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The manufacturing records for Sporty Kayaks at the end of the 2018 fiscal year show the following information about manufacturing overhead:

Overhead allocated to production

\(409,200

Actual manufacturing overhead cost

432,000

Predetermined overhead allocation rate

\)44 per machine hours

Requirements

1. How many machine hours did Sporty Kayaks use in 2018?

Short Answer

Expert verified

The machine hours used by sporty kayaks in 2018 is 9,300 hours

Step by step solution

01

Manufacturing overhead

The manufacturing overhead is defined as the aggregate of all the indirect cost incurred by the company on the production of the goods during the year.

02

The machine hours used by Sporty Kayaks in 2018 

machinehoursusedin2018=overheadallocatedtoproductionpredeterminedoverheadallocationrate=$409,200$44=9,300hours

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Most popular questions from this chapter

Give the journal entry for direct and indirect labor costs incurred. Explain how this transaction affects the accounting equation.

Question: Match the following terms to their definitions.

a. A record used to assign direct labor cost to specific jobs. 1. Job

b. A document that requests the transfer of materials to 2. Job cost order

the production floor.

c. A document that shows the direct materials, direct labor, 3. Job order costing

and manufacturing overhead costs for an individual job.

d. An accounting system that accumulates costs by process. 4. Labor time record

e. The production of a unique product or specialized service 5. Material requisition

f. Used by companies that manufacture unique products or 6. Process costing system

provide specialized services

Oak Outdoor Furniture manufactures wood patio furniture. If the company reportsthe following costs for June 2018, what is the balance in the Manufacturing Overheadaccount before overhead is allocated to jobs? Assume that the labor has been incurred,but not yet paid. Prepare journal entries for overhead costs incurred in June.

Wood

$270,000

Nails, glue, stain

18,000

Depreciation on saws

5,300

Indirect manufacturing labor

45,000

Depreciation on delivery truck

1,700

Assembly-line workerโ€™s wages

51,000

Goldenrod Company makes artificial flowers and reports the following data for the month:

Purchases of materials, on account

$51,000

Materials requisition:

Direct material

42,300

Indirect materials

500

Labor incurred (not yet paid):

Direct labor

20,300

Indirect labor

1,340

Journalize the entries relating to materials and labor.

Question: Journalize the following transactions for Margeโ€™s Sofas. Explanations are not required.

f. Allocated manufacturing overhead to jobs, 200% of direct labor costs.

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