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Alja [10]
3 years ago
15

Gitano Products operates a job-order costing system and applies overhead cost tojobs on the basis of direct materialsused in pro

duction(noton the basis of raw materialspurchased). Its predetermined overhead rate was based on a cost formula that estimated$119,600 of manufacturing overhead for an estimated allocation base of $92,000 directmaterial dollars to be used in production. The company has provided the following data forthe just completed year:________.
Purchase of raw materials $140,000
Direct labor cost $89,000
Manufacturing overhead costs
Indirect labor $106,300
Property taxes $8,000
Depreciation of equipment $18,000
Maintenance $15,000
Insurance $8,200
Rent. building $39,000
Beginning Ending
Raw Materials $24,000 $17,000
Work in Process $48,000 $35,000
Finished Goods $69,000 $57,000
Required:
1. Compute the predetermined overhead rate for the year.
PREDETERMINED OVERHEAD RATE _____%2. Compute the amount of underapplied or overapplied overhead for the year._____ overhead _____
Business
1 answer:
IgorLugansk [536]3 years ago
6 0

Answer:

$3,400

Explanation:

The computation of predetermined overhead rate for the year is shown below:-

Predetermined Overhead Rate = Estimated Manufacturing Overhead ÷ Estimated Allocation Base × 100

= $119,600 ÷ $92,000 × 100

= 130%

2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-

Overhead Applied = (Opening Value of Direct Material + Purchase of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate

= ($24,000 + $140,000 - $17,000) × 130%

= $147,000 × 130%

= $191,100

Overhead Incurred = $106,300 + $8,000 + $18,000 + $15,000 + $8,200 + $39,000

= $194,500

Underapplied overhead = $194,500 - $191,100

= $3,400

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Answer:

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Explanation:

The solution is as evident in the attached Excel Sheet. In the excel sheet the formulas are used which are also given in the second sheet.

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8 0
3 years ago
What are the 4 steps to branding? How could we relate this to the scientific method?
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Answer:

•Define how you want to be perceived

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6 0
3 years ago
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither
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Answer:

neither

producer surplus

consumer surplus

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

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The second scenario is a producer surplus.

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6 0
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The blurring of lines between the state and a special interest group in which a close alliance develops is called
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Answer:

a. co-optation

Explanation:

Co-optation means the things could be taken out or are considered for the new or the different motive

Since the lines are burried and lies between the state and the special interest group in which the close alliance are created so this is we called as the co-optation

Therefore the same should be considered

3 0
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Suppose that the risk-free rates in the United States and in the United Kingdom are 4% and 6%, respectively. The spot exchange r
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Explanation:

In order to calculate the the futures price of the pound for a one-year contract be to prevent arbitrage opportunities we would have to make the following calculation:

futures price of the pound for a one-year contract=Spot rate*(1+United Kingdom risk free rate)/(1+United States risk free rate)

futures price of the pound for a one-year contract=$1.60/BP*(1+6%)/(1+4%)

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The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.

4 0
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