P(A \cap \bar{B})=0.5\), (2)...
Study smarter with the SolutionInn App