| Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 33,000 direct labor-hours would be required for the periods estimated level of production. The company also estimated $531,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $662,995 and its actual total direct labor was 33,500 hours. | Required: | | 1,,Compute the company's predetermined overhead rate for the year.(Round your answer to 2 decimal places.) 2, | Compute the underapplied or overapplied overhead for the year.(Round your intermediate calculations to 2 decimal places.) | | | | | 2, | Mickley Companys predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500: |
3, | The following cost data relate to the manufacturing activities of Chang Company during the just completed year: |
4, | Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: |
| | | | Machine-hours | | 89,000 | | Fixed manufacturing overhead cost | $ | 1,275,000 | | Variable manufacturing overhead per computer-hour | $ | 3.30 | | During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the companys warehouse. The companys cost records revealed the following actual cost and operating data for the year: |
| | | | | Machine-hours | | 50,000 | | | Manufacturing overhead cost | $ | 961,000 | | | 1. | Compute the companys predetermined overhead rate for the year.(Round your answer to 2 decimal places.) |
| | | | Manufacturing overhead costs incurred: | | | | Indirect materials | $ | 16,900 | | Indirect labor | | 149,000 | | Property taxes, factory | | 9,900 | | Utilities, factory | | 89,000 | | Depreciation, factory | | 316,900 | | Insurance, factory | | 11,900 | | | Total actual manufacturing overhead costs incurred | $ | 593,600 | | | Other costs incurred: | | | | Purchases of raw materials (both direct and indirect) | $ | 419,000 | | Direct labor cost | $ | 79,000 | | Inventories: | | | | Raw materials, beginning | $ | 21,900 | | Raw materials, ending | $ | 31,900 | | Work in process, beginning | $ | 41,900 | | Work in process, ending | $ | 71,900 | | The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $28 per machine-hour. A total of 21,600 machine-hours was recorded for the year. |
| 1. | Compute the amount of underapplied or overapplied overhead cost for the year. | | | | | | Direct materials | $240 | | Direct labor | $165 | | 1. | What is the total manufacturing cost assigned to Job A-500? | | | | |
Study Help