Lindburg Company estimates that its overhead costs for 2011 will be $270,000 and output in units of

Question:

Lindburg Company estimates that its overhead costs for 2011 will be $270,000 and output in units of product will be 300,000 units.

Required

a. Calculate Lindburg’s predetermined overhead rate based on expected production.

b. If 24,000 units of product were made in March 2011, how much overhead cost would be allocated to the Work in Process Inventory account during the month?

c. If actual overhead costs in March were $21,000, would overhead be overapplied or underapplied and by how much?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

See More Books

Question Posted: Dec 07, 2011 06:10 AM

See More Questions

The Work in Process Inventory account of Phelan Corporation increased $23,000 during November 2010. Costs incurred during November included $24,000 for direct material, $126,000 for direct labor, and...
Nicholson Insurance Company estimates that its overhead costs for policy administration should amount to $80 for each new policy obtained and $2 per year for each $1,000 face amount of insurance...
The Work in Process Inventory account had a beginning balance of $16,200 on April 1. During April, the cost of direct materials used was $408,000 and direct labor cost assigned to production was...
a) How much would you have to invest at 6% p.a. on January 1, 2004, in order to accumulate $1791 on January 1, 2010. b) What is the present worth on January 1, 2003 of $1263 on January 1, 2010, if...
The range of a small set of measurements has traditionally been used as a measure of variability for x and R charts. Why isn't standard deviation used instead? And why are two charts necessary, an x...
An operator is defined not just by its action (what it does to the vector it is applied to) but its domain (the set of vectors on which it acts). In a finite-dimensional vector space the domain is...
Consider a dataset consisting of 20 observations with the following summary statistics: $\bar{x}=0, \bar{y}=9, s_{x}=1$, and $s_{y}=10$. You run a regression using using one variable and...
Peerless Windows is a major manufacturer and installer of windows into new homes. Currently, management has found that it has experienced a large number (about 15% of all orders placed) of customer...
Discuss the 4 types of dividends.Whichof the 4 isused most often, and why?What may happen to a company's share price when dividends areannounced orpaid?Why do you think this is so?
Pine Valley Furniture wants you to help design a data mart for analysis of sales. The subjects of the f data mart are as follows: Salesperson..Attributes: Salespersons, Years with PVFC,...
Calculating applied overhead Avery, Inc., estimates manufacturing overhead costs for the 2012 accounting period as follows. The company uses a predetermined overhead rate based on machine hours....
Kent Company and Trent Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Required...
(a) How many subsets of {1, 2, 3, . . . , 11} contain at least one even integer? (b) How many subsets of {1, 2, 3,. . . . . . . . . , 12} contain at least one even integer? (c) Generalize the results...
Snowy Corporation allows customers to pay with credit cards. The credit card company charges 2.5% of the total sale. If Snowy makes a sale for $40,000, how much revenue will be recorded? Show your...
Homenick Farm produces organic bananas and sells them at Schimmel Farmers' Market. Schimmel receives a 20% commission on each item sold, but Homenick is responsible for any items that remain unsold....
Year 1: Chip Corp had taxable income before taking a charitable contribution deduction of $25000. They made $4,000 in charitable donations that year. Year 2: Chip Corp had taxable income before...
A bakery corporation earns a total revenue of $157,000. Its expenses are $52,000. If the bakery needs to pay 21% corporate income tax, how much tax will they pay? Show your calculations.
The city of Austin needs to collect $2,000,000 in property tax revenues. The city estimates 5% of the tax revenues will not be collectible. How much in tax levies should the city of Austin for the...
1 kg of copper at 600C and 1 bar is immersed in 20 kg of water at 20C and 1 bar in a well-insulated container. Consider the system to be both the copper and the water. Calculate the change in...
Which, if any, of the dichloroethene molecules drawn in Data Table II (3.) (4.) and (5.) are geometric isomers? A. B. C. D. cis-1,2-dichloroethene and trans-1,2-dichloroethene...
Most metabolic pathways are relatively long and appear to be very complex. For example, there are 10 individual chemical reactions in glycolysis, converting glucose to pyruvate. Suggest a reason for...
For the following diagram, compute the interest rate at which the costs are equivalent to the benefits. 80 80 80 80 80 200 200 200
For the following diagram, compute the rate of return. lo Is 2 10 42.55
For the following diagram, compute the rate of return on the $3810 investment. 500 500 500 500 250 250 250 810
After you've completed this week's assigned reading, watch the video below. Next, respond to the Discussion questions underneath. Your first post should answer those questions and should be made by...
Factorize (x4 - 20x + 100)
Paragraph discussing food insecurity in the United States. What agencies in the federal government play an important role in ameliorating this situation? What groups of people are at particular risk?

Lindburg Company estimates that its overhead costs for 2011 will be $270,000 and output in units of

Question:

Step by Step Answer:

a Total expected overhead costs Predetermined overhead rate Total ...View the full answer

Fundamental Managerial Accounting Concepts

Students also viewed these Managerial Accounting questions