Compute the predetermined overhead rates used in the Molding Department and the Painting Department. b Answered: he ABC Company is xA. Quiz: Test 1: Chapters 1 & 2A. Week 2 AssignmentBookshelf - Managerial Accour X1 VitalSource Bookshelf: Manage x+A online.vitalsource.com/#/books/9781259995484/cfi/6/24!/4/2/60/2/48/2@0:47.0Wilkes?A < Chapter 2 Job-Order ...PROBLEM 2–19 Multiple Predetermined Overhead Rates; Applying Overhead LO2-1, LO2-2, LO2-4High Desert Potteryworks makes a variety of pottery products thatpredetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based onmachine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the followingsells to retailers. The company uses a job-order costing system in which departmentalGo to Chapter 2 Job-OrderCosting: Calculating Unit Pro.estimates:Department86Foundational 15MoldingPaintingExercisesDirect labor-hours.12,00060,00087Machine-hours70.0008,00092ProblemsFixed manufacturing overhead cost$497.000$615,000Variable manufacturing overhead per machine-hour$1.5095CaseVariable manufacturing overhead per direct labor-hour$2,00Appendix 2A: Activity-Basedpage 9496Absorption CostingJob 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:99Glossary (Appendix 2A)DepartmentMoldingPaintingAppendix 2A: Exercises,Problems, and Case99Direct labor-hours.3084Machine-hours11020Direct materials$770$1,332Appendix 2B: The103Predetermined Overhead.Direct labor cost$525$1,470Appendix 2B: Exercises,Problem, and CaseRequired:1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.2. Compute the total overhead cost applied to Job 205.106O bob.jpgShow all9:10 PMP Type here to searchHiO G 4)1410/1/2020

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Answered: Compute the predetermined overhead…

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Compute the predetermined overhead rates used in the Molding Department and the Painting Department.

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Compute the predetermined overhead rates used in the Molding Department and the Painting Department.

b Answered: he ABC Company is x
A. Quiz: Test 1: Chapters 1 & 2
A. Week 2 Assignment
Bookshelf - Managerial Accour X
1 VitalSource Bookshelf: Manage x
+
A online.vitalsource.com/#/books/9781259995484/cfi/6/24!/4/2/60/2/48/2@0:47.0
Wilkes?
A < Chapter 2 Job-Order ...
PROBLEM 2–19 Multiple Predetermined Overhead Rates; Applying Overhead LO2-1, LO2-2, LO2-4
High Desert Potteryworks makes a variety of pottery products that
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
sells to retailers. The company uses a job-order costing system in which departmental
Go to Chapter 2 Job-Order
Costing: Calculating Unit Pro.
estimates:
Department
86
Foundational 15
Molding
Painting
Exercises
Direct labor-hours.
12,000
60,000
87
Machine-hours
70.000
8,000
92
Problems
Fixed manufacturing overhead cost
$497.000
$615,000
Variable manufacturing overhead per machine-hour
$1.50
95
Case
Variable manufacturing overhead per direct labor-hour
$2,00
Appendix 2A: Activity-Based
page 94
96
Absorption Costing
Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:
99
Glossary (Appendix 2A)
Department
Molding
Painting
Appendix 2A: Exercises,
Problems, and Case
99
Direct labor-hours.
30
84
Machine-hours
110
20
Direct materials
$770
$1,332
Appendix 2B: The
103
Predetermined Overhead.
Direct labor cost
$525
$1,470
Appendix 2B: Exercises,
Problem, and Case
Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.
2. Compute the total overhead cost applied to Job 205.
106
O bob.jpg
Show all
9:10 PM
P Type here to search
Hi
O G 4)
14
10/1/2020

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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A manufacturer reports three activities: assembling components into products; product design; and purchase order processing. Determine whether each of the following cost drivers relates to assembly, design, or purchase order processing. Cost Driver 1. Number of design changes 2. Finishing machine hours 3. Number of design hours 4. Number of purchase orders received 5. Number of purchase orders processed 6. Direct labor hours to finish production Activity
Describe the types of manufacturing overhead.
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