2. Compute the total overhead cost applied to Job 205. b Answered: he ABC Company is xA. Quiz: Test 1: Chapters 1 & 2A. Week 2 AssignmentBookshelf - Managerial Accour X1 VitalSource Bookshelf: Manage x+A online.vitalsource.com/#/books/9781259995484/cfi/6/24!/4/2/60/2/48/2@0:47.0Wilkes?A < Chapter 2 Job-Order ...PROBLEM 2–19 Multiple Predetermined Overhead Rates; Applying Overhead LO2-1, LO2-2, LO2-4High Desert Potteryworks makes a variety of pottery products thatpredetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based onmachine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the followingsells to retailers. The company uses a job-order costing system in which departmentalGo to Chapter 2 Job-OrderCosting: Calculating Unit Pro.estimates:Department86Foundational 15MoldingPaintingExercisesDirect labor-hours.12,00060,00087Machine-hours70.0008,00092ProblemsFixed manufacturing overhead cost$497.000$615,000Variable manufacturing overhead per machine-hour$1.5095CaseVariable manufacturing overhead per direct labor-hour$2,00Appendix 2A: Activity-Basedpage 9496Absorption CostingJob 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:99Glossary (Appendix 2A)DepartmentMoldingPaintingAppendix 2A: Exercises,Problems, and Case99Direct labor-hours.3084Machine-hours11020Direct materials$770$1,332Appendix 2B: The103Predetermined Overhead.Direct labor cost$525$1,470Appendix 2B: Exercises,Problem, and CaseRequired:1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.2. Compute the total overhead cost applied to Job 205.106O bob.jpgShow all9:10 PMP Type here to searchHiO G 4)1410/1/2020

Answered: Image /qna-images/answer/2c82f8fd-cf27-45a4-9371-5050190e49c8.jpg

Answered: 2. Compute the total overhead cost…

Business

Accounting

2. Compute the total overhead cost applied to Job 205.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Calculate the overhead cost assigned to the job if the company used the overhead rates developed in…

A: Total overhead cost (step down method) $84,522Total overhead cost (Direct method)…

Q: 22) The cost driver for labour supervising activity is: a. Number of checks b. Direct labour hours…

A: Cost drivers refers to the direct cause for a cost to increase or decrease.

Q: Differences between a job order cost system and a process cost system include all of the following…

A: Job Order Cost System and Process Cost System are two different costing methods used in managerial…

Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted…

A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and…

Q: Finished Goods Inventory 8,800 Work-in-process inventory is made up of three jobs with the following…

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: Calculate the total manufacturing costs for each job.

A: Overhead refers to the ongoing business expenses not directly attributed to creating a product or…

Q: A company estimates the following manufacturing costs at the beginning of the period: direct labor,…

A: The predetermined overhead rates can be calculated by dividing factory overhead by the allocation…

Q: the following statements about predetermined overhead rates are correct, EXCEPT: O a. based on…

A: Overhead are those expenses of the entity/firm which it made after getting the prime cost of the…

Q: Which of the following costing methods allocates overhead costs based on the direct labor hours or…

A: Lets understand the basics.Overhead costs can be allocated to product using,(1) Traditional costing…

Q: What will the unit product cost under Full costing method.

A: Formula: Unit product cost = Direct material + Direct labor + Variable manufacturing overhead +…

Q: 3. In a job-order costing system, a debit balance of the manufacturing overhead account represents:…

A: The correct answer is Option (B).

Q: Knowledge Check 01 In the cost formula (Y = a +bX) that is used to estimate the total manufacturing…

A: In the cost formula (Y = a + bX) used to estimate total manufacturing overhead cost, the symbol "a"…

Q: 4. If Job P includes 20 units, what is its unit product cost? 5. What is the total manufacturing…

A: Manufacturing overhead are the total indirect costs that occured during production of the product.…

Q: Which method of determined operating income is used internally for decision making and considers…

A: Variable costing method / Contribution margin income statement method of determined operating income…

Q: 14. An example of an activity cost pool is a number of setups. b. setting up machines e number of…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Hagy Corporation has an activity-based costing system with three activity cost pools-Processing.…

A: Under Activity Based Costing (ABC) system, overheads are allocated to the departments based on…

Q: What is the purpose of the job cost sheet in a job-order costing system?

A: Job order costing system is an accounting system which is applied when unique batches of goods and…

Q: All indirect expenditure incurred from the time the product is completed until it reaches its…

A: Expenses incurred from product completion to destination is called Distribution Overhead....

Q: predetermined overhead rate is calculated by dividing actual overhead cost by the actual amount of a…

A: The overhead is applied to the product on the basis of predetermined overhead rate. The…

Q: 10. How much manufacturing gverhead was applied from the Molding Department to Job P and how much…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Figuring a predetermined overhead rate using direct materials as the allocation base. $130500…

A: Given information, Estimated manufacturing overhead costs are $130500 and direct materials are…

Q: Indicate whether each of the following costs incurred by a manufacturer would be considered a…

A: There are two type of cost-Product cost and period cost Product cost-these cost are directly related…

Q: Direct material used Direct labor Variable manufacturing overhead Fixed manufacturing overhead…

A: Formula: Per Unit cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed…

Q: Req 1 Req 2 and 3 Calculate the activity rates. Note: Round your answers to 2 decimal places.…

A: In the domain of accounting the concept of activity bases costing is very important. In an activity…

Q: The total cost of a job is calculated by adding the total of direct labor cost, direct materials…

A: Total manufacturing cost is the total cost incurred in the manufacturing of the product during the…

Q: For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago,…

A: Manufacturing costs;Manufacturing costs:Manufacturing costs refer to the cost incurred to…

Q: When used as the denominator in the calculation of an overhead rate, which of the following will…

A: Capacity or activity level helps to determine the maximum or ideal level at which production can be…

Q: Which one of the following is not a unit level driver? Select one: а. Direct labor hours b.…

A: Drivers are those objects which causes the costs to arise or occur. Unit level drivers are those…

Q: Overheads that are concerned with the production function are known as________ a. Selling Overhead…

A: Various departments in the business incurs overhead cost that can be classified to various…

Q: How to solve the factory overhead rate of 2/3 of the labor cost?

A: Lets understand the basics.Factory overhead is a all indirect cost incurred for the production of…

Q: true (T) or false (F) Costs per job are computed in both job order and process costing systems.

A: Job order costing: Job order cost system provides a separate record of each particular quantity of…

Q: With ABC, overhead costs are assigned to each product based on ________. Group of answer choices…

A: The overhead rate is calculated as the estimated overhead costs divided by the estimated base…

Q: 18) In traditional approach, overheads are absorbed based on: a. All the options listed b. Direct…

A: In the traditional approach, overheads are allocated on the basis of various drivers like machine…

Q: The weighted average method computes (blank) to determine the total amount of costs transferred out…

A: Process costing is a costing method used in companies with numerous stages or departments to assess…

Q: [The following information applies to the questions displayed below.] Cane Company manufactures two…

A: Lets understand the basics.Fixed manufacturing overhead do not change with the change in sales…

Q: Which of the following data is relevant only to the activity-based costing method Activity cost…

A: Activity based costing is used to allocate overhead to respective activities based on activity…

Q: Identify the following features as applying more to job order operations (J), process operations…

A: Process operations: Process operations means where production of a product takes more than one…

Q: INFORMATION Visa Limited manufactures two products and the company is keen on applying the…

A: Activity Based Costing (ABC Costing)Under the ABC Costing overheads are allocated on the basis of…

Q: Which of the following is a method used to allocate overhead costs based on the activities that…

A: A) Job costingJob costing involves the accumulation of the costs of materials, labor, and overhead…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

2. Compute the total overhead cost applied to Job 205.

b Answered: he ABC Company is x
A. Quiz: Test 1: Chapters 1 & 2
A. Week 2 Assignment
Bookshelf - Managerial Accour X
1 VitalSource Bookshelf: Manage x
+
A online.vitalsource.com/#/books/9781259995484/cfi/6/24!/4/2/60/2/48/2@0:47.0
Wilkes?
A < Chapter 2 Job-Order ...
PROBLEM 2–19 Multiple Predetermined Overhead Rates; Applying Overhead LO2-1, LO2-2, LO2-4
High Desert Potteryworks makes a variety of pottery products that
predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on
machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following
sells to retailers. The company uses a job-order costing system in which departmental
Go to Chapter 2 Job-Order
Costing: Calculating Unit Pro.
estimates:
Department
86
Foundational 15
Molding
Painting
Exercises
Direct labor-hours.
12,000
60,000
87
Machine-hours
70.000
8,000
92
Problems
Fixed manufacturing overhead cost
$497.000
$615,000
Variable manufacturing overhead per machine-hour
$1.50
95
Case
Variable manufacturing overhead per direct labor-hour
$2,00
Appendix 2A: Activity-Based
page 94
96
Absorption Costing
Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:
99
Glossary (Appendix 2A)
Department
Molding
Painting
Appendix 2A: Exercises,
Problems, and Case
99
Direct labor-hours.
30
84
Machine-hours
110
20
Direct materials
$770
$1,332
Appendix 2B: The
103
Predetermined Overhead.
Direct labor cost
$525
$1,470
Appendix 2B: Exercises,
Problem, and Case
Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.
2. Compute the total overhead cost applied to Job 205.
106
O bob.jpg
Show all
9:10 PM
P Type here to search
Hi
O G 4)
14
10/1/2020

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much manufacturing overhead was allocated to Job #222?
37.Applied overhead consists of which of the following? a. actual activity times predetermined overhead rate b. estimated activity times predetermined overhead rate c. actual activity times actual overhead rate d. estimated activity times actual overhead rate
Prime cost is the (Total )summation of Select one: a. Direct material +Direct Labour +Direct Expenses b. Direct material +Direct Labour + Selling Overheads c. Direct material +Direct Labour +Factory overheads d. Direct material +Direct Labour +Office Overheads
Q5. Explain the treatment of over and under absorption of overheads in cost accounts.
10. Determine difference between the three methods used for allocating factory overhead cost to products.
Help
2. Which of the following is a possible cost driver that may be used in calculating a company's predetermined overhead rate? A) Direct labour hours B) Direct labour dollars C) Machine hours D) All of the above
24: Seat Belt Inc., produces three sizes of seat belts: small, medium, and large. A seat belt pattern is first stenciled onto fabric in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the seat belt is cut and sewed together. Seat Belt Inc. uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Overhead Dollars Direct Labor Hours Pattern Department: Cut and Sew Department Overhead: 40,000 dh 60,000 dlb $300,000 $600,000 $900,000 Totals: 100,000 The Company decides to use the Multiple Department Overhead method, and Direct Labor Hours are used to allocate the overhead. We know the following for each type of seatbelt: Small Medium 1.0 dlh 1.5 dlb 2.5 dlh Large 2.0 dlh 3.0 dlb 5.0 dla Pattern Department: Cut and Sew Department: 1.5 dla 2.5 dlh 4.0 dlk Total Per Unit Part I: Calculate the Departmental Factory Overhead Rate for each…
In traditional approach, overheads are absorbed based on: a. Machine hours b. Direct labour c. All the options listed d. Direct wages
The following information was taken from the annual manufacturing overhead cost budget of Indigo Company: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Normal production level in units Standard labour hours per unit $36,660 $19,500 15,600 3,900 During the year, 3,700 units were produced, 15,000 hours were worked, and the actual manufacturing overhead was $55,980. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours.