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1 Mc Graw Exercise 2-13 (Static) Departmental Predetermined Overhead Rates [LO2-1, LO2-2, LO2-4] White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Total fixed manufacturing overbead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting 6 NO $ 500 $ 108 Required 1 Finishing 20 4 Cutting 6,000 48,000 $ 264,000 $ 2.00 $ 310 $360 Required 2 Required 3 Finishing 30,000 5,000 $365,000 $ 4.00 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs below.

1 Mc Graw Exercise 2-13 (Static) Departmental Predetermined Overhead Rates [LO2-1, LO2-2, LO2-4] White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Total fixed manufacturing overbead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting 6 NO $ 500 $ 108 Required 1 Finishing 20 4 Cutting 6,000 48,000 $ 264,000 $ 2.00 $ 310 $360 Required 2 Required 3 Finishing 30,000 5,000 $365,000 $ 4.00 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Machine-hours Direct materials Direct labor cost 80 $500 $ 108 Using the predetermined overhead rates that you computed in requirement (1), co 203. 3. Would you expect substantially different amounts of overhead cost to be assigne predetermined overhead rate based on direct labor-hours, rather than using depan Complete this question by entering your answers in the tabs below. Predetermined overhead rate 4 $ 310 $360 Required 1 Required 2 Compute the predetermined overhead rate for each department. (Round your answers to Cutting Department per MH Finishing Department per DLH Required 3 Required 1 Required 2 Required 3 (Required 1 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assi 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs below. < Required 1 Required 2 > Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost Required 3 >
Transcribed Image Text:Machine-hours Direct materials Direct labor cost 80 $500 $ 108 Using the predetermined overhead rates that you computed in requirement (1), co 203. 3. Would you expect substantially different amounts of overhead cost to be assigne predetermined overhead rate based on direct labor-hours, rather than using depan Complete this question by entering your answers in the tabs below. Predetermined overhead rate 4 $ 310 $360 Required 1 Required 2 Compute the predetermined overhead rate for each department. (Round your answers to Cutting Department per MH Finishing Department per DLH Required 3 Required 1 Required 2 Required 3 (Required 1 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assi 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs below. < Required 1 Required 2 > Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost Required 3 >
1 Mc Graw Exercise 2-13 (Static) Departmental Predetermined Overhead Rates [LO2-1, LO2-2, LO2-4] White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-houre Total fixed manufacturing overhead coat Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Required 1 6 NO $ 500 $ 108 Cutting 6,000 48,000 $ 264,000 $ 2.00 Finishing 20 4 $310 $360 Finishing 30,000 5,000 $365,000 Required 2 Required 3 $4.00 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs below.
Transcribed Image Text:1 Mc Graw Exercise 2-13 (Static) Departmental Predetermined Overhead Rates [LO2-1, LO2-2, LO2-4] White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-houre Total fixed manufacturing overhead coat Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Required 1 6 NO $ 500 $ 108 Cutting 6,000 48,000 $ 264,000 $ 2.00 Finishing 20 4 $310 $360 Finishing 30,000 5,000 $365,000 Required 2 Required 3 $4.00 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs below.
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