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Acct 505 Final

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Submitted By adam411
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1. (TCO F) Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below. Estimated machine hours - 85,000 Estimated variable manufactruring overhead - $5.55 per machine hour Estimated total fixed manufacturing overhead - $951,888 Compute the company's predetermined overhead rate.

Total variable manufacturing overhead = $5.55 * 85000 = $471750

So, total predetermined overhead = $951888 - 471450 = $480138

SO, Predetermined overhead rate = $480138 / 85000 = $5.648 per machine hour

|Cash balance, beginning |27,000 |
|Add receipts |136,000 |
|Total cash available for needs |163,000 |
| | |
|Disbursements |128,000 |
|Minimum cash balance desired |50,000 |
|Total cash needed |178,000 |
| | |
|Cash excess (deficiency) |(15,000) |
| | |
|Financing: | |
|Borrowing |15,000 |
|Repayment | |
|Interest | |
|Total effects of financing |15,000 |
|

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