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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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LO 6.1TyeDye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to manufacture the Party Line and
balu736 [363]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

It takes 80,900 direct labor hours to manufacture the Party Line and 93,500 direct labor hours to manufacture the Holiday Line. Overhead consists of $225,000 in the machine setup cost pool and $149,960 in the packaging cost pool.

We need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (225,000 + 149,960) / (80,900 + 93,500)= $2.15 per direct labor hour

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3 years ago
Alpha Division had the following information: Average operating asset base in Alpha Division $500,000 Operating income in Alpha
ExtremeBDS [4]

Answer:

15.79%

Explanation:

The computation of the return on investment is shown below:

Return on investment  = Operating Income ÷  New operating asset base

where,

Operating income is $60,000

And, the new operating asset is

= $500,000 - $120,000

= $380,000

So, the return on investment is

= $60,000 ÷ $380,000

= 15.79%

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5 0
3 years ago
The Anti-Federalists wanted to
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They wanted to ensure that the bill of rights was included in the constitution.
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The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable fac
In-s [12.5K]

Answer:

the total budgeted factory overhead for November is : 2) $110,000.

the budgeted direct labor hours for December must be : 3) 9,000 hours.

total budgeted factory overhead per direct labor hour is : 1) $14.38

Explanation:

To determine the budgeted factory overhead for November, prepare a budgeted factory overhead for November as follows :

<u>November</u>

Budgeted Variable factory overhead ($5.00 × 7,000 hours)  = $35,000

Budgeted Fixed factory overhead                                             = $75,000

Total budgeted factory overhead                                              = $110,000

<u>December</u>

Total Cash Disbursements                                                         = $105,000

Less Budgeted Fixed factory overhead  ($75,000 - $15,000) =  $60,000

Budgeted Variable factory overhead                                        =   $45,000

Therefore, budgeted direct labor hours = $45,000 / $5.00

                                                                  = 9,000 hours.

<u>December</u>

Budgeted Variable factory overhead ($5.00 × 8,000 hours)  = $40,000

Budgeted Fixed factory overhead                                             = $75,000

Total budgeted factory overhead                                              = $115,000

Therefore, total budgeted factory overhead per direct labor hour = $115,000 / 8,000 hours = $14.375

Which is $14.38 (rounded)

                                                               

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