Purchase Solution

Rodriquez Company Manufacturing overhead rates, under and over applied

Not what you're looking for?

Ask Custom Question

Rodriquez Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours.

For the year, $322,000 of overhead costs are incurred and 130,000 hours are used.

Instructions:
(a) Compute the manufacturing overhead rate for the year.
(b) What is the amount of under- or overapplied overhead at December 31?
(c) Assuming the under- or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold.

Attachments
Purchase this Solution
Solution Summary

The solution shows the calculations with explanations to arrive at the answers.

Solution Preview

(a) Compute the manufacturing overhead rate for the year.
=Overhead cost / machine usage = 300,000/125,000= $2.40 per machine hour

(b) What is the amount of under- or overapplied ...

Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Predetermined overhead rates

    Team P2-4A Compute predetermined overhead rates, apply overhead, and calculate under- or over applied overhead. Acquatic Manufacturing uses a job order cost system in each of its three manufacturing departments.

  • Overhead calculations

    Over or under applied overhead is the difference between acutal overhead and the applied overhead.

  • Calculate the Firm's Predetermined and Actual Overhead Rates

    Under or over-absorption of overheads may be treated in one or more of the following ways or methods: (a) Use of supplementary rates: Supplementary rate is calculated for full absorption of under or over applied overhead.

  • Job Costing, Cost Estimation, Estimating Overhead Rates

    What was the over-applied or under-applied overhead for year 3? d. O'Leary prorates any over-applied or under-applied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-In-Process Inventory.

  • Cost accounting

    The difference between the overhead applied and the overhead incurred is the under or over applied overhead Department A Overhead incurred 76,000 Overhead applied 74,400 Overhead is 1,600 under applied Department B Overhead incurred 74,000

  • Aquatic Manufacturing Department

    Dear student, answer Aquatic manufacturing departments are examined. The expert computes predetermined overhead rates, applies overhead and calculates the under- or over-applied overhead.

  • Mitsu Corporation Activity Based Accounting

    We didn't have rates based on estimated overhead and then applied based on actual activity so there was no over or under applied overhead.

  • Under-applied or Over-applied Manufacturing Overhead

    516676 Under-applied or Over-applied Manufacturing Overhead Smith Jones Company uses a predetermined overhead rate of 75% of direct labor cost.

  • Plantwide versus Department Overhead Rates

    Explain the difference between the manufacturing overhead that would have been applied ot the Hastings job using the plantwide rate in question 1(b) and using the department rates in question 2(b). 4.

View More Related Solutions