Description of this paper

Loading

Calculating the Predetermined Overhead Rate, Applying Overhead to-(Answered)

Description

Instant Solution ? Click "Buy button" to Download the solution File


Question

Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead

At the beginning of the year, Horvath Company estimated the following:

Overhead $360,000
Direct labor hours 90,000

Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 8,550. By the end of the year, Horvath showed the following actual amounts:

Overhead $366,000
Direct labor hours 89,600

Assume that unadjusted Cost of Goods Sold for Horvath was $576,000.

Required:

1. ?Calculate the predetermined overhead rate for Horvath. Round your answers to the nearest cent, if rounding is required.?
$?per direct labor hour

2. ?Calculate the overhead applied to production in January. (Note: Round to the nearest dollar, if rounding is required.)
$

3. ?Calculate the total applied overhead for the year.
$

Was overhead over- or underapplied? By how much?
SelectUnderappliedOverappliedItem 4?overhead $

4. ?Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.
$

 

Paper#9209076 | Written in 27-Jul-2016

Price : $19
SiteLock