a. Compute the factory overhead rate using the cutting department during the year?b.If JOB 101 contained 100 units what would be the unit cost?c.What would be the under or over applied factory overhead in the sewing department at the end of the year? 4 Peter co makes shirts that it sells to retailers. The company uses a job order costing systemin which predetermined overhead rates are used to apply factory overhead cost to jobsThe predetermined rate in the sewing department is based on machine hours and in cuttingdepartment is based on direct labor cost.The following estimates are made at the beginning of the year:Direct Labor HoursMachine HoursDirect Material CostDirect Labor CostFactory Overhead CostSewing24,000140,0001,020.000260,0001,204.000Cutting120,00010,0001.300,000840,0001,470,000Job 101 was startod on Feb I and completod on Feb 25. The company's cost rocords show the followinginformation concoming the job.Sewing60220Cutting170Direct Labor HoursMachine HoursMaterial Used| Direct Labor Cost40940664580At the end of the year, the recoerds of the company shơw the actual cost and data for all the jobs workedduring the year.Direct Labor HoursMachine lloursDirect Material CostDirect Labor CostFactory Overhead CostSewing20,000130,000S60.000216.000L140000Cutting124,00018,0001.360,000872.0001.500.000

Factory overhead allocation: the factory overhead of a company can only be calculated at the end of…

Compute the factory overhead rate using the cutting department during the year? b.If JOB 101 contained 100 units what would be the unit cost? c.What would be the under or over applied factory overhead in the sewing department at the end of the year?

Compute the factory overhead rate using the cutting department during the year? b.If JOB 101 contained 100 units what would be the unit cost? c.What would be the under or over applied factory overhead in the sewing department at the end of the year?

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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