Job Costing Review and Departmental rates - template
xlsx
keyboard_arrow_up
School
York University *
*We aren’t endorsed by this school
Course
2230
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
xlsx
Pages
5
Uploaded by HighnessAntelope7908
Question 1
The following costs pertain to Job 103 at Ryan's Auto Shop:
Direct Materials
Quantity
Price
cost
Engine Oil
14 ounces
$5 per ounce
$70 per ounce
Lubricant
22 ounces
$8 per ounce
$176 per ounce
Direct Labour
3 hours
$15 per DLH
$45 per ounce
MOH Costs (basaed on DLH)
3 hours
$8 per DLH
$24 per ounce
DLH = Direct Labour Hours
Calculate the total cost of job 103
Question 2
The Hanson firm uses job order costing at its plant.
It has a finishing department and a machining department
The company uses machine hours as the cost driver to allocate manufacturing overhead in the machining
Direct labour cost is used to allocate for the finishing department MOH.
Estimates for the current year follow:
DEPARTMENTS
Machining
Finishing
MOH cost
$500,000
$400,000
Machine Hours
20,000 hours
2,000 hours
DLH
5,000 hours
22,000 hours
DL Cost
$150,000
$500,000
Job 311 had the following:
Direct Materials Cost
$12,000
$2,000
DL Cost
$300
$1,200
DLH
10 hours
50 hours
Machine Hours (MH)
80 hours
8 hours
A) Determine the two departmental cost driver rates
B) Determine the total costs charged to job 311.
g department.
CASE
The following information was reported for the most recent period.
Department
Molding
Trimming
Painting
Budgeted MOH
$1,656,000
$645,000
$854,000
MH Capacity
12,750 hours
2,250 hours
5,100 hours
DLH Capacity
5,500 hours
9,200 hours
9,700 hours
Job 400
Department
Molding
Trimming
Painting
DM
$750
$25
$43
$818
DL Costs
$175
$90
$120
$385
DLH
5 hours
2 hours
3 hours
MH
5 hours
1 hours
0 hours
A) Compute plant-wide MOH rate using DLH capacity as plant-wide driver and planned (budgeted) MOH
B) Compute departmental MOH rates with departmental budgeted MOH divided by the appropriate cos
Machine hours (MH) are used for Molding department cost driver, direct labour hours (DLH) as the co
C) Using the job details for job 400, compare the cost of the job with the plantwide rate you calculated v
Department
Molding
Trimming
Painting
$750
$25
$43
$175
$90
$120
dlh
MOH OVERHEAD
10 hours 3 hours
3 hours
mh
129.3
129.3
129.3
1293
129 hours
387.9
$2,218
$244
$551
$750
$25
$43
$175
$90
$120
MOH
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Molding
cost
$1,656,000
driver(plant wide)
5,500 hours
MOH RATE
driver(dept)
$1,656,000
driver
12,750 hours
moh rate
129.882
H
st driver.
ost driver for Trimming and painting
vs the departmental rates.
plant wide
dept
Molding Trimming
Painting
Molding Trimming
Painting
2 hours
3 hours
5 hours
2 hours
3 hours
5 hours
1 hours
0 hours
5 hours
1 hours
0 hours
5 hours
3 hours
3 hours
11 hours
10 hours
3 hours
3 hours
$2,068.85
Trimming
Painting
total
$645,000
$854,000
$3,155,000
9,200 hours
9,700 hours
24,400 hours
$129.30
$645,000
$854,000
9,200 hours
9,700 hours
$70.11
$88.04