Exercise 15-17 (Algo) Overhead rate; costs assigned to jobs LO P3 Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $826,000 of overhead costs and $590,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the Information on the following job cost sheet to determine the total cost of Job 56. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information on the following job cost sheet to determine the total cost of Job 56. Note: Round your answers to the nearest dollar amount. Customer's Name: Keiser Company Job Description: 3 customized systems Direct Materials Date March 08 March 11 March 18 Requisition Number M-129 M-142 M-167 Cost JOB COST SHEET Direct Labor Time-Ticket Number S 4.000 T-300 6,600 T-432 3.300 T-456 Required 1 S Cost Job Number: 56 1,350 1,330 Overhead Applied 680 S 952 1,800 1.802 Required 2 > Total Cost
Exercise 15-17 (Algo) Overhead rate; costs assigned to jobs LO P3 Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $826,000 of overhead costs and $590,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the Information on the following job cost sheet to determine the total cost of Job 56. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information on the following job cost sheet to determine the total cost of Job 56. Note: Round your answers to the nearest dollar amount. Customer's Name: Keiser Company Job Description: 3 customized systems Direct Materials Date March 08 March 11 March 18 Requisition Number M-129 M-142 M-167 Cost JOB COST SHEET Direct Labor Time-Ticket Number S 4.000 T-300 6,600 T-432 3.300 T-456 Required 1 S Cost Job Number: 56 1,350 1,330 Overhead Applied 680 S 952 1,800 1.802 Required 2 > Total Cost
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Exercise 15-17 (Algo) Overhead rate; costs assigned to jobs LO P3
Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $826,00
of overhead costs and $590,000 of direct labor cost for the period. During March, Shire began and completed Job 56.
1. What is the predetermined overhead rate for this period?
2. Use the Information on the following job cost sheet to determine the total cost of Job 56.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
What is the predetermined overhead rate for this period?
Overhead Rate
Numerator:
1
1
Denominator:
< Required 1
Overhead Rate
Overhead rate
Required 2 >
Transcribed Image Text:Exercise 15-17 (Algo) Overhead rate; costs assigned to jobs LO P3
Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $826,000
of overhead costs and $590,000 of direct labor cost for the period. During March, Shire began and completed Job 56.
1. What is the predetermined overhead rate for this period?
2. Use the Information on the following job cost sheet to determine the total cost of Job 56.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Use the information on the following job cost sheet to determine the total cost of Job 56.
Note: Round your answers to the nearest dollar amount.
Customer's Name: Keiser Company
Job Description: 3 customized systems
Direct Materials
Date
March 08
March 11
March 18
Requisition
Number
M-129
M-142
M-107
Cost
JOB COST SHEET
Direct Labor
Time-Ticket
Number
S 4.000 T-300
6,600 T-432
3.300 T-456
< Required 1
S
Cost
Job Number: 56
1,350
1,330
Overhead
Applied
680 S
952
1,800
1.862
Required 2 >
Total Cost
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning