Compute The Predetermined Overhead Rate. Then enter the amounts to compute the allocation rate for each department. Predetermined overhead rate = estimated manufacturing overhead cost / estimated units of the allocation base for the period
Predetermined oh estimated overhead costs / estimated qty of the allocation base = allocation rate Applying the costs to manufacturing overhead And factory equipment depreciation, $52,000.
Raw Materials Purchases In April Are $530,000, And Factory Payroll Cost In April Is $380,000.
Using the predetermined overhead rate calculation, the overhead rate is $2.50 per direct labor dollar: Computing the predetermined overhead rate: Prepare the journal entry to record overhead applied for june.
Predetermined Oh Estimated Overhead Costs / Estimated Qty Of The Allocation Base = Allocation Rate
Calculation of the predetermined overhead rate can be done as follows: Harris fabrics computes its predetermined overhead rate annually onthe basis of direct labor hours. During the year, job 400 was started and completed.
The Sales Price Of Theorder Was $147,000.
Compute the total manufacturing cost assigned to job 400. These activities and the amount of overhead cost attributable to each for the current year are given below: Compute the predetermined overhead rate for each department.
Compute The Predetermined Overhead Rate For Each Department.
(d.) compute the cost of goods sold for the past year. Manufacturing overhead cost of $360,000 and direct labor hours of 900. Direct labor (975 hours) 230,000
This Activity Base Is Often Direct Labor Hours, Direct Labor Costs, Or.
Predetermined overhead rate is used to apply manufacturing overhead to products or job orders and is usually computed at the beginning of each period by dividing the estimated manufacturing overhead cost by an allocation base (also known as activity base or. Determine how much overhead should be applied to job 1 and to job 2 for june. At the beginning of the year itestimated that its totalmanufacturing overhead would be $134,000and thetotal direct labor would be 20,000 hours.
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