Hernandez Machine Parts Company selected a single cost-allocation base in each department, machine hours in machining...
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Hernandez Machine Parts Company selected a single cost-allocation base in each department, machine hours in machining and direct-labor cost in assembly, for applying overhead. Hernandez prepared the following 20X0 data: B (Click the icon to view the manufacturing-overhead budget.) (Click the icon to view the overhead rates for the two departments.) (Click the icon to view the total factory overhead. applied calculation.) Requirement 1. Determine the formula, then compute the budgeted overhead application rate for the factory using the budgeted data. (Round your answer to five decimal places.) X Requirement 2. If Hernandez used 70,400 machine hours during 20X0, what was the total factory overhead applied to products? Determine the formula, then compute the total factory overhead applied. (Enter the rate to five decimal places, X.XXXXX. Round your answer to the nearest whole dollar.) X Suppose Hernandez decided to use only one overhead cost pool for both departments with machine hours as the single cost-allocation base. The machining department had budgeted 70,000 machine-hours in 20X0. Read the requirements. In requirement 2 (one overhead application rate is used), the overhead is used is the budgeted machine hours. Budgeted overhead application rate Requirement 3. The applied factory overhead based on separate application rates for the machining and assembly departments was $372,580. Explain why this amount is different than the applied amount from requirement 2. by $ This is due to the amount of machine hours Total factory overhead applied When separate overhead application rates are used, the total applied overhead is $372,580. This is $ Print Total factory overhead applied Suppose Hernandez had used 70,400 machine hours in machining and incurred $189,000 of direct-labor cost in assembly during the year. Machining: 70,400 actual machine hours x $3.95 Assembly: $189,000 actual direct-labor cost x 50% Total factory overhead applied Done than budgeted and is $ 278,080 94,500 $ 372,580 Manufacturing-overhead budget Indirect labor Supplies Utilities Repairs Factory rent Supervision Depreciation on equipment Insurance, property taxes, etc.. Total Machining Assembly $ 75,100 $ 36,200 8,600 2,500 20,300 7,100 10,200 3,100 10,200 6,300 42,400 35,800 102,400 9,500 7,300 2,500 276,500 $ 103,000 $ X Overhead rates Budgeted manufacturing overhead Budgeted machine hours Budgeted direct-labor cost Budgeted overhead rate, per machine hour: $276,500/70,000 = Budgeted overhead rate, per direct labor dollar: $103,000 / $206,000 = Machining Assembly 276,500 $ 103,000 70,000 $ Year 20X0 6A 3.95 $ 206,000 50 % Hernandez Machine Parts Company selected a single cost-allocation base in each department, machine hours in machining and direct-labor cost in assembly, for applying overhead. Hernandez prepared the following 20X0 data: B (Click the icon to view the manufacturing-overhead budget.) (Click the icon to view the overhead rates for the two departments.) (Click the icon to view the total factory overhead. applied calculation.) Requirement 1. Determine the formula, then compute the budgeted overhead application rate for the factory using the budgeted data. (Round your answer to five decimal places.) X Requirement 2. If Hernandez used 70,400 machine hours during 20X0, what was the total factory overhead applied to products? Determine the formula, then compute the total factory overhead applied. (Enter the rate to five decimal places, X.XXXXX. Round your answer to the nearest whole dollar.) X Suppose Hernandez decided to use only one overhead cost pool for both departments with machine hours as the single cost-allocation base. The machining department had budgeted 70,000 machine-hours in 20X0. Read the requirements. In requirement 2 (one overhead application rate is used), the overhead is used is the budgeted machine hours. Budgeted overhead application rate Requirement 3. The applied factory overhead based on separate application rates for the machining and assembly departments was $372,580. Explain why this amount is different than the applied amount from requirement 2. by $ This is due to the amount of machine hours Total factory overhead applied When separate overhead application rates are used, the total applied overhead is $372,580. This is $ Print Total factory overhead applied Suppose Hernandez had used 70,400 machine hours in machining and incurred $189,000 of direct-labor cost in assembly during the year. Machining: 70,400 actual machine hours x $3.95 Assembly: $189,000 actual direct-labor cost x 50% Total factory overhead applied Done than budgeted and is $ 278,080 94,500 $ 372,580 Manufacturing-overhead budget Indirect labor Supplies Utilities Repairs Factory rent Supervision Depreciation on equipment Insurance, property taxes, etc.. Total Machining Assembly $ 75,100 $ 36,200 8,600 2,500 20,300 7,100 10,200 3,100 10,200 6,300 42,400 35,800 102,400 9,500 7,300 2,500 276,500 $ 103,000 $ X Overhead rates Budgeted manufacturing overhead Budgeted machine hours Budgeted direct-labor cost Budgeted overhead rate, per machine hour: $276,500/70,000 = Budgeted overhead rate, per direct labor dollar: $103,000 / $206,000 = Machining Assembly 276,500 $ 103,000 70,000 $ Year 20X0 6A 3.95 $ 206,000 50 %
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From the information provided to answer Requirement 1 we need to determine the budgeted overhead application rate for the factory using the budgeted d... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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