1. Jones Inc. computes its predetermined overhead rate annually on the basis of machine hours. At the beginning of the year it estimated that its total manufacturing overhead would be $900000 and the total machine hours (mh) would be 45000. Its actual total manufacturing overhead for the year was $995000 and its actual machine hours were 50000.What is the predetermined overhead rate for the year? Show Computations. 2. Snapper Corp. computes its predetermined overhead rate annually on the basis of direct-labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $240000 and the total direct labor hours (dlh) would be 6000. Its actual total manufacturing overhead for the year was $210000 and its actual direct labor hours were 5400.How much would be applied to the jobs for the year? Show Computations.3. Smith Jones Company uses a predetermined overhead rate of 75% of direct labor cost. This predetermined rate was based on $60000 estimated direct labor cost and $45000 of estimated total manufacturing overhead. The company incurred actual total manufacturing costs of $52000 and $71000 of direct labor cost during the period.What is the amount of overapplied or underapplied manufacturing overhead? Show Computations.4. Tanner Bay Inc. has two departments Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Assembly Department bases its rate on machine hours and the Packaging Department bases its rate on direct labor hours. At the beginning of the year the company made the following estimates:Assembly PackagingDirect Labor-hours 3000 4000Machine-hours 8500 9900Manufacturing Overhead $144500 $172000Direct labor cost $89200 $101000Assume also the following actual data on Job #503 which was started and completed during the year:Assembly PackagingDirect Labor-hours 23 37Machine-hours 109 142Manufacturing Overhead $8787 $6566Direct labor cost $2100 $1990What is the predetermined overhead rate to be used in each department? Show computations.5. XYZ Corporation has two departments Machining and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Machining Department bases its rate on machine hours and the Assembly Department bases its rate on direct labor cost. At the beginning of the year the company made the following estimates;Machining AssemblyDirect Labor-hours 11000 9000Machine-hours 23000 14000Manufacturing Overhead $368000 $312000Direct labor cost $102100 $78000Assume also the following actual data on Job #219 which was started and completed during the year:Machining AssemblyDirect Labor-hours 104 98Machine-hours 189 290Materials requisitioned $33400 $44200Direct labor cost $4200 $9600 a. What is the total cost assigned to Job #219? Show Computation.b. What is the predetermined overhead rate to be used in each department? Show computations
