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    Assignment FOH

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    Quenn Naval
    Exercise 4 calculates the predetermined overhead rate and applied overhead for the Duro Company based on normal vs actual capacity. Exercise 5 provides estimates to calculate the predetermined overhead rate and applied overhead vs actual overhead for Speed Co. Exercise 6 similarly calculates the predetermined overhead rate and applied vs actual overhead for a company's power

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    Assignment FOH

    Uploaded by

    Quenn Naval
    64 views7 pages
    Exercise 4 calculates the predetermined overhead rate and applied overhead for the Duro Company based on normal vs actual capacity. Exercise 5 provides estimates to calculate the predetermined overhead rate and applied overhead vs actual overhead for Speed Co. Exercise 6 similarly calculates the predetermined overhead rate and applied vs actual overhead for a company's power

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    FOH COST ACCOUNTING

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    Exercise 4 calculates the predetermined overhead rate and applied overhead for the Duro Company based on normal vs actual capacity. Exercise 5 provides estimates to calculate the predetermined overhead rate and applied overhead vs actual overhead for Speed Co. Exercise 6 similarly calculates the predetermined overhead rate and applied vs actual overhead for a company's power

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    64 views7 pages

    Assignment FOH

    Uploaded by

    Quenn Naval
    Exercise 4 calculates the predetermined overhead rate and applied overhead for the Duro Company based on normal vs actual capacity. Exercise 5 provides estimates to calculate the predetermined overhead rate and applied overhead vs actual overhead for Speed Co. Exercise 6 similarly calculates the predetermined overhead rate and applied vs actual overhead for a company's power

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Assignment

    Exercise No.01
    On November 30, the work in process account of the Bee Dee Company showed:

    WORK IN PROCESS ACCOUNT

    Materials 20800
    Finish goods 45600
    Labour 20160
    Foh 15840

    Materials charged to the work still in process amounted $4560. Factory overhead is a
    fixed percentage of direct labour cost.

    Required: The individual amounts of factory overhead and direct labour


    cost charged to closing balance of work in process.
    Exercise No.02
    The Millan Company employes 150 people who work
    8 hours per day and 5 days a week. Normal capacity
    for the month is based on assumption that the
    equivalent of 47 weeks of work can be expected from
    an employee.
    Required:
    1. The number of direct labour hours to be
    used in setting up factory overhead rate
    based on normal capacity.
    2. The number of direct labour hours if
    management and workers agree to work for
    10 hours, 4 day a week.
    Exercise No.03
    The Carrcroft Company estimates its factory overhead for
    next period at $54,000. it is estimated that 36,000 units
    will be produced at a material cost of $45,000. production
    will require 24,000 direct labour hours at an estimated cost
    of $120,000. The machine will require about 1600 hours.
    Required:The predetermined factoryoverhead rate
    based:
    1. Material cost
    2. Units of production
    3. Machine Hours
    4. Direct Labour Cost
    5. Direct Labour Hours
    Exercise No.04
    Normal capacity of the Duro Company is set at
    90,000 hours. At this level of capacity the fixed
    overhead is $36,000 and variable overhead is
    $67,500. Actual results show 75,000 hours
    worked during the period.

    Required:
    1. Predetermined overhead rate based on
    normal capacity.
    2. The amount of factory overhead applied
    to production.
    Exercise No.05
    Speed Co. assembles and sells electric mixers. All parts purchasedand
    labour is paid on the basis of $32 per mixer assembled. The cost of parts
    per mixer totals $40. As the company
    handles only this one product, the unit cost basis for applying factory
    overhead is used. Estimated factory overhead for the coming period
    based on production of 30,000 mixer is as follows:
    Indirect materials $220,000 Indirect Labour $240,000
    Light and heat 30,000 Depreciation 25,000
    Miscellaneous 55,000
    During the period 29,000 mixers were assembled and actual factory
    overhead was $565,300.

    Required:
    1. Predetermine overhead rate.
    2. The amount of factory over head applied to production.
    3. The amount of over or under applied factory overhead.
    Exercise No.06
    Normal capacity of a Company ‘s power plant is
    estimated to be 4750,000 kilowatt hours per month. At
    this level of activity, fixed overhead is estimated to be
    $171,000 and variable overhead is $209,000. During
    November the power plant produced 5000,000 kilowatt
    hours and actual overhead for the month totaled
    $393,000.

    Required:
    1. Predetermined overhead rate based on normal
    capacity.
    2. The amount of factory overhead applied to production.
    3. Over or under applied factory overhead.

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