Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.Activity RateActivityMaterials handlingQuality inspection$ 61 per materials requisition$ 51 per inspectionUtilities$6 per machine hourDuring January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates.Activity Cost DriverMaterials requisitionsInspectionsMachine hoursActivity UsageJob AQuality inspectionUtilitiesTotal69355Job B45255Allocate overhead based on actual activity usage-Job AActivityActivity UsageMaterials handlingAllocate overhead based on actual activity usage-Job BActivityActivity UsageMaterials handlingQuality inspectionUtilitiesTotalActivity RateActivity RateAllocated CostAllocated Cost

Name: Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity
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Description: Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.Activity RateActivityMaterials handlingQuality inspection$ 61 per

Using activity-based costing, the overhead is applied to the different jobs using the activity…

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Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Rate Activity Materials handling Quality inspection Utilities $61 per materials requisition $ 51 per inspection $6 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates Activity Usage Job A Activity Cost Driver Materials requisitions Inspections Machine hours 6 9 355 Allocate overhead based on actual acti Job B 4 5 255

Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Rate Activity Materials handling Quality inspection Utilities $61 per materials requisition $ 51 per inspection $6 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates Activity Usage Job A Activity Cost Driver Materials requisitions Inspections Machine hours 6 9 355 Allocate overhead based on actual acti Job B 4 5 255

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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redetermined Factory Overhead Rate Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $637,100 Shop direct labor 465,000 Shop and repair equipment depreciation 51,100 Shop supervisor salaries 142,000 Shop property taxes 25,800 Shop supplies 19,800 Advertising expense 12,700 Administrative office salaries 54,800 Administrative office depreciation expense 7,000 Total costs and expenses $1,415,300 The average shop direct labor rate is $15 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$ per direct labor hour
Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO 2-2, LO2-3, LO2-4] Skip to question [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 53,000 machine - hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine - hours. The company gathered the following information to enable calculating departmental overhead rates: Molding Fabrication Total Machine - hours 23,000 30,000 53,000 Fixed manufacturing…
QUESTION THREE Hamad Woodworking uses normal costing and allocates manufacturing overhead to jobs based on direct labor hours. During 2014, Hamad recorded the following data: Budget manufacturing overhead costs Budgeted direct labour hours Actual manufacturing overhead costs Actual direct labour hours The following additional data were provided for Job 101: Direct materials $80,000 Direct labour 100,000 Direct labour hours 150 Machine hours 200 Required: 1. Compute the cost of Job 101 using normal costing. 2. Compute the overhead under or overallocated. 3. Explain the characteristics of a job costing system. $4,400,000 200,000 4,650,000 212,000
Predetermined Factory Overhead Rate Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $949,400 Shop direct labor 693,000 Shop and repair equipment depreciation 59,300 Shop supervisor salaries 164,900 Shop property taxes 29,900 Shop supplies 23,100 Advertising expense 19,000 Administrative office salaries 81,600 Administrative office depreciation expense 10,400 Total costs and expenses $2,030,600 The average shop direct labor rate is $21 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. per direct labor hour
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Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3 Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Activity Rate Materials handling $ 54 per materials requisition Quality inspection $ 44 per inspection Utilities $ 5 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Cost Driver Activity Usage Job A Job B Materials requisitions 5 3 Inspections 8 4 Machine hours 320 220
Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Job 301 Work in Process Job 302 17 13 13 Factory Overhead Wages Payable Landon Vincent Fahad Hamad Ivory Argo The direct labor rate earned per hour by the three employees is as follows: $24 19 22 10 18 Hours 17 Job 303 7 16 Process Improvement 9 5 2 Landon Vincent Fahad Hamad Ivory Argo The process improvement category includes training, quality improvement, and other indirect tasks. 5 a. Journalize the entry to record the factory labor costs for the week. If an amount box does not require an entry, leave it blank.
Problem 18: Predetermined Factory Overhead believes that the company would be better if it will use two factory overhead single factory overhead rate that is based on machine hours. Its manager Davao Corp. uses job order costing system to produce its products. It uses a rates, one based on material costs and the other one is based machine hours. The following data are for year 2020: Materials related Factory overhead Machine related Factory overhead Total Budgeted Factory overhead Costs of materials used on jobs Total Machine hours Data related to three jobs worked on in December follow: Material Costs Direct Labor Costs Machine Hours used Job # 1 168,000 128,000 68,000 Budgeted FOH 3,840,000 10,400,000 14,240,000 Job # 2 656,000 104,000 36,000 Job Order Costing 12,800,000 1,600,000 Job # 3 312,000 144,000 23,200 Actual factory overhead related to materials was P318,400 and actual factory overhead related to machine hours was P846,400. Required: 1. Determine the predetermine factory…
Question 1 Far West Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct material cost. Its predetermined overhead rate was based on a cost formula that estimated $500,000 of manufacturing overhead for an estimated allocation base of $390,625 direct material dollars. The company has provided the following data in the form of an Excel worksheet: Ending $55,000 166,125 138,000 The following actual costs were incurred during the year: $450,000 $119,000 Beginning $38,000 79,000 47,000 Raw Materials Work in Process Finished Goods Purchase of raw materials Direct labor cost Manufacturing overhead costs: Indirect materials 104,875 102,000 35,000 32,700 41,000 23,425 49,000 Insurance, factory Depreciation of equipment Indirect labor Property taxes Maintenance Rent, building Required: Compute the predetermined overhead rate for the year. Prepare a schedule of cost of goods manufactured for the year. Compute the amount of underapplied…