At the beginning of the year, Kraisee Company estimated the following costs: Overhead: $720,000 Direct labor cost:

Question:

At the beginning of the year, Kraisee Company estimated the following costs:

Overhead: $720,000

Direct labor cost: $900,000

Kraisee uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, direct labor cost was $53,400.

Required:
1. Calculate the predetermined overhead rate for the year.
2. Calculate the overhead applied to production in September.

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

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

See More Books

Question Posted: Jul 18, 2022 03:23 AM

See More Questions

LearnCo Sales Budget LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus 36000 $8 $288,000 Deluxe Abacus 36000 12 432,000...
The rectangular plate shown weighs 75 lb and is held in the position shown by hinges at A and B and by cable EF. Assuming that the hinge at B does not exert any axial thrust, determine (a) the...
At the beginning of the year, Gaudi Company estimated the following: Overhead .............. $432,000 Direct labor hours ......... 90,000 Gaudi uses normal costing and applies overhead on the basis...
Bob drives off in Freds car mistakenly believing that it is his. Is this theft? Explain.
Horst and Nigel live in different countries. Possibly they have different preferences, and certainly they face different prices. They each consume only two goods, x and y. Horst has to pay 14 marks...
You have fit a linear regression model to a sample of 20 observations. The total sum of squares is 100 and the regression sum of squares is 80 . The estimate of the error variance is a. 1.5 b. 1.2 c....
As shown in Fig. P9.77, a vertical wind tunnel can be used for skydiving practice. Estimate the vertical wind speed needed if a 160-lb person is to be able to "float" motionless when the person (a)...
The financial statements of Ridgeview Employment Services, Inc., reported the following accounts (adapted, with dollar amounts in thousands except for par value): Prepare the stockholders equity...
Find the derivative of y with respect to the given independent variable. y=log 36ex-log6 x dy dx 11
1. Why is the operations function important in implementing the strategy of an organization? Explain why the changes put in place by Victoria Chen and her team could either hurt or help the bank. 2....
Kim Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows: Overhead: $823,000 Direct labor hours:...
Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery...
Assume a 1-Hz clock is applied to the seconds stage of the clock in Figure 10-17. The MOD-10 units of seconds counters terminal count (tc) output is shown in Figure 10-51. Draw a similar diagram...
How is the order in which items are shown on the balance sheet determined?
Compare and contrast the way the following items are treated or manifested in the human economy versus the natural ecosystems: a) energy, b) material cycling, and c) means (i.e., resources) and ends...
Describe an employee self-service system.
What is the balance sheet, and what information does it provide?
Followers of the New Institutional Economics insist that the choice of institutions to correct market failure should be primarily based on consideration of "transaction costs." These economists have...
Prove that the image of a span equals the span of the images. That is, where h: V W is linear, prove that if S is a subset of V then h([S]) equals [h(S)]. This generalizes Lemma 2.1 since it shows...
Explain why each of the following is either a private good or a public good: traffic lights, in line skates, a city park, a chicken salad sandwich, a tennis racket, national defense, a coastal...
Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions. a. Sold a warehouse for...
Consider the following independent events: a. Amortization of a patent b. Increase in accounts receivable c. Decrease in prepaid insurance d. Depreciation expense e. Increase in accounts payable f....
Consider the following independent activities. a. Payment of a cash dividend b. Amortization of intangible asset c. Gain on disposal of equipment d. Exchange of common stock for land e. Increase in...
Microsoft Corporation makes Xbox video game consoles. For Microsoft's financial year YYYY, please make use of the following provided information regarding the inventory of those Xbox consoles:...
3. You purchased a 3 year coupon bond one year ago. Its par value is $1,000 and coupon rate is 6%, paid annually. At the time you purchased the bond, its yield to maturity was 6.5%. Suppose you sell...
Discuss the following topic(s) in the forum and submit proof of your participation in the online discussions: 1) Professional certification and the practising accountants 2) Cost data and managerial...

At the beginning of the year, Kraisee Company estimated the following costs: Overhead: $720,000 Direct labor cost:

Question:

Step by Step Answer:

1 Predetermined Overhead ...View the full answer

Managerial Accounting The Cornerstone Of Business Decision Making

Students also viewed these Business questions