a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Total Firing Department RM Polis hing Department RM RM Overhead 405,000 110,000 515,000 128,750 90,000 100,000 28,750 90,000 Direct labour hours Kin hours Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Firing Department Polishing Department Total RM RM RM Overhead 9,370 8,600 34,000 43,370 Direct labour hours 2,350 10,950 Kiln hours 7.400 7,400 Required: i) Calculate the predetermined overhead rates for the firing and polishing departments. ii) Calculate the overhead applied to production in each department for the month of June. iii) Identify whether overhead variance for each department has been overapplied or underapplied?

a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Total Firing Department RM Polis hing Department RM RM Overhead 405,000 110,000 515,000 128,750 90,000 100,000 28,750 90,000 Direct labour hours Kin hours Refer to the information for Juju Sdn. Bhd. above. Juju uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Firing Department Polishing Department Total RM RM RM Overhead 9,370 8,600 34,000 43,370 Direct labour hours 2,350 10,950 Kiln hours 7.400 7,400 Required: i) Calculate the predetermined overhead rates for the firing and polishing departments. ii) Calculate the overhead applied to production in each department for the month of June. iii) Identify whether overhead variance for each department has been overapplied or underapplied?

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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A company operates a job costing system. The estimated costs for job #45 are as follows: Direct materials 120 metres @ $20 per metre Direct labour 192 hours @ $8 per hour Variable production overheads are recovered at the rate of $3 per direct labour hour. Fixed production overheads for the year are budgeted to be $2,400,000 and are to be recovered based on the total of 240,000 direct labour hours for the year. Other overheads, in relation to selling, distribution and administration, are recovered at the rate of $960 per job. What is the total cost of job # 45? O a $7,392.00 O b. $6.432.00 Oc. $7,200.00 O d. $3,936.00
Blue Industries has two departments ABC and XYZ and uses a job cost system. In determining manufacturing costs, Blue applies manufacturing overhead to production orders based on direct labor cost during the departmental rates predetermined at the beginning of the year based on the annual budget. The budget for the two departments are as follows: ABC XYZ Direct Materials P630,000 P90,000 Direct Labor 180,000 720,000 Factory Overhead 540,000 360,000 Actual materials and labor costs for Job 678 were: Direct Materials P22,500 Direct Labor Dept ABC P7,200 Dept XYZ 10,800 18,000 What is the total manufacturing costs associated with Job 678?
Sterner Company computes its predetermined overhead application rate using direct labor hours as the activity base. Estimated and actual overhead costs and direct labor hours for the year were as follows:Estimated ActualManufacturing overhead costs . . . . . . . . . . . . $126,000 $118,020Direct labor hours . . . . . . . . . . . . . . . . . . . . . . 10,000 9,200Based on this information, manufacturing overhead wasa. underapplied by $2,100.b. underapplied by $3,420.c. overapplied by $3,420.d. overapplied by $5,580.e. none of the above.
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Assume that department C applies factory overhead based on units produced with an estimate of 5,000 units for the period. The actual units produced for the current period was 4800. If the company uses the step method in allocating service department costs, how much is the applied factory overhead of department C.* Etona company has two service departments and three producing departments. The following data was made avalable: Service Departments Engineering 400 Producing Departments Maintenance A Maintenance Hrs Engineering Hrs Overhead Costs 800 200 200 800 400 400 P90,000 400 P12,000 P54,000 P80,000 P50,000 Your answer
The following Information relates to a company that has two manufacturing departments. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Dept. X 4,000 $22,000 $ 3.00 Dept. Y 6,000 $20,400 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 10,eee $42,400 During the perlod, the company started and completed two Jobs--Job A and Job B. Data concerning those two Jobs follow: Job A Job B Direct materials $22,500 $8,400 $22,700 $8,000 2,500 1,250 Direct labor cost Molding machine-hours Assembly machine-hours 1,500 4,750 Requlred: 1. Assume the company uses a plantwide predetermined manufacturing overhead rate based on machine hours. a. Calculate the overhead rate. (Round your answer to 2 decimal places.) b. Calculate the amount of manufacturing overhead applied to Job A. (Do not round Intermedlate calculatlons.) c. Calculate the…