Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturing overhead costs using direct manufacturing labor costs. Creative Solutions provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2019 Actual Results for 2019 $2,000,000 $1,500,000 $2666015 $1,900,000 $1,450,000 Required: Compute the cost of Job X using actual costing O a. 118511 O b. 88511 OC 128511 O d. 148015 $2828034 During March, the job-cost record for Job X contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Taylor

Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturing overhead costs using direct manufacturing labor costs. Creative Solutions provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2019 Actual Results for 2019 $2,000,000 $1,500,000 $2666015 $1,900,000 $1,450,000 Required: Compute the cost of Job X using actual costing O a. 118511 O b. 88511 OC 128511 O d. 148015 $2828034 During March, the job-cost record for Job X contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Taylor

Name: Creative Solutions uses a job-costing system with two direct-cost cat
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and directmanufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturingoverhead costs using direct manufacturi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please avoid solutions in an image format thanks
Arensky Company uses normal costing to account for overhead in its job costing system. There are departments in the company: Designing and Machining. The Designing Dept. is labor intensive; the Machining Dept. is machine intensive. (OH- Overhead; DLH = Direct Labor Hours; MH = Machining Hours.) The budget for 2019 is as follows: Actual results are as follows: a. b. C. Est. OH Est. DLH Est. MH d. Actual OH Actual DLH Actual MH Designing $2,000,000 40,000 hours 20,000 hours Designing $2,100,000 41,500 hours 19,800 hours Machining $5,600,000 10,000 hours 70,000 hours Machining $5,650,000 11,000 hours 72,000 hours Using the most logical allocation base, calculate the OH Allocation Rate for eac department. Be sure to state your final answer in proper units. For each department, calculate how much OH is allocated. For each department, give the journal entry to record over- or under-allocated overhead. Why is the Normal Costing method preferred to the Actual Costing method? uirements
Please explain the answer
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 86,070 4,530 assembly hours Designing products $ 605,412 3,012 product design hours Setting up batches $ 48,140 830 batch set-ups Required: Compute the activity rates for each of the three cost pools.
Please see picture below.
Tillman Corporation uses a Job Order Costing system and has two production departments--Molding and Assembly. The company applies manufacturing overhead to production orders on the basis of direct labor costs. Separate departmental predetermined overhead rates are used. Budgeted manufacturing costs for the year are as follows: Molding Assembling Direct Materials P700,000 P100,000 Direct Labor 200,000 800,000 Manufacturing Overhead 600,000 400,000 The actual material and labor costs charged to Job 432 were as follows: Direct Materials 25,000 Direct Labor Molding 8,000 Assembling 12,000 20,000 Tillman applies manufacturing overhead to production orders on the basis of direct labor cost using a departmental rate predetermined at the beginning of the year based on the annual budget. The total manufacturing cost associated with Job 432 should be?
Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] 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. Inventories Raw materials Work in process Finished goods Beginning of period $ 43,000 9,200 63,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 57,000 18,600 34,300 $ 183,000 150,000 18,000 34,500 98,500 Exercise 15-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2, P3, P4 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the…
Computing and using activity-based costing overhead allocation rates Koehler (see Exercise E19-15 and Exercise E19-16) makes handheld calculators in two models—basic and professional—and wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $721,000 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Requirement 1 Koehler expects to produce 200,000 basic models and 200,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? Requirement 2 Compare your answers for Exercise E19-15, Exercise E19-16, and Exercise E19-17. What conclusions can you draw? Note: Short Exercise S19-15 and ES19-16 must be completed before attempting Short Exercise 519-17.
For 2020, Roy manufacturing used job costing. The company uses machine-hours as the overhead cost-allocation base. The records show the following information: Estimated Actual Manufacturing overhead costs £800,000 £840,000 Machine-hours 50,000 60,000 The budgeted manufacturing overhead rate for 2020 is ? a. £16 per machine-hour b. £14 per machine-hour c. £16.8 per machine-hour d. £13.3 per machine-hour
Computing departmental overhead allocation rates The Oakman Company (see Short Exercise S19-1) has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing Department, $510,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 170,000. The estimated costs for the Packaging Department, $300,000, will be allocated based on machine-hours, and the estimated machine hours for the year are 40,000. In October, the company incurred 38,000 direct labor hours in the Mixing Department and 10,000 machine hours in the Packaging Department. Requirements Compute the predetermined overhead allocation rates. Round to two decimal places. Determine the total amount of overhead allocated in October.
Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information: Budget for 2017 Actual Results for 2017 Direct material costs $2,250,000 $2,150,000 Direct manufacturing labor costs 1,700,000 1,650,000 Manufacturing overhead costs 3,060,000 3,217,500 Q. Compute the actual and budgeted manufacturing overhead rates for 2017.
Info in images