“Bangor Company manufactures two products, Velveeto and Fondant. Bangor has estimated overhead costs as follows: setting up machines ($160,000), machining ($300,000) and inspecting ($100,000). Information on the two products follows: Velveeto Fondant Direct labor hours 60,000 100,000 Machine setups 2,400 1,600 Machine hours 96,000 104,000 Inspections 3,200 2,800 Overhead is applied to Fondant using direct labor hours. What is the total amount of overhead charged to this product line using traditional costing?”,”$350,000Correct! The overhead rate is calculated by dividing estimated overhead divided by estimated direct labor hours. Then, the rate is multiplied by the actual activity. Rate = [($160,000 + $300,000 + $100,000) / 160,000 hours] = $3.50 per direct labor hourApplied = $3.50 × 100,000 = $350

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Bangor Company manufactures two products,[…]

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“For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead incurred was $115,000.”,”Compute the amount of manufacturing overhead applied during the month.110

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“Norman Company manufactures customized desks. The following pertains to Job No. 953:Direct materials used $22,800 Direct labor hours worked 600 Direct labor rate per hour $16.00 Machine hours used 400 Applied factory overhead rate per machine hour $30.00 What is the total manufacturing cost for Job No. 953?”,”$44

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Norman Company manufactures customized desks.[…]

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“Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2,100,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?”,”$102

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Vektek, Inc. thinks machine hours[…]

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