Required oblems Part k The Foundation: Cost Terms, Systems Design, and Cost Behavior “Profesional stat hours availible” sa measure ofthe capacity ofthe fim. Any hours available that rent charged 1 clcns accounts represent unused capi, 1. Mara Brinks san established clint whose pension pln was et up many yeas ago. I both 1998 and 1999, omy 2.5 hoor of professional staff ime were charged to Ms. ‘rinks account. I the company bases its predeteied overhead rate onthe estimated ‘ovetcad cost ad the estimated professional staff hours o he charged to lias how ‘ch overhead cost woud have been applied co Ms. Brinks's account in 19982 In 1999? ‘Suppose that th company bases its predetemined overhead rate om the estimated ‘overheat cost and the estimated professional stafT hours tobe charged to lint asin (1) love. Aso suppose thatthe atl professional staff hours charge to liens" accounts fn the actual overhead cost tim ot tobe exacly a estimated in both yeas. By how much would te overhead be under-r overapplied in 1998? In 19997 13, Refer back tothe data concerning Ms Binsin (1) above. Ifthe company bases ts predetermined overhead rat on te estimated overhead cost and the pojessomal stall Tors available, how mach overhead cost would have been applied o Ms. Brinks secon in 19987 In 1999? 44. Suppose tat the company’ bases its predetermined overead rate on the estimated ‘overhead ost and the professional staf hours avaiable asin (3) above, Also suppose tht ‘he actual professional staff hours crged to clients’ accounts and the actual overhead ‘oss tum out to be exttly as estimated in bat years. By how much would te overheat ‘beunder- or overapplid in 1998? In 1999? Required P2413. Straightforward Journal Entries; Partial FAccounts; Income Statement Almeds Products, Ine, uses a job-order cost system, The company's inventory balances om Apri the tr ofits fiscal year, were a follows Rave materiale $32,000 Work ta precess oiccoe 20,000, Fie soel + ‘s.000 ‘Dring the year, the following transactions were completed 4 Raw materials were purchased on account, $170,000 1, Raw materials ere ised fom the storeroom for use in production, $180,000 (80% diect and 20% indie, Employee salaries and wages were accrued as follows ree labor, $200,000 indie labor, $8200; and selling and administrative salaries, $9,000. ily ost were inured inthe factory, $65,000. ‘Advertising costs were incurred, $100,000. Prep insurance expired during the year, $20,000 (0 related to factory operation, and U0 related to sling and administrative activites {& Depreciation was recoded, $180,000 (85% related to factory aes and 15% related to selling and administrative asses). ‘Manufacturing overhead was applied to jos a the rte of 1758 of direct labor cost {Goo that cost $700,000 to manufactire according to ther job cost sheets were transfered he finished goods warehouse Sales-orthe year totale $1,000,000 and wer all on account The ttl costo ‘manfactie these poodsacconing to their jo cost sheets was $720,000. nee 1, Prepac uma entries to record the transactions for the yea. 2. Prepare accounts for Raw Materials, Work in Process, Finished Goods, Manuf (Overhead nd Cost of Goods Sold. Post the appropriate pars of your jal ens 0 these accounts, Compute the cong balance in each account, (Dont forget to enter the toginning balances in the inventory accounts) 3. Is Manufacturing Overead underapplied or overapplied for the yea? Prepare a journal cniry 10 close this alae to Cos of Goods Sol