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PLEASE HELP ME GUYS I NEED TO ANSWER ALL QUESTIONS I APPRECIATED THE HELP REALLY

ID: 2452599 • Letter: P

Question

PLEASE HELP ME GUYS I NEED TO ANSWER ALL QUESTIONS I APPRECIATED THE HELP REALLY LOVE U GUYS STRUGGLING LOT

2.

Haldane Company estimates that its overhead costs for 2014 will be $200,220 and output in units of product will be 282,000 units.

   

Calculate Haldane’s predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.)

predetermined overhead rate per unit.

If 25,000 units of product were made in March 2014, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

allocated overhead cost

3.

Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.

   


Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.)

                                per direct labour hour

                                       Mason company                         rodd company

predetermined overhead rate

b.

Using T-accounts, record applied and actual overhead and the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.

Adjusting Entry for Mason Company:

manufacturing overhead table                                                    cost of good sold table

Adjusting Entry for Rodd Company:

manufacturing overhead table                                                       cost of good sold table  

4. Paton Company incurred manufacturing overhead cost for the year as follows.


The company produced 1,000 units and sold 500 of them at $181.40 per unit. Assume that the production manager is paid a 2 percent bonus based on the company’s net income.

Required:

Prepare an income statement using absorption costing. (Round your answers to the nearest dollar amount.)

b.

Prepare an income statement using variable costing. (Round your answers to the nearest dollar amount.)

c-1. Determine the manager’s bonus using each approach. (Round your intermediate calculations and final answers to the nearest dollar amount.)

absorption costing

variable costing

c-2. Which approach would you recommend for internal reporting.

variable costing

absorption costing

Required: a.

Calculate Haldane’s predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.)

predetermined overhead rate per unit.

If 25,000 units of product were made in March 2014, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

allocated overhead cost

3.

Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.

   

Mason Company Rodd Company   Actual manufacturing overhead $ 194,350 $ 218,900   Actual direct labor hours 27,000 22,000   Underapplied overhead 11,000   Overapplied overhead 23,000


Required: a.

Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.)

                                per direct labour hour

                                       Mason company                         rodd company

predetermined overhead rate

b.

Using T-accounts, record applied and actual overhead and the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.

Adjusting Entry for Mason Company:

manufacturing overhead table                                                    cost of good sold table

Adjusting Entry for Rodd Company:

manufacturing overhead table                                                       cost of good sold table  

4. Paton Company incurred manufacturing overhead cost for the year as follows.

  Direct materials $ 38.20 /unit   Direct labor $ 26.20 /unit   Manufacturing overhead      Variable $ 11.30 /unit      Fixed ($18.70/unit for 1,000 units) $ 18,700   Variable selling and admin. expenses $ 3,950   Fixed selling and admin. expenses $ 15,800


Explanation / Answer

Compute Haldane’s predetermined overhead rate based on expected production Expected production in units 282000 units Estimated overhead cost $                                   2,00,220.00 Predetermined over head rate per unit (200220/282000) $                                               0.71 If 25,000 units of product were made in March 2014 overhead cost would be allocated to the Work in Process Inventory account during the month = 25000* Predetermined overhead rate overhead cost would be allocated to the Work in Process Inventory account during the month = 25000*0.71 overhead cost would be allocated to the Work in Process Inventory account during the month = $                                      17,750.00 Therefore, allocated overhead rate is $                                               0.71 Therefore, allocated overhead cost to WIP $                                      17,750.00

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