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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

Distinguishing between job order costing and process costing

Would the following companies most likely use job order costing or process costing?

b. A manufacturer of specialtywakeboards

Root Trailersโ€™ job cost records yielded the following information:

Use the dates in the table to identify the status of each job. Compute the following

balances for Root:

c. Cost of Goods Sold for July

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

g. Completed production on jobs with costs of $40,000

Young Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. At the beginning of 2018, the company expected to incur the following:

Manufacturing overhead costs

\(840,000

Direct labor cost

1,480,000

Machine hours

70,000 hours

At the end of 2018, the company had actually incurred:

Direct labor cost

\)1,230,000

Depreciation on manufacturing plant and equipment

620,000

Property taxes on plant

35,500

Sales salaries

26,000

Delivery driverโ€™s wages

22,500

Plant janitorโ€™s wages

17,000

Machine hours

60,000 hours

Requirements

4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease Cost of Goods Sold?

Question: Record the following journal entries for Smith Company:

6. Purchased raw materials on account, \(10,000.

7. Used \)6,000 in direct materials and \(500 in indirect materials in production.

8. Incurred \)8,000 in labor costs, of which 80% was direct labor.

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