Question : 172.The predetermined overhead rate for Foster, Inc., based estimated direct : 1258491

172.The predetermined overhead rate for Foster, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were: 

Direct materials$240,000

Direct labor410,000

Indirect materials55,000

Indirect labor125,000

Sales commissions55,000

Factory depreciation170,000

Property taxes, factory15,000

Factory utilities35,000

Advertising62,500

Factory equipment rental110,000

(a) Calculate the predetermined overhead rate and calculate the overhead applied during the year. (b) Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.    

173.A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold. At year-end, the company’s Factory Overhead account has a credit balance of $9,000, which is not a material amount. What entry (if any) should the company make at year-end related to this overhead balance?    

174.Oddley Corp. uses a job order costing system. The following is selected information pertaining to costs applied to jobs during the year: 

Jobs still in process at the end of the year:

$167,000, which includes $65,000 direct labor costs.

Jobs finished and sold during the year:

$395,000, which includes $172,000 direct labor costs.

Jobs finished but unsold during the year:

$103,000, which includes $38,000 direct labor costs.

Oddley Corp.’s predetermined overhead rate is 60% of direct labor cost. At the end of the year, the company’s records show that $189,000 of factory overhead has been incurred. (a) Determine the amount of overapplied or underapplied overhead. (b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.  175.Taylor Corp. uses a job order costing system and worked only on Job 101 during the current period. Job 101 was sold for $460,000. The following information pertains to costs incurred for Job 101. 

Direct Materials$90,000

Indirect Materials$30,000

Direct Labor$130,000

Indirect Labor$75,000

Depreciation of Machinery$10,000

Factory Supplies$8,000

Overhead Application Rate90% of direct labor

Determine the amount of gross profit earned on Job 101.  176.At the end of June, the job cost sheets for Kennedy Manufacturing show the following total costs accumulated on three custom jobs. 

Job 203Job 204Job 205

Direct materials$32,000$47,000$43,000

Direct labor18,00022,00025,000

Overhead26,10031,90036,250

Job 203 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $6,000; and overhead $8,700. Jobs 204 and 205 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 203 and 204 are finished in June, and Job 205 will be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions assuming the company’s predetermined overhead rate did not change. a. What is the cost of the raw materials requisitioned in June for each of the three jobs? b. How much direct labor cost is incurred during June for each of the three jobs? c. What predetermined overhead rate is used during June? d. How much total cost is transferred to finished goods during June?