Assume the St. Cloud plant uses three separate  overhead rates to assign overhead costs to jobs. b-1. Find the plant wide overhead rate by using expected machine hours. -plantwide overhead per machine hour? b-2. Find the department overhead rate using expected machine hours for Department A and Department B. -department A overhead per machine hour? -department B overhead per machine hour? b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed in b-1 and b-2. -manufacturing cost per unit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Assume the St. Cloud plant uses three separate  overhead rates to assign overhead costs to jobs.

b-1. Find the plant wide overhead rate by using expected machine hours.

-plantwide overhead per machine hour?

b-2. Find the department overhead rate using expected machine hours for Department A and Department B.

-department A overhead per machine hour?

-department B overhead per machine hour?

b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed in b-1 and b-2.

-manufacturing cost per unit?

 

image attached

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job
order costing system for its batch production processes. The St. Cloud plant has two departments through which most
jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $400,000. During the past year, actual plantwide overhead was $390,000. Each department's
overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from
the St. Cloud plant for the past year are as follows.
Department
Department
A
B
Budgeted department overhead
(excludes plantwide overhead)
Actual department overhead
Expected total activity:
$ 100,000
120,000
$ 453, 600
465, 600
Direct labor hours
52,000
25,000
Machine-hours
16,000
54,000
Actual activity:
Direct labor hours
53,500
24,000
Machine-hours
16,800
56,000
For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for
several jobs. Projected data pertaining only to job no. 110 are as follows.
Direct materials
$22,000
Direct labor cost:
Department A (3,000 hr)
45,000
Department B (1,100 hr)
Machine-hours projected:
10,800
Department A
240
Department B
Units produced
1,200
8,000
Transcribed Image Text:The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $400,000. During the past year, actual plantwide overhead was $390,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department Department A B Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: $ 100,000 120,000 $ 453, 600 465, 600 Direct labor hours 52,000 25,000 Machine-hours 16,000 54,000 Actual activity: Direct labor hours 53,500 24,000 Machine-hours 16,800 56,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. Direct materials $22,000 Direct labor cost: Department A (3,000 hr) 45,000 Department B (1,100 hr) Machine-hours projected: 10,800 Department A 240 Department B Units produced 1,200 8,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

Blurred answer
Knowledge Booster
Costing Systems
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
  • SEE MORE QUESTIONS
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