Home / Questions / The following data is available for Sykes Company, a small manufacturing firm, for the mon
The following data is available for Sykes Company, a small manufacturing firm, for the month of
October:
Actual manufacturing overhead costs incurred $58,000
Manufacturing overhead Allocated to jobs56,000
Under allocated manufacturing overhead$2,000
Assume that the amount of under allocated manufacturing overhead is not material.
Sykes Company will dispose of the under allocation by:
A) Increasing cost of goods sold by $2,000
B) Decreasing cost of goods sold by $2,000
C) Reducing cost of goods manufactured by $2,000
D) Decreasing cost of goods manufactured by $2,000
47) The following data is available for Sykes Company, a small manufacturing firm, for the month of
October:
Manufacturing overhead Allocated to jobs$56,000
Actual manufacturing overhead costs incurred58,000
Over allocated manufacturing overhead$2,000
Assume that the amount of under allocated manufacturing overhead is not material.
Sykes Company will dispose of the under allocation by:
A) Increasing cost of goods sold by $2,000
B) Decreasing cost of goods sold by $2,000
C) Reducing cost of goods manufactured by $2,000
D) Decreasing cost of goods manufactured by $2,000
48) The following data is available for Sykes Company, a small manufacturing firm, for the month of
October:
Actual manufacturing overhead costs incurred$158,000
Manufacturing overhead Allocated to jobs108,000
Under allocated manufacturing overhead$50,000
At the end of the month the accounting records indicate:
Jobs still in Work in Process 30%
Jobs still in Ending Inventory20%
Jobs completed and sold50%
Assume that the amount of under allocated manufacturing overhead is considered material.
Indicate the direction (increase/decrease) and amount of the adjustment Sykes Company will make, to dispose of the under allocation, to each of the following inventory accounts:
Work in Process: __________________________________________________
Ending Inventory: _________________________________________________
Cost of Goods Sold: ________________________________________________
49) The following data is available for Sykes Company, a small manufacturing firm, for the month of
October:
Manufacturing overhead Allocated to jobs $108,000
Actual manufacturing overhead costs incurred 158,000
Over allocated manufacturing overhead$50,000
At the end of the month the accounting records indicate:
Jobs still in Work in Process 30%
Jobs still in Ending Inventory20%
Jobs completed and sold.50%
Assume that the amount of under allocated manufacturing overhead is considered material.
Indicate the direction (increase/decrease) and amount of the adjustment Sykes Company will make, to dispose of the under allocation, to each of the following inventory accounts:
Work in Process: __________________________________________________
Ending Inventory: _________________________________________________
Cost of Goods Sold: ________________________________________________
50) FreeBake produces pie crusts and tart shells. The company allocates manufacturing overhead based on the machine hours each job uses. FreeBake reports the following cost data for the past year.
|
|
BUDGET |
ACTUAL |
|
Direct labour hours |
14,000 hours |
12,800 hours |
|
Machine hours |
13,500 hours |
12,600 hours |
|
Depreciation on salespeople's autos |
$26,000 |
$26,000 |
|
Indirect materials |
98,000 |
104,000 |
|
Depreciation on delivery trucks |
26,000 |
28,000 |
|
Depreciation on plant and equipment |
127,000 |
134,000 |
|
Indirect manufacturing labour |
80,000 |
86,000 |
|
Customer service hotline |
38,000 |
42,000 |
|
Plant utilities |
36,000 |
40,000 |
|
Direct labour cost |
140,000 |
170,000 |
Required:
1. Compute the predetermined overhead rate.
2. Calculate the allocated Manufacturing Overhead for the past year.
3. Compute the under allocated or over allocated Manufacturing Overhead.
4. How will this under allocated or over allocated Manufacturing Overhead be disposed of?
Dec 07 2019 View more View Less
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