B) due to the fact that ERP systems track costs more efficiently, the benefit from the expense information outweighs thecost the obtaining the information.


You are watching: The predetermined overhead rate is used to allocate overhead cost to jobs.

4 i beg your pardon of the following is a reason why a job order costing mechanism is suitable for a tradition furnituremanufacturer?
Which the the adhering to accounts would be debited in the newspaper entry to record the issuance the directmaterials?
Aaron, Inc. Estimates direct labor costs and manufacturing overhead expenses for the coming year come be$750,000 and also $550,000, respectively. Aaron allocates overhead costs based on machine hours. Theestimated full labor hours and device hours because that the coming year space 18,000 hours and also 7,000 hours,respectively. What is the predetermined overhead assignment rate? (Round your answer come the nearestcent.)
D) $78.57 per maker hourExplanation: D) Predetermined overhead allocation price = complete estimated overhead costs / Totalestimated amount of the overhead allocation basePredetermined overhead allocation price = $550,000 / 7,000 an equipment hours = $78.57 per machine hour
Sybil, Inc. Uses a predetermined overhead allocation price to allocate manufacturing overhead expenses tojobs. The firm recently completed project 300X. This job offered 11 machine hours and also 5 straight labor hours.The predetermined overhead allocation rate is calculation to be $43 per an equipment hour. What is the amountof production overhead allocated to project 300X using device hours together the assignment base?
A) $473Explanation: A) Allocated production overhead price = Predetermined overhead allocation rate ×Actual quantity of the allocation base provided by each jobAllocated production overhead cost = $43 × 11 machine hours = $473
The newspaper entry to record allocation of production overhead come a specific job consists of a________.
D) debit to the Work-in-Process list account and also credit to the production Overhead accountAnswer: D
The records at Smith and also Jones, Inc. Show that task 110 is charged v $10,000 of direct materials and$13,000 of direct labor. Smith and also Jones, Inc. Allocate manufacturing overhead at 80% of direct labor cost.What is the full cost of job No. 110?
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