2. During the year, Job #123, a firm fixed-price Government contract for production of3,000 raincoats, will be started and completed. Estimate contract cost using the ratesdetermined in Question 1 and the following information. Use the Job Cost Summary tablefor your calculations. Note Department A's overhead rate was calculated by using directlabor hours as the base and Department B utilized machine hours.• Materials cost totaled $3,200 for Department A and $740 for Department B.Direct labor hours totaled 240 for Department A and 80 for Department B.Machine hours totaled 120 for Department A and 300 for Department B.Proposed / Negotiated Cost Summary for Job #123Cost ElementDepartment ADepartment BTotal3200254220879523970Direct Material740883610Direct LaborFactory Overhead13170Total Cost

Proposed cost summary: The Cost Proposal Summary Sheet is to show the Prime Contractor's costs…

Answered: 2. During the year, Job #123, a firm…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Michelle Company uses the Activity-based costing. It has identified the following overhead costs and cost drivers for the coming year; Budgeted cost P36,000 Overhead item Cost driver Budgeted Activity level No. of setups No. of inspections Machine set-up Inspection Material handling Engineering Budgeted direct labor cost was P100,000, and budgeted direct material cost was P280,000. The following information was collected on three jobs that were completed during the year: 900 120,000 4,000 No. of material moves 80,000 8,000 Engineering hours 60,000 3,000 Job 210 12,000 Job 220 Job 230 Direct materials 9,000 10,000 Direct labor 18,000 13,500 140 15,000 Units completed 100 200
[The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 54,000 machine-hours would be required for the period’s estimated level of production. It also estimated $1,000,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Molding Fabrication Total Machine-hours 23,000 31,000 54,000 Fixed manufacturing overhead cost $ 760,000 $ 240,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.00 During the year, the…
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1, 710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: Work-in-process inventory $ 33,810 Finished goods inventory $ 270,480 Cost of goods sold $ 1,386, 210 Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Mason Company has two manufacturing departments-Machining and Assembly. All of the company's manufacturing overhead costs are fixed costs. It provided the following estimates at the beginning of the year as well as the following information for Jobs A and B: Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Job A Direct labor-hours Machine-hours Job B Direct labor-hours Machine-hours Machining $5,054,000 19,000 266,000 Machining Assembly 5 10 11 2 Machining 4 12 Assembly 5 3 Assembly $361,000 266,000 14,000 Total 15 13 Total 9 15 Total $5,415,000 285,000 280,000 Required: 1. If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-hours and the Assembly Department is allocated based on direct labor-hours. How much…
Eli Lilly Corporation has their headquarters in Indiana. Lilly uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Lilly has provided the following estimated costs for next year: Direct Materials Direct Labor Rent on Factory Building Sales Salaries Depreciation on Factory Equipment Indirect Labor Production Supervisor's Salary Lilly estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: Multiple Choice O O $4.18 $2.88 $1.95 $7,000 $21,000 $16,000 $26,000 $9,500 $13,500 $18,500 $2.40
Ibra manufacturing uses machine hours as an activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was OMR 2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling OMR 2,100,000. The estimated machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? Select one: a. OMR 102,500 O b. OMR 105,000 Oc. None of the answers are correct O d. OMR 2,100 e. OMR 2,050
Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 54,000 machine-hours would be required for the period’s estimated level of production. It also estimated $1,000,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Molding Fabrication Total Machine-hours 23,000 31,000 54,000 Fixed manufacturing overhead cost $ 760,000 $ 240,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.00 During the year, the company had no beginning or ending inventories and it started,…
) Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January 31, Job 25 was completed. It required 6 machine hours and 1 direct labor hour. What is the amount of manufacturing overhead allocated to the completed job? (Round your intermediate calculations to one decimal place) A) $1,500.00 B) $437.50 C) $375.00 D) $350.00
Can you please show how its done? I got $75,000 and its not correct
Carla Vista Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,804,000 902,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $113,600, and 1819C, with total direct labour charges of $390,100. Machine hours were 287 hours for 17688 and 647 hours for 1819C. Direct materials issued for 1768B amounted to $220,000, and for 1819C they amounted to $420,500. Total charges to the Manufacturing Overhead Control account for the year were $898,500, and direct labour charges made to all jobs amounted to $1,583,600, representing 247,500 direct labour hours. There were no beginning inventories. In…
Thornton Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Home 1 Home 2 Home 3 Direct labor $ 66,000 $ 100,000 $ 178,000 Direct materials 109,000 139,000 181,000 Assume Thornton needs to allocate two major overhead costs ($51,600 of employee fringe benefits and $30,030 of indirect materials costs) among the three jobs.RequiredChoose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)
Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials Direct labor-hours Direct labor wage rate Machine-hours $2,418 74 labor-hours 13 per labor-hour 137 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

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