Business, 02.01.2020 23:31 ladybugys

Mango company applies overhead based on direct labor costs. for the current year, mango company estimated total overhead costs to be $480,000, and direct labor costs to be $240,000. actual overhead costs for the year totaled $501,000, and actual direct labor costs totaled $269,000. at year-end, factory overhead account is: a. overapplied by $10, 000 b. overapplied by $170, 000. c. underapplied by $10, 000.

Answers: 3

Show answers

Answers

Answer from: byjennjenn

The correct answer is $37,000 overapplied

Explanation:

Giving the following information:

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $480,000, and direct labor costs to be $240,000. Actual overhead costs for the year totaled $501,000, and actual direct labor costs totaled $269,000.

First, we need to calculate the allocated overhead for the period. To allocate we need to determine the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 480,000/240,000= $2 per direct labor dollar

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2*269,00= $538,000

Over/under allocation= real MOH - allocated MOH

Over/under allocation= 501,000 - 538,000= $37,000 overallocated

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

Another question on Business

Business, 21.06.2019 14:50

The maximum amount of money that a consumer can charge on a credit card is called the

Answers: 2

Answer

Business, 22.06.2019 13:00

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators

Answers: 1

Answer

Business, 22.06.2019 14:40

Increases in output and increases in the inflation rate have been linked to

Answers: 2

Answer

Business, 22.06.2019 16:00

If the family’s net monthly income is 7,800 what percent of the income is spent on food clothing and housing?

Answers: 3

Answer

You know the right answer?

Mango company applies overhead based on direct labor costs. for the current year, mango company esti...