Homework Answers
a.
Budgeted direct labor hours = 75,000
Budgeted factory overhead = $525,000
Budgeted factory overhead rate= Budgeted factory overhead/ Budgeted direct labor hours
= 525,000/75,000
= $7 per direct labor hour
b.
Actual labor hours used = 77,500
Factory overhead applied = Actual labor hours used x Budgeted factory overhead rate
= 77,500 x 7
= $542,500
c.
Actual factory overhead = $558,000
Factory overhead applied = $542,500
Under applied factory overhead = Actual factory overhead- Factory overhead applied
= 558,000-542,500
= $15,500
Kindly comment if you need further assistance.
Thanks‼!
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The following information was gathered for Gibson Company for the year ended December 31, 2018. Direct...
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The following information pertains to Trenton Glass Works for
the year just ended.
Budgeted direct-labor cost: 75,000 hours (practical capacity) at
$16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 437,000
Actual manufacturing overhead:
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$
234,000
Property taxes
22,000
Indirect labor
82,000
Supervisory salaries
202,000
Utilities
58,000
Insurance
33,000
Rental of space
303,000
Indirect material (see data below)
80,000
Indirect material:
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49,000
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The following information pertains to Trenton Glass Works for
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Budgeted direct-labor cost: 75,000 hours (practical capacity) at
$16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 437,000
Actual manufacturing overhead:
Depreciation
$
234,000
Property taxes
22,000
Indirect labor
82,000
Supervisory salaries
202,000
Utilities
58,000
Insurance
33,000
Rental of space
303,000
Indirect material (see data below)
80,000
Indirect material:
Beginning inventory, January 1
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Purchases...
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Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing overhead cost Direct labor cost Direct labor hours Machine hours Estimated Value $ 599,000 $ 401.000 17,000 hours 8.000 hours Actual Value $ 660.000 $ 455,000 18.500 hours 9.000 hours Required: 1. Based on the company's current allocation base (direct labor hours), compute the following: a. Predetermined overhead rate. (Round your answer to 2...
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2. Gonzalez, Inc. manufactures stereo speakers in two factories; one in Vandalia, Illinois and another in Merced, California. The Vandalia factory uses direct labor hours (DLHs) for its overhead rate and the Merced factory uses machine-hours (MHs) for its overhead rate. Information related to both plants for last year is presented below: Estimated manufacturing overhead Estimated amount of allocation base Predetermined overhead rate.. Actual amount of allocation base....... Actual manufacturing overhead Applied manufacturing overhead Under or overapplied overhead (indicate the...
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