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The Thomlin Company forecasts that total overhead for the current year will be $11,571,000 with 171,000 total machine hours. Year to date, the actual overhead is $7,770,000 and the actual machine hours are 87,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

The Thomlin Company forecasts that total overhead for the current year will be $11,571,000 with 171,000 total machine hours. Year to date, the actual overhead is $7,770,000 and the actual machine hours are 87,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...
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The Thomlin Company forecasts that total overhead for the current year will be $11,571,000 with 171,000 total machine hours. Year to date, the actual overhead is $7,770,000 and the actual machine hours are 87,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Painting Dept. Finishing Dept. Totals Overhead Oa. $125.59 per unit Ob. $21.27 per unit Oc. $148.89 per unit Od. $85.33 per unit $231,800 76,800 $308,600 Direct Labor Hours (dlh) Product A 15 dlh 2 10,900 dlh 6,300 17,200 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is B 17 dlh 7 dlh 18 25 dlh
Transcribed Image Text:Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Painting Dept. Finishing Dept. Totals Overhead Oa. $125.59 per unit Ob. $21.27 per unit Oc. $148.89 per unit Od. $85.33 per unit $231,800 76,800 $308,600 Direct Labor Hours (dlh) Product A 15 dlh 2 10,900 dlh 6,300 17,200 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is B 17 dlh 7 dlh 18 25 dlh
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