Classic Woods manufactures jewelry boxes. The primary materials (wood, brass, an
ID: 2437471 • Letter: C
Question
Classic Woods manufactures jewelry boxes. The primary materials (wood, brass, and glass) and direct labor are assigned direcitly to the products Manufacturing overhead costs are allocated based on machine hours. Data for 2016 follow EE Click the icon to view Requirements 1. Compute the predeterm 2. Post actual and allocate 3. Prepare the journal ent 4. The predetermined ove Data Table Estimated Actual hufacturing overhead rate? Machine hours Maintenance labor (repairs to equipment Plant supervisor's salary Screws, nalls, and glue Plant utilities Freight out Depreciation on plant and equipment Advertising expense 25,000 hours 32,700 hours $ 16,000 s 28,500 Requirement 1. Compute 47,000 27,000 45,000 39,000 89,000 40,000 48,000 44,000 92,850 48,500 88,000 56,000 Estimated overhea 293350 achine hour able cell to post each Requirement 2. Post actu amount. Enter amounts in Manufacturing Ov Print Done Choose from any list orExplanation / Answer
a)Predetermined manufacturing overhead rate =Total Estimated Manufacturing Overhead Costs/Total Estimated Machine Hours Maintenance labor (repairs to equipment) $16,000.00 Plant supervisor’s salary $47,000.00 Screws, nails, and glue $57,000.00 Plant utilities $45,000.00 Depreciation on plant and equipment $89,000.00 Total Estimated Manufacturing Overhead Costs (a) $254,000.00 Total Estimated Machine Hours (b) 25000 Hours Predetermined manufacturing overhead rate = a/b = $254000/25000 $10.16 b) Manufacturing Overhead $28,500.00 $332,232.00 $48,000.00 $44,000.00 $92,850.00 $88,000.00 Bal. $30,882 * $332,232 = 32,700 hours x $10.16 c) Account Titles & Explanation Debit Credit Cost of Good sold $30,882.00 Manufacturing Overhead $30,882.00 d) The actual manufacturing overhead rate is not known until the end of the period. Managers need to make decisions throughout the period. Accountants use predetermined overhead rates to give managers product cost information when they need it—today.