Find predetermined overhead rate per direct labor hour


Problem 1: When job 711 was completed, direct materials totaled $4,000; direct labor, $4,600; and factory overhead, $2,400, respectively. Units produced totaled 1,000. Unit costs are _______.

  • $11,000
  • $1,100
  • $110
  • $11

Problem 2: Materials purchased on account during the month amounted to $195,000. Materials requisitioned and placed in production totaled $168,000. From the following, select the entry to record the transaction on the day the materials were bought.
       
Materials                168,000
Accounts Payable    168,000
   
Materials                195,000
Accounts Payable    195,000
       
Materials                195,000
Cash                      195,000
      
Accounts Payable    195,000
Materials                195,000

Problem 3: The following budget data are available for Newest Company:

Estimated direct labor hours                9,000
Estimated direct dollars                   $60,000
Estimated factory overhead costs    $154,000

If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is _____.

  • $2.57
  • $.39
  • $6.67
  • $17.11

Problem 4: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 46,000. What is the predetermined overhead rate per direct labor hour?

  • $8.00
  • $8.20
  • $8.38
  • $7.83

Problem 5: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 46,000. The entry to apply the factory overhead costs for the year would include a _______.

  • debit to factory overhead for $360,000
  • credit to factory overhead for $368,000
  • debit to factory overhead for $377,200
  • credit to factory overhead for $360,000

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Find predetermined overhead rate per direct labor hour
Reference No:- TGS01738296

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)