homework chapter 20 & 22

(a) Your answer is correct. Calculate the predetermined overhead rate for 2022, assuming Wildhorse Company estimates total manufacturing overhead costs of $1,092,000, direct labor costs of $910,000, and direct labor hours of 26,000 for the year. Predetermined overhead rate 120 % TULI (a) Your answer is correct. Calculate the predetermined overhead rate for 2022, assuming Wildhorse Company estimates total manufacturing overhead costs of $1,092,000, direct labor costs of $910,000, and direct labor hours of 26,000 for the year. Predetermined overhead rate 120 % TULI Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $26,000, direct labor $15,600, and manufacturing overhead $20,800. As of January 1, Job 49 had been completed at a cost of $117,000 and was part of finished goods inventory. There was a $19,500 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $158,600 and $205,400, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $117,000 on account. 2. Incurred factory labor costs of $91,000. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $15,600; and various other manufacturing overhead costs on account $20,800. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $13,000 $6,500 51 50,700 32,500 52 39,000 26,000 5. Assigned indirect materials of $22,100 and indirect labor of $26,000. Your answer is partially correct. Prepare the journal entry to record the completion of any job(s) during the month. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Finished Goods Inventory 217100 Factory Wages Payable 217100 Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $2,000,000 Selling expenses-variable $109,000 Direct materials 550,000 Selling expenses-fixed 58,000 Direct labor 400,000 Administrative expenses-variable 21,000 Manufacturing overhead-variable 420,000 Administrative expenses-fixed 52,000 Manufacturing overhead-fixed 190,000 (c) Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio % Margin of safety ratio %