DATA 1: You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. The company does not have indirect materials. You will keep track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The total estimated manufacturing overhead costs per month are $4,800. The company estimates that there will be 120 direct labor hours worked during the month. Q1-What is the predetermined overhead rate (POHR)?

DATA 1: You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. The company does not have indirect materials. You will keep track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The total estimated manufacturing overhead costs per month are $4,800. The company estimates that there will be 120 direct labor hours worked during the month. Q1-What is the predetermined overhead rate (POHR)?

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

Shoostar Ltd is a video tech company that produces videos for companies’ marketing campaigns and video training content. All jobs are tailor-made to the clients’ requirements. The company uses a job costing system, and had 2 jobs in process at the start of the year: Job S1 ($66 000) and Job S3 ($55 000). The following information is available: (i) The company applies manufacturing overhead on the basis of video production hours. Budgeted overhead and video production activity for the year were anticipated to be $800 000 and 40 000 hours, respectively. (ii) The company worked on four jobs during the first quarter (i.e. from 1 July to 30 September). Direct materials used, direct labour incurred and video production hours were as shown in the following table: Job numbers Direct material Direct labour Video production hours S1 $ - $40 000 500 S2 50 500 23 000 1000 S3 - 65 000 1 500 S4 30 000 $40 000 2 000 (iii) Manufacturing…
Please explain the answer
After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey decides to analyze overhead cost at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of the company's overhead. Additional information about overhead follows. Activity Set up Inspection Utilities Total Budgeted Cost $ 24,920 The following data pertain to Job 615. $ 2,500 $ 3,300 $ Direct materials. Direct labor Overhead Setups Parts inspected Machine hours 5,400 10,800 $ 41,120 Setup Inspection Utilities Budgeted Activity Usage 28 setups 5,400 parts inspected 5,400 machine hours (MH) 5 setups 590 parts inspected 610 machine hours. Required: 1. Classify each of the three overhead activities as unit level, batch level, product level, or facility level. 2. Assume Business Solutions allocates overhead cost using a plantwide rate based on 5,400 machine hours. Compute total product cost of Job 615. 3. Assume…
Total manufacturing cost FOR job P with formulas ? tHANKS
You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you have been asked to develop and manufacture two new tables for customers. You will design and build the tables. The company does not have indirect materials. You will keep track of the costs incurred to manufacture the tables using Job #1 Cost Sheet and Job #2 Cost Sheet.The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The total estimated manufacturing overhead costs per month is $6,300. The company estimates that there will be 120 direct labor hours worked during the month.1 - What is the predetermined overhead rate (POHR)?Data 2: The cost of the direct materials that can be used to manufacture the table are as follows. Table Top $2,200Table legs, quantity 4 ($750 per leg)$3,000Drawer$420 Data 3: Assume a $70 per…
I am working on T accounts for the Polaris Company using a job-cost order and I am stuck on this attached problem. Can you show me how to find the missed problems. Thank you.
Transcribed Image Text:A furniture-making business manufactures quality furniture to customers orders. It has three production departments (A, B and C) which have overhead absorption rates (per direct labour hour) of $12.86, $12.40 and $14.03 respectively. Two pieces of furniture are to be manufactured for customers. Direct costs are as follows. Job MNO Direct material Direct labour Job XYZ $154 20 hours dept A 12 hours dept B 10 hours dept C $108 16 hours dept A 10 hours dept B 14 hours dept C Labour rates are as follows: $3.80(A): $3.50 (B); $3.40 (C) Calculate the total cost of cach job the selling price if there is a markup of 25%
Using the current traditional system of allocating overhead costs based on a single rate based on labor hours, determine the gross profit per unit for the brass style of faucet.