Homework Help is Here – Start Your Trial Now!
Business
Accounting
4-17 Actual costing, normal costing, accounting for manufacturing overhead. Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manu- facturing labor costs. Destin provides the following information: Budget for 2011 $2,000,000 Actual Results for 2011 Direct material costs Direct manufacturing labor costs Manufacturing overhead costs $1,900,000 1,450,000 2,755,000 1,500,000 2,700,000 1. Compute the actual and budgeted manufacturing overhead rates for 2011. 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2011, compute the under- or overallocated manufacturing overhead under normal cost- ing. Why is there no under- or overallocated overhead under actual costing?

4-17 Actual costing, normal costing, accounting for manufacturing overhead. Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manu- facturing labor costs. Destin provides the following information: Budget for 2011 $2,000,000 Actual Results for 2011 Direct material costs Direct manufacturing labor costs Manufacturing overhead costs $1,900,000 1,450,000 2,755,000 1,500,000 2,700,000 1. Compute the actual and budgeted manufacturing overhead rates for 2011. 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2011, compute the under- or overallocated manufacturing overhead under normal cost- ing. Why is there no under- or overallocated overhead under actual costing?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I

4-17 Actual costing, normal costing, accounting for manufacturing overhead. Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manu- facturing labor costs. Destin provides the following information: Budget for 2011 Actual Results for 2011 Direct material costs $2,000,000 $1,900,000 1,500,000 Direct manufacturing labor costs Manufacturing overhead costs 1,450,000 2,700,000 2,755,000 1. Compute the actual and budgeted manufacturing overhead rates for 2011. 2. During March, the job-cost record for Job 626 contained the following information: Required Direct materials used $40,000 $30,000 Direct manufacturing labor costs Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2011, compute the under- or overallocated manufacturing overhead under normal cost- ing. Why is there no under- or overallocated overhead under actual costing?
Transcribed Image Text:4-17 Actual costing, normal costing, accounting for manufacturing overhead. Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manu- facturing labor costs. Destin provides the following information: Budget for 2011 Actual Results for 2011 Direct material costs $2,000,000 $1,900,000 1,500,000 Direct manufacturing labor costs Manufacturing overhead costs 1,450,000 2,700,000 2,755,000 1. Compute the actual and budgeted manufacturing overhead rates for 2011. 2. During March, the job-cost record for Job 626 contained the following information: Required Direct materials used $40,000 $30,000 Direct manufacturing labor costs Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2011, compute the under- or overallocated manufacturing overhead under normal cost- ing. Why is there no under- or overallocated overhead under actual costing?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Administration and Procedures
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS