Departmental Overhead Information Department Overhead Costs Direct Labor Hours Machine Hours Molding Dept. $80,000 6,000 Finishing Dept. $120,000 4,000 Total $200,000 10,000 3,000 7,000 10,000 Job 205 Production Details Department Prime Costs Direct Labor Hours Machine Hours Units Produced Molding Dept. $12,000 1,500 15 600 Finishing Dept. $0 250 5 600 Total $12,000 1,750 20 600

Departmental Overhead Information Department Overhead Costs Direct Labor Hours Machine Hours Molding Dept. $80,000 6,000 Finishing Dept. $120,000 4,000 Total $200,000 10,000 3,000 7,000 10,000 Job 205 Production Details Department Prime Costs Direct Labor Hours Machine Hours Units Produced Molding Dept. $12,000 1,500 15 600 Finishing Dept. $0 250 5 600 Total $12,000 1,750 20 600

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8P: Journalizing the distribution of service department costs to production departments Required: Using...

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Transitioning to a multiple department rate system for allocating overhead
Total Manufacturing Overhead Prime Conversion Cost Direct Materials Direct Labor Manufacturing Cost Case Cost A $ 2,120 $ 1,130 $ 3,670 6,990 11,660 2,100 6,770 8,020 1,420 3,090 9,440 1,980 3,010 5,930 E 11,610 20,630 3,470
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Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 65.70 $ 19.10 1.4 DLHS 34,000 units Pathbreaker $ 51.90 $ 13.90 1 DLHS 84,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $2,750,440 131,600 DLHS Required: 1-a. Compute the predetermined overhead rate bašed on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that…
Answer with all workings for all with steps explanation calculation formula answer in text
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