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What is the predetermined manufacturing overhead rate with given info Table Top 1700 Table Leg 500 Drawer 370 Assume a 35 per hour wage rate to the assembly employees The company uses a job order cost?
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Is depreciation manufacturing labor?
Depreciation is not a manufacturing labor rather it is manufacturing overhead as machines used in manufacturing is not part of labor rather it is part of overhead.
What is Applied manufacturing overhead?
what is factory overhead applied?
What is One potential cause of Total Manufacturing Overhead Variance?
If the estimated materials, labor or overhead costs allocated for a manufacturing order is different from the actual cost of the MO then the potential result is a Manufacturing Overhead Variance.
What is manufacturing supplies inventory?
manufacturing supplies is equal to factory overhead
When manufacturing overhead is applied to production is added to?
the Work in Process account
What is the predetermined manufacturing overhead rate?
The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis. Table Top $ 1,700.00 Table Leg $ 500.00 Drawer $ 370.00 Assume a $35 per hour wage rate to the assembly employees. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 12 direct labor hours worked during the month. The estimated manufacturing overhead cost for the month is: a. Factory supervisor salary per month $ 3,500.00 b. Rent for the factory per month $ 1,300.00 c. Depreciation of factory equipment per month $ 600.00 Total Estimated manufacturing overhead $ 5,400.00
When is the Predetermined overhead rate usually calculated?
The predetermined overhead rate used to apply overhead to finished jobs is determined before the period begins.
Applied overhead vs actual overhead?
APPLIED Overhead is computed using the predetermined overhead rate and is the amount of costs applied (or estimated) to be allocated (needed) for specific jobs. ACTUAL Overhead is found after the manufacturing process is complete which gives the actual amount of used/consumed resources (or total costs) that it needed to complete the job. The two amounts can then be compared afterward which is known as Under- or Overapplied Manufacturing Overhead. When Manufacturing Overhead has a DEBIT balance, overhead is said to be UNDERAPPLIED, meaning that the overhead applied to work in process or to the certain job is LESS than the overhead incurred. On the contrary, when manufacturing overhead has a CREDIT balance, overhead is OVERAPPLIED, meaning that the overhead assigned to work in process or to the certain job is GREATER than the overhead incurred.
How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?
Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.
What if budgeted manufacturing overhead is not equal to applied manufacturing overhead?
There is a variance.
What would a plantwide manufacturing overhead rate be assigned to?
what is plantwide manufacturing overhead
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
How do you calculate total manufacturing cost?
Weaver Company's predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour.
What is the advantage of using a predetermined overhead application rate?
RUNOVER
How do you calculate predetermined overhead?
You take estimated overhead divided by the estimated level of production activity. It is used to assign overhead to production.
Is depreciation manufacturing labor?
Depreciation is not a manufacturing labor rather it is manufacturing overhead as machines used in manufacturing is not part of labor rather it is part of overhead.
Manufacturing overhead - fixed or variable cost?
Compute the actual and budgeted manufacturing overhead rate
