Question: Manufacturing Overhead BB Ltd allocates manufacturing overhead to work in process based on direct labor hours. On 1st January of the current year, there were

Manufacturing Overhead

BB Ltd allocates manufacturing overhead to work in process based on direct labor

hours. On 1st January of the current year, there were no balance in work in process of

finished goods inventories.

The following estimates were included in the budget for the current year:

Total projected manufacturing overhead $300,000

Total projected direct labor hours 40,000

During January, the firm worked on the following production jobs:

KJ Ltd: 1,600 direct labor hours

DX Ltd: 2,400 direct labor hours

SK Ltd: 1,000 direct labor hours

Actual overhead incurred by BB Ltd amounted to $30,000.

Required:

1. Calculate the company's predetermined overhead rate for the year.

2. How much manufacturing overhead was applied to production?

3. Calculate and journalize the overapplied or underapplied overhead

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Complete Form 941 for the 4th quarter for TCLH Industries (which is located at 202 Whitmore Avenue, Durham, NC 27701; Employer Identification #44-4444444). Assume that all necessary deposits were...

Q:

Bahubali Ltd allocates manufacturing overhead to work in process based hours. On 1* January of the current year, there were no balance in wor finished goods inventories. The following estimates were...

Q:

Question A Rahul Ltd allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance in work in process of finished goods...

Q:

Bahubali Ltd allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance in work in process of finished goods...

Q:

Bahubali Ltd allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance in work in process of finished goods...

Q:

Bahubali Ltd allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance in work in process of finished goods...

Q:

Bahubali LTD allocates manufacturing overhead to work in process based on direct labour hours. On 1st January of the current year, there were no balance in work in process of finished goods...

Q:

Account answer Hl5017 Managerial Accounting Week 3 Tutorial Questions Question 1 For each of the following companies, indicate whether job or process costing is more appropriate and explain your...

Q:

Question 3 Outdoor Goods Pty Ltd allocates manufacturing overhead to work in process based on machine hours. On 1 January of the current year, there were no balances in work in process or finished...

Q:

Please Complete step 8, you dont have to do the other steps. Please provide me with the correct answers to all the questions on step 8 Step 1 You work for Thunderduck Custom Tables Inc. This is the...

Q:

how do i solve the following problems Individual Homework Assignment #3 Summer 2019 Page 2 of 10 Problem #1: Who's Better? (24 points) You recently analyzed the GAAP financial statements of two...

Q:

Phone-Phriends charges $37 for a text-message plan with 400 text messages included. If the customer goes over the 400 messages, the cost is $0.12 per text message. They have an unlimited plan which...

Q:

From what population should a sample be selected to test the completeness of recorded sales? Explain your choice.

Q:

Find a solution t o d A d t = 9 A i f A ( 0 ) = 2 . A ( t ) = help ( f o r m u l a s )

Q:

A product passes through three processes to completion. In the month of June, the costs of production were as follows: Cost Element Total Costs Processes 1 2 3 Additional Materials 8,432 2,000 3,020...

Q:

A 90-day, 12% note for $20,000, dated April 10, is received from a customer on account. If the note is discounted at 15% on May 20, calculate the days in the discount period?

Q:

KK Ltd manufactures a product that passes through two distinct stages i.e A and B. The following data relates to the month of April 2017. Process A; Amount of materials introduced to the process...

Q:

Sweet Pea Repeats is a childrens resale store for cost-conscious parents of children ages 0 to 10 years. Sweet Pea Repeats will focus on the buying and selling of high-quality, new and gently used...

Q:

A 60-day, 12% notes for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at 15%, what is the amount of interest revenue or expense to be recorded by...

Q:

20. Which of the flowing statements is TRUE regarding Secondary data? Group of answer choices Will generally cost more than primary data Will generally take longer time to collect that primary data....

Q:

Make eye contact when talking and listening

Q:

Do not go, wait until I come

Q:

Pay him, do not wait until I sign