Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $378,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $285,000. b. Raw materials used in production (all direct materials), $270,000. c. Utility bills incurred on account, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (950 hours) Indirect labor Selling and administrative salaries $315,000 $ 107,000 $ 195,000 e. Maintenance costs incurred on account in the factory, $71,000 f. Advertising costs incurred on account, $153,000. g. Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $? j. Cost of goods manufactured for the year, $940,000. k. Sales for the year (all on account) totaled $2,050,000. These goods cost $970,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials $ 47,000 Work in Process $ 38,000 Finished Goods $ 77,000 Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $378,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $285,000. b. Raw materials used in production (all direct materials), $270,000. c. Utility bills incurred on account, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities). d. Accrued salary and wage costs: Direct labor (950 hours) Indirect labor Selling and administrative salaries $315,000 $ 107,000 $ 195,000 e. Maintenance costs incurred on account in the factory, $71,000 f. Advertising costs incurred on account, $153,000. g. Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment). h. Rental cost incurred on account, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities). i. Manufacturing overhead cost was applied to jobs, $? j. Cost of goods manufactured for the year, $940,000. k. Sales for the year (all on account) totaled $2,050,000. These goods cost $970,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were: Raw Materials $ 47,000 Work in Process $ 38,000 Finished Goods $ 77,000
Expert Answer:
Answer rating: 100% (QA)
To calculate the manufacturing overhead cost applied to jobs we need to use the predetermined overhead rate and the actual direct laborhours incurred ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies...
-
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system and applies...
-
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. (The Norwegian currency is the krone, which is denoted by Nkr.)...
-
On April 29, 2016, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1.2 million. Amazon Corporation has assets with a fair market value of $1.4...
-
A weir 1.05 min height is built across the floor of a 4-rn-wide rectangular channel. If the water depth just upstream of the weir is 1.52 m, what is the water depth on the crest and the discharge in...
-
In the course of the synthesis of the sex attractant of the grape berry moth, both the cis and trans isomers of the following alkene were needed. (a) Outline a synthesis of the cis isomer of this...
-
Prim launched in mid-2013, after passing through the prestigious Y Combinator business accelerator program earlier that year. Heres how Prims laundry service worked. Customers bagged their laundry...
-
1. What was the most important reason for Lehman Brothers failure? 2. What is leverage and why is it so important? 3. Prepare the journal entries for a Repo 105 transaction sequence for $1 million in...
-
estion 45: Which key lets you select multiple worksheets in a workbook? swer: (Shift) 13 (Tab) O (Alt) O (Enter)
-
Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date? a. Dividend statement, b. Creditor's statement, c. Balance sheet, d....
-
Identify the causes of the difference between the ending cash balance in a business' records and the ending cash balance reported on its bank statement.
-
What are non-current liabilities? Give several examples.
-
What is the eco-efficiency ratio formula?
-
What is life cycle analysis (LCA) and why is it important for sustainable products and processes?
-
Explain how to calculate the quick ratio and what it is used for.
-
Write a paper describing in detail emotional intelligence, its background, key researchers, why it is important for managers to possess, and how one can increase their emotional intelligence.
-
The power company must generate 100 kW in order to supply an industrial load with 94 kW through a transmission line with 0.09 resistance. If the load power factor is 0.83 lagging, find the...
-
Calculate the P(Gain) of each asset class (see above) and compare each. Which is most efficient?
-
Calculate and graphically demonstrate the risk of each asset; see above.
-
Graph the residential and commercial year-over-year time series. Does residential lead commercial? By how many months? Is the relationship statistically significant?
Study smarter with the SolutionInn App