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FinnZ [79.3K]
3 years ago
12

For​ 2018, Franklin Manufacturing uses machineminushours as the only overhead costminusallocation base. The estimated manufactur

ing overhead costs are $ 340,000 and estimated machine hours are 40,000. The actual manufacturing overhead costs are $ 450,000 and actual machine hours are 50,000. What is the difference between the budgeted and the actual manufacturing overhead using job​ costing? (Round interim and the final answer to the nearest​ cent.)
Business
1 answer:
mina [271]3 years ago
7 0

Answer:

Over/under allocation= $25,000 underallocated

Explanation:

Giving the following information:

Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base.

The estimated manufacturing overhead costs are $ 340,000 and the estimated machine hours are 40,000. The actual manufacturing overhead costs are $ 450,000 and actual machine hours are 50,000.

First, we need to determine the MOH rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= 340000/40000= $8.5 per machine hour

Now, we can calculate the allocated MOH:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base= 8.5* 50000= $425,000

Over/under allocation= real MOH - allocated MOH= 450,000 - 425,000= 25000 underallocated

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Self-Analysis
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4 0
2 years ago
Pam and Marian have formed a limited partnership in the state of Massachusetts. Their business does well, and as it continues to
Serga [27]

If Pam and Marian are successful in their application to New Hempshire and Connecticut, they will get a Certificate of Registration.

<h3>What is a certificate of registration?</h3>

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If Pam and Marian are cleared by the Connecticut and New Hampshire states, they will get Certificates of Registration.

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8 0
2 years ago
The predetermined overhead rate for manufacturing overhead for 2020 is $4.00 per direct labor hour. Employees are expected to ea
timofeeve [1]

Answer:

$60,000

Explanation:

The computation of the estimated manufacturing overhead is shown below:

Estimated manufacturing overhead = Direct labor hours × predetermined overhead rate

where,

Direct labor hours = Total Direct labor cost ÷ Cost per hour

                              = ($100,000 × 75%) ÷ ($5)

                              = 15,000 direct labor hours

Now the estimated manufacturing overhead equal to

= 15,000 direct labor hours × $4

= $60,000

3 0
3 years ago
White Company's wages payable account had a beginning balance of $3,757 and an ending balance of $2,070. During the year, wages
borishaifa [10]

Answer:

the amount paid during the year is $16,875

Explanation:

The computation of the amount paid during the year is shown below:

Opening Balance $3,757

Add: Wages expense $15,188

Less: Closing Balance -$2,070

Amount Paid $16,875

Hence, the amount paid during the year is $16,875

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0
3 years ago
According to theory, sales employees compensated based on commissions should be more motivated than if paid a straight hourly wa
andrezito [222]

Answer:

Expectancy Theory

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8 0
3 years ago
Read 2 more answers
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