PR 3-48 (Algo) Job-Order Costing: Focus on Overhead and Cost Drivers (LO 3-2,3-4, 3-5, 3-7)[The following information applies to the questions displayed below.]Garcia, Incorporated, uses a job-order costing system for its products, which pass from the Machining Department, to theAssembly Department, to finished-goods inventory. The Machining Department is heavily automated, in contrast, theAssembly Department performs a number of manual-assembly activities. The company applies manufacturing overheadusing machine hours in the Machining Department and direct-labor cost in the Assembly Department. The followinginformation relates to the year just ended:ItemsBudgeted manufacturing overheadActual manufacturing overheadBudgeted direct-labor cost (based on practical capacity)Actual direct-labor cost.Budgeted machine hours (based on practical capacity)Actual machine hoursThe data that follow pertain to job number 775, the only job in production at year-end.AssemblyDepartmentItemsDirect materialDirect laborMachine hoursMachiningDepartment$6,800$ 58,600150MachiningDepartment$ 24,500$ 27,900360Selling and administrative expense amounted to $2,500,000$ 4,000,0004,270,0001,500,0001,450,000400,000425,000wwwAssemblyDepartment$ 3,080,0003,050,0005,600,0005,780,000100,000110,000 PR 3-48 (Algo) Part 4 Determine whether overhead was under- or overapplied...4. Determine whether overhead was under- or overapplied during the year in the Assembly Department.

Name: PR 3-48 (Algo) Job-Order Costing: Focus on Overhead and Cost Drivers
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Description: PR 3-48 (Algo) Job-Order Costing: Focus on Overhead and Cost Drivers (LO 3-2,3-4, 3-5, 3-7)[The following information applies to the questions displayed below.]Garcia, Incorporated, uses a job-order costing system for its products, which pass from t

The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

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(Algo) Job-Order Costing: Focus on Overhead and Cost Drivers (LO 3-2, 3-4,3-5,3-7) The following information applies to the questions displayed below.] Garcia, Incorporated, uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: Items Budgeted manufacturing overhead Actual manufacturing overhead Machining Machining Department $4,000,000 Budgeted direct-labor cost (based on practical capacity) Actual direct-labor cost. Budgeted machine hours (based on practical capacity) Actual machine hours The data that follow pertain to job number 775, the only job in production at year-end. Assembly 4,270,000 1,500,000 1,450,000 400,000 425,000 Assembly Department $ 3,080,000 3,050,000 5,600,000 5,780,000 100,000 110,000

(Algo) Job-Order Costing: Focus on Overhead and Cost Drivers (LO 3-2, 3-4,3-5,3-7) The following information applies to the questions displayed below.] Garcia, Incorporated, uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: Items Budgeted manufacturing overhead Actual manufacturing overhead Machining Machining Department $4,000,000 Budgeted direct-labor cost (based on practical capacity) Actual direct-labor cost. Budgeted machine hours (based on practical capacity) Actual machine hours The data that follow pertain to job number 775, the only job in production at year-end. Assembly 4,270,000 1,500,000 1,450,000 400,000 425,000 Assembly Department $ 3,080,000 3,050,000 5,600,000 5,780,000 100,000 110,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Assigning indirect costs to departments is completed by ________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory In a process costing system, which account shows the overhead assigned to the department? cost of goods sold • finished goods inventory raw material inventory work in process inventory A print shop produces custom paintings. It has received four different orders (a/B/C/D) The total cost for the four orders is labor $6000, materials $10,000 and overheads for 5,000. What processes/systems would you implement if you wanted to know the cost for each of the orders which are not similar.
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Can someone help me with this question? I keep getting the answers wrong. High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental 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 estimates: Department Molding Painting Direct labor-hours 37,000 52,900 Machine-hours 88,000 40,000 Fixed manufacturing overhead cost $ 228,800 $ 529,000 Variable manufacturing overhead per machine-hour $ 2.20 - Variable manufacturing overhead per direct labor-hour - $ 4.20 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information…
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Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department.
Which one of the following is not correct about job-order costing systems and process costing systems? O a Job order costing systems and process costing systems use similar manufacturing accounts. O b. None of the given answers Oc In process costing systems cost accumulation is done on a department basis. Od. Job order costing systems and process costing systems have different flow of costs through manufacturing accounts, O e. Job order costing systems normally used when there are varieties of products to produced. Which one of the following is not correct regarding the predetermined overhead rate? O a The predetermined overhead rate is normally calculated at the beginning of the period. Ob. The predetermined overhead rate is used to assign manufacturing overhead costs to cost objects such as products. OC None of the given answers. O d. The predetermined overhead rate uses actual figures for the manufacturing overhead cost but estimated figures for the cost allocation basis amount. O…
Please refer to the picture. The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 2 using activity-based costing. Direct Labor Hours Machine Hours Operating Dept. 1 1,020 9,600 Operating Dept. 2 2,380 6,400 Totals 3,400 16,000 Factory overhead costs Rent and utilities $ 22,900 Indirect labor 18,500 Depreciation - Equipment 15,600 Total factory overhead $ 57,000
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