The following information was reported by Bard Company relating to its first year of operations....
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Accounting
The following information was reported by Bard Company relating to its first year of operations. Note that Bard has only identified direct labor and direct materials as direct costs.
Item Expected Cost Actual Cost Advertising Expenditures $156,400 $154,500 Depreciation on Factory Equipment $544,100 $526,600 Direct Labor $846,000 $993,000 Direct Materials $1,213,000 $1,259,000 Factory Supplies $97,400 $108,600 Head Office General Expenditures $356,400 $392,100 Head Office Salaries $326,500 $345,600 Heating in Factory $120,800 $117,900 Income Taxes $2,135,000 $2,799,000 Machine Repair and Maintenance $109,200 $102,200 Production Supervisor Wages $115,300 $127,300 Rent for Factory $991,700 $919,300 Office Supplies $111,000 $119,900 Sales Expenditures $463,800 $488,500 Total $7,586,600 $8,453,500
Bard Company allocates manufacturing overhead using a predetermined overhead rate. Bard uses direct labor hours as an allocation base and expects to incur 38,900 direct labor hours.
a) What is the total estimated manufacturing overhead cost?
Do not enter dollar signs or commas in the input boxes.
Item Overhead Cost? Advertising Expenditures AnswerNoYes Depreciation on Factory Equipment AnswerNoYes Direct Labor AnswerNoYes Direct Materials AnswerNoYes Factory Supplies AnswerNoYes Head Office General Expenditures AnswerNoYes Head Office Salaries AnswerNoYes Heating in Factory AnswerNoYes Income Taxes AnswerNoYes Machine Repair and Maintenance AnswerNoYes Production Supervisor Wages AnswerNoYes Rent for Factory AnswerNoYes Office Supplies AnswerNoYes Sales Expenditures AnswerNoYes
Estimated Manufacturing Overhead Costs: Answer
b) What is the predetermined overhead rate?
Round your answer to 2 decimal places.
Predetermined overhead rate: Answer
c) If the hourly rate for direct labor is $25, what is the manufacturing overhead applied to production?
Round your answer to the nearest whole number.
Applied Overhead: Answer
d) What is the over or under-allocated manufacturing overhead for this year? Assume the wage rate is still $25/hr.
AnswerOver-allocatedUnder-allocated: Answer
The following information was reported by Bard Company relating to its first year of operations. Note that Bard has only identified direct labor and direct materials as direct costs.
| Item | Expected Cost | Actual Cost |
| Advertising Expenditures | $156,400 | $154,500 |
| Depreciation on Factory Equipment | $544,100 | $526,600 |
| Direct Labor | $846,000 | $993,000 |
| Direct Materials | $1,213,000 | $1,259,000 |
| Factory Supplies | $97,400 | $108,600 |
| Head Office General Expenditures | $356,400 | $392,100 |
| Head Office Salaries | $326,500 | $345,600 |
| Heating in Factory | $120,800 | $117,900 |
| Income Taxes | $2,135,000 | $2,799,000 |
| Machine Repair and Maintenance | $109,200 | $102,200 |
| Production Supervisor Wages | $115,300 | $127,300 |
| Rent for Factory | $991,700 | $919,300 |
| Office Supplies | $111,000 | $119,900 |
| Sales Expenditures | $463,800 | $488,500 |
| Total | $7,586,600 | $8,453,500 |
a) What is the total estimated manufacturing overhead cost?
Do not enter dollar signs or commas in the input boxes.
| Item | Overhead Cost? |
| Advertising Expenditures | AnswerNoYes |
| Depreciation on Factory Equipment | AnswerNoYes |
| Direct Labor | AnswerNoYes |
| Direct Materials | AnswerNoYes |
| Factory Supplies | AnswerNoYes |
| Head Office General Expenditures | AnswerNoYes |
| Head Office Salaries | AnswerNoYes |
| Heating in Factory | AnswerNoYes |
| Income Taxes | AnswerNoYes |
| Machine Repair and Maintenance | AnswerNoYes |
| Production Supervisor Wages | AnswerNoYes |
| Rent for Factory | AnswerNoYes |
| Office Supplies | AnswerNoYes |
| Sales Expenditures | AnswerNoYes |
b) What is the predetermined overhead rate?
Round your answer to 2 decimal places.
Predetermined overhead rate: Answer
c) If the hourly rate for direct labor is $25, what is the manufacturing overhead applied to production?
Round your answer to the nearest whole number.
Applied Overhead: Answer
d) What is the over or under-allocated manufacturing overhead for this year? Assume the wage rate is still $25/hr.
AnswerOver-allocatedUnder-allocated: Answer
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