Canvas Student Module Quiz: Overhead Application Illustration

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What is the total overhead applied to a product that uses 6 machine hours in machining and has a direct-labor cost of $40 in assembly?

$64

If Enriquez used 70,000 machine hours in Machining, how much overhead was applied to Machining?

$280,000

If Enriquez had incurred $190,000 in direct labor cost, how much overhead was applied to Assembly?

$95,000

What are overhead rates used for?

To apply overhead based on actual events Signup and view all the answers

How is total overhead applied to a product calculated?

Budgeted overhead rates multiplied by actual machine hours or labor cost used Signup and view all the answers

In the Enriquez Machine Parts Company, what is selected as the cost allocation base for applying overhead in the machining department?

Machine hours Signup and view all the answers

What is the formula used to calculate total overhead applied to a product?

Actual machine hours or labor cost used multiplied by budgeted overhead rates Signup and view all the answers

If a product uses 5 machine hours and has a direct labor cost of $40, how much overhead would be applied according to the given illustration?

$44 Signup and view all the answers

If Enriquez had used 70,000 machine hours in machining, how much overhead was applied to machining?

Not provided Signup and view all the answers

What are budgeted overhead application rates based on?

Estimates Signup and view all the answers

What are budgeted overhead application rates?

Budgeted overhead application rates are estimates used to apply overhead based on actual events. Signup and view all the answers

How is total overhead applied to a product calculated?

Total overhead applied to a product equals budgeted overhead rates multiplied by actual machine hours or labor cost used by that product. Signup and view all the answers

In the Enriquez Machine Parts Company, what cost-allocation base is used in the machining department?

The cost-allocation base used in the machining department is machine hours. Signup and view all the answers

How much overhead would be applied to a product that uses 6 machine hours in machining and has direct-labor cost of $40 in assembly?

$44 of overhead would be applied to the product. Signup and view all the answers

If Enriquez had incurred $190,000 in direct labor cost at the end of the year, what does this represent?

This represents the total direct labor cost incurred by Enriquez in the year. Signup and view all the answers

If Enriquez had used 70,000 machine hours in the machining department, what does this indicate?

This indicates the total machine hours utilized by Enriquez in machining throughout the year. Signup and view all the answers

What are the two main cost-allocation bases used in the Enriquez Machine Parts Company?

The two main cost-allocation bases are machine hours in machining and direct-labor in assembly. Signup and view all the answers

What are budgeted overhead application rates used for?

To apply overhead based on actual events Signup and view all the answers

How is total overhead applied to a particular product calculated?

Budgeted overhead rates multiplied by actual machine hours or labor cost used by that product Signup and view all the answers

In Enriquez Machine Parts Company, what cost-allocation base is used for applying overhead in the machining department?

Machine hours Signup and view all the answers

What is the total overhead applied to a product that uses 5 machine hours in machining and has a direct-labor cost of $40 in assembly?

$44 Signup and view all the answers

If Enriquez used 70,000 machine hours in Machining, how much overhead was applied to Machining?

Amount not specified in the text Signup and view all the answers

What is the formula for calculating total overhead applied to a product?

Budgeted overhead rates x actual machine hours/labor cost used Signup and view all the answers

Why are overhead application rates considered estimates?

Because they are budgeted rates Signup and view all the answers

What will the total factory overhead applied amount to if the machining overhead is $280,000 and assembly overhead is $95,000?

$375,000 Signup and view all the answers

What will happen to the $375,000 estimate of Enriquez's overhead for the year?

It will become part of the cost of goods sold expense on Enriquez's income statement when the units produced are subsequently sold. Signup and view all the answers

What is the total factory overhead applied if the machining overhead is $280,000 and assembly overhead is $95,000?

$375,000 Signup and view all the answers

When will the $375,000 estimate of Enriquez's overhead for the year become part of the cost of goods sold expense?

When the units produced are subsequently sold. Signup and view all the answers

What is the significance of the $375,000 estimate of Enriquez's overhead?

It is an estimate of Enriquez's overhead for the year. Signup and view all the answers

Where will the $375,000 estimate of Enriquez's overhead appear?

On Enriquez's income statement as part of the cost of goods sold expense. Signup and view all the answers

What is the total factory overhead applied if machining overhead is $280,000 and assembly overhead is $95,000?

$375,000 Signup and view all the answers

How is the $375,000 estimate of Enriquez's overhead related to the cost of goods sold?

It will become part of the cost of goods sold expense when units produced are sold. Signup and view all the answers

What will the $375,000 estimate of Enriquez's overhead represent on the income statement?

A part of the cost of goods sold expense. Signup and view all the answers

What is the importance of the $375,000 estimate of Enriquez's overhead?

It is an estimation of Enriquez's overhead costs for the year. Signup and view all the answers

Canvas Student Module Quiz: Overhead Application Illustration

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Questions and Answers

What is the total overhead applied to a product that uses 6 machine hours in machining and has a direct-labor cost of $40 in assembly?

If Enriquez used 70,000 machine hours in Machining, how much overhead was applied to Machining?

If Enriquez had incurred $190,000 in direct labor cost, how much overhead was applied to Assembly?

What are overhead rates used for?

How is total overhead applied to a product calculated?

In the Enriquez Machine Parts Company, what is selected as the cost allocation base for applying overhead in the machining department?

What is the formula used to calculate total overhead applied to a product?

If a product uses 5 machine hours and has a direct labor cost of $40, how much overhead would be applied according to the given illustration?

If Enriquez had used 70,000 machine hours in machining, how much overhead was applied to machining?

What are budgeted overhead application rates based on?

What are budgeted overhead application rates?

How is total overhead applied to a product calculated?

In the Enriquez Machine Parts Company, what cost-allocation base is used in the machining department?

How much overhead would be applied to a product that uses 6 machine hours in machining and has direct-labor cost of $40 in assembly?

If Enriquez had incurred $190,000 in direct labor cost at the end of the year, what does this represent?

If Enriquez had used 70,000 machine hours in the machining department, what does this indicate?

What are the two main cost-allocation bases used in the Enriquez Machine Parts Company?

What are budgeted overhead application rates used for?

How is total overhead applied to a particular product calculated?

In Enriquez Machine Parts Company, what cost-allocation base is used for applying overhead in the machining department?

What is the total overhead applied to a product that uses 5 machine hours in machining and has a direct-labor cost of $40 in assembly?

If Enriquez used 70,000 machine hours in Machining, how much overhead was applied to Machining?

What is the formula for calculating total overhead applied to a product?

Why are overhead application rates considered estimates?

What will the total factory overhead applied amount to if the machining overhead is $280,000 and assembly overhead is $95,000?

What will happen to the $375,000 estimate of Enriquez's overhead for the year?

What is the total factory overhead applied if the machining overhead is $280,000 and assembly overhead is $95,000?

When will the $375,000 estimate of Enriquez's overhead for the year become part of the cost of goods sold expense?

What is the significance of the $375,000 estimate of Enriquez's overhead?

Where will the $375,000 estimate of Enriquez's overhead appear?

What is the total factory overhead applied if machining overhead is $280,000 and assembly overhead is $95,000?

How is the $375,000 estimate of Enriquez's overhead related to the cost of goods sold?

What will the $375,000 estimate of Enriquez's overhead represent on the income statement?

What is the importance of the $375,000 estimate of Enriquez's overhead?

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