Dallman Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on 70,000 machine-hours, total fixed manufacturing overhead cost of $287,000, and a variable manufacturing overhead rate of $3.50 per machine-hour.Required:a. Calculate the estimated total manufacturing overhead for the year.b. Calculate the predetermined overhead rate for the year.
What will be an ideal response?
a. Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $287,000 + ($3.50 per machine-hour × 70,000 machine-hours) = $287,000 + $245,000 = $532,000
b. Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $532,000 ÷ 70,000 machine-hours = $7.60 per machine-hour
You might also like to view...
Under the indirect method, if a current liability account increases from the beginning of the year to the end of the year, what is the impact of the change on the statement of cash flows?
a. Cash inflow from financing activities is increased; b. Cash inflow from financing activities is decreased; c. Cash inflow from operating activities is increased; d. Cash inflow from operating activities is decreased; e. none of these.
Operations splitting sends pieces to the next operation before the entire lot is completed on the previous operation
Indicate whether the statement is true or false
Unlike traditional human resource information systems (HRIS), cloud-based software-as-a-service (SAAS) systems have multiple systems of record for HR data.
Answer the following statement true (T) or false (F)
One important consideration is that data are made available in different forms so that users with different ________ abilities can make sense of them
A) technological B) behavioral C) psychological D) cognitive