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  • Water Wonders, Inc., Ocean Adventures Makers of Custom-Made Jet Skis, The

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    laale dijaan
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    This document provides information about overhead rates and costs for three jobs - 401, 402, and 403. It shows the estimated and actual fixed and variable overhead costs. It also calculates the applied overhead for each job using a predetermined overhead rate of $7.50 per direct labor hour. The applied overhead of $285,000 is less than the actual overhead of $325,000, resulting in under-applied overhead of $40,000.

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    Water Wonders, Inc., Ocean Adventures makers of custom-made Jet Skis, the

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    This document provides information about overhead rates and costs for three jobs - 401, 402, and 403. It shows the estimated and actual fixed and variable overhead costs. It also calculates the applied overhead for each job using a predetermined overhead rate of $7.50 per direct labor hour. The applied overhead of $285,000 is less than the actual overhead of $325,000, resulting in under-applied overhead of $40,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    77 views3 pages

    Water Wonders, Inc., Ocean Adventures Makers of Custom-Made Jet Skis, The

    Uploaded by

    laale dijaan
    This document provides information about overhead rates and costs for three jobs - 401, 402, and 403. It shows the estimated and actual fixed and variable overhead costs. It also calculates the applied overhead for each job using a predetermined overhead rate of $7.50 per direct labor hour. The applied overhead of $285,000 is less than the actual overhead of $325,000, resulting in under-applied overhead of $40,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    DLH 40000 Hours

    Estimated variable FOH 100000


    Estimated Fixed FOH 200000
    Total estimated Factory OH 300000
    Estimated variable FOH 2.50
    Estimated Fixed FOH 5.00
    Predetermined overhead rate per DLH 7.50

    Job dm dl dlh
    401 Apr-01 100000 120000 12000
    402 Apr-12 200000 250000 18000
    403 Apr-15 80000 75000 8000
    380000 445000 38000

    Actual foh expenses 325000


    Markup 25%
    Ques 1
    Job 401 Job 402
    Direct Materials 100000 200000
    Direct Labor 120000 250000
    Applied Factory Overhead 90000 135000
    Total cost 310000 585000

    Working
    Direct Labor Hours
    Estimated variable FOH 100000 40000
    Estimated Fixed FOH 200000 40000
    Predetermined overhead rate per DLH

    Per Hour Overhead rate Direct Labor Hours


    Job 401 7.50 12000
    Job 402 7.50 18000
    Job 403 7.50 8000
    Total
    Ques 2 No. Accounts Debit Credit
    Job 403
    80000 a Finished Goods 895000
    75000 Works in process 895000
    60000 310000+585000
    215000
    b Accounts receivable 387500
    Sales 387500
    Per Hour Overhead rate 310000*(1+0.25)
    2.50
    5.00 Cost of goods sold 310000
    7.50 Finished goods 310000

    Applied Factory overhead Ques 3 Analysis


    90000 Actual Factory overhead 325000
    135000 Applied Factory overhead 285000
    60000 Under applied overhead 40000
    285000

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