Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ikerd company applies manufacturing overhead to jo

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs...

Free

70.2K

Verified Solution

Question

Accounting

Ikerd Company applies manufacturing overhead to jobs on thebasis of machine hours used. Overhead costs are estimated to total$283,725 for the year, and machine usage is estimated at 126,100hours.

For the year, $303,850 of overhead costs are incurred and 130,200hours are used.

Compute the manufacturing overhead rate for the year.(Round answer to 2 decimal places, e.g.1.25.)

Manufacturing overheadrate$per machine hour

What is the amount of under- or overapplied overhead at December31?

Manufacturing Overhead$

Overapplied/Underapplied

Prepare the adjusting entry to assign the under- or overappliedoverhead for the year to cost of goods sold. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Answer & Explanation Solved by verified expert
4.4 Ratings (1072 Votes)

Estimated manufacturing overhead cost $     283,725
Estimated machine hours         126,100
Manufacturing overhead cost per hour 283725/126100
Manufacturing overhead cost per hour $           2.25
Actual machine hours used         130,200
Overhead costs applied 130200*2.25
Overhead costs applied $     292,950
Actual overhead costs $     303,850
Overhead costs applied $    (292,950)
Underapplied overhead cost $       10,900
Cost of goods sold                  Dr $       10,900
      To Manufacturing overhead $ 10,900
(being underapplied overhead cost closed to COGS)

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

What is the Absorbance of a cell suspension? How does absorbance at 400 nm change with...

General Management
1.2K views

objectives Use strategies to locate, identify, and describe new ideas. Identify problems or issues that need a new...

Accounting
1.2K views

3. ADJUSTING ENTRIES-Chapter-3. USE THE FOLLOWING ACCOUNTS Supplies, Prepaid Insurance, Supplies...

Accounting
1.2K views

Let it Snow Manual Practice Set Part 4 (A) The adjusted trial balance for Let...

Accounting
1.2K views

Accounting systems generally produce information about numbers - certainly necessary for both decision-making and control....

Accounting
1.2K views

nequared nequared

Accounting
1.2K views

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one...

Accounting
1.2K views

Spartan Systems reported total sales of $440,000, at a price of $25 and per unit...

Accounting
1.2K views

reconciliation, tor 3123, but records it as S13. you would: increase the bank balance by...

Finance
1.2K views

9. Two friends saved for retirement over a 40-year period in two different ways. Zach...

Accounting
1.2K views

Q Show the effects of a decrease in current period productivity in the Keynesian model?...

Finance
1.2K views

Cloth plc is the parent of the enterprise and has a manufacturing subsidiary, Tweed Inc,...