1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lorico [155]
3 years ago
15

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2

020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,200, direct labor $12,720, and manufacturing overhead $16,960. As of January 1, Job 49 had been completed at a cost of $95,400 and was part of finished goods inventory. There was a $15,900 balance in the Raw Materials Inventory account.
During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 134,200 and $ 173,800 , respectively. The following additional events occurred during the month.

1. Purchased additional raw materials of $ 99,000 on account.
2. Incurred factory labor costs of $ 77,000 . Of this amount $ 17,600 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $ 18,700 ; indirect labor $ 22,000 ; depreciation expense on equipment $ 13,200 ; and various other manufacturing overhead costs on account $ 17,600 .
4. Assigned direct materials and direct labor to jobs as follows.


Job No. Direct Materials Direct Labor
50 $ 11,000 $ 5,500
51 42,900 27,500
52 33,000 22,000

Required:
Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $924,000, direct labor costs of $770,000, and direct labor hours of 22,000 for the year.
Business
1 answer:
Amiraneli [1.4K]3 years ago
4 0

Answer:

Predetermined manufacturing overhead rate= $42 per direct labor hour

Explanation:

Giving the following information:

Estimated manufacturing overhead= $924,000

Estimated direct labor hours= 22,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

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

Predetermined manufacturing overhead rate= 924,000/22,000

Predetermined manufacturing overhead rate= $42 per direct labor hour

You might be interested in
Assume your employer offers a bonus of $7200. The only catch is that you must wait 6 years to take possession of the money. If y
a_sh-v [17]

Answer:

The minimum would be the present value of the bonus, which is 5,075.72 dollars

Explanation:

we have to discount the 7,200 dollar bonus at 6% discount rate for 6 years to get the present value of the bonus:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  7,200

time  6 years

rate  6% = 6/100 = 0.06

\frac{7200}{(1 + 0.06)^{6} } = PV  

PV   $ 5,075.7159

5 0
3 years ago
Which management career often requires a master’s degree?
Ray Of Light [21]
Chief Executives is the answer
8 0
3 years ago
Read 2 more answers
Imagine that your country takes in $100 million each year in tax money but chooses to spend $500 million on various services it
Ivan
Answer: B


Explanation:


I took the test
5 0
2 years ago
Read 2 more answers
The McDonaldization of society refers to the:
puteri [66]

Answer:

A)

Explanation:

obesity epidemic in American society increased uniformity and rationality of society

6 0
3 years ago
You have four items on your menu: a veggie sub for $7, a ham sub for $9, a turkey sub for $10, and a steak sub for $13. What is
brilliants [131]

Answer:

$9.5

Explanation:

The median is the middle number in a data. The data has to be arranged in either ascending or descending order.

In the case, our data price, which is $7, $9, $10, and $13. The data is already arranged in ascending order.

7,9,10,13

The median will be the mean of 2nd and 3rd digit

=(9+10)2

=$9.5

The median price is $9.5

5 0
3 years ago
Other questions:
  • Suppose that Larimer Company sells a product for $24. Unit costs are as follows:
    14·1 answer
  • Choose and describe a business that would have a significant amount of deferred revenue and share a photo of that business (or c
    5·1 answer
  • The Tuck Shop began the current month with inventory costing $19,000, then purchased inventory at a cost of $52,950. The perpetu
    6·1 answer
  • Ari, Inc. is working on its cash budget for December. The budgeted beginning cash balance is $23,000. Budgeted cash receipts tot
    6·1 answer
  • What's is an example of decision making in college
    7·1 answer
  • Define financial literacy and financial planning in your own word
    6·1 answer
  • Difference between real flows and monetary flows​
    9·1 answer
  • _____ has the ability to introduce methods in which government can use to assist in ensuring equity.
    11·1 answer
  • Farm and Country Bank provides credit to the farmers, ranchers, and other rural residents of its community. What government prog
    7·1 answer
  • A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receip
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!