Ee 438. tHahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocationbase. The company pays its direct laborers $21.00 per hour. During the year, the company started and completed only two jobs-JobAlpha, which used 69,500 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below.0ancesJob AlphaDirect materialsDirect laborManufacturing overhead appliedTotal job costJob OmegaDirect materialsDirect laborManufacturing overhead appliedTotal job cost77$ 2,926,000$ 483,400627,900418,600$ 1,529,900Required:1. Calculate the plantwide predetermined overhead rate.2. Complete the job cost sheet for Job Alpha.$Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete the job cost sheet for Job Alpha. (Round your intermediate calculations to 2 decimal places.)Direct materialsDirect laborManufacturing overhead appliedTotal job cost0 1Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocationbase. The company pays its direct laborers $21.00 per hour. During the year, the company started and completed only two jobs-JobAlpha, which used 69,500 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below:0ancesJob AlphaDirect materials.Direct laborManufacturing overhead appliedTotal job costJob OmegaDirect materialsDirect laborManufacturing overhead applied.Total job cost72,926,000$ 483,400627,900418,600$ 1,529,900Required:1. Calculate the plantwide predetermined overhead rate.2. Complete the job cost sheet for Job Alpha.Complete this question by entering your answers in the tabs below.Required 1 Required 2Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)Pardwide predetermined overhead rateper DLHRequired 1Required 2 >

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Description: Ee 438. tHahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocationbase. The company pays its direct laborers $21.00 per hour. During the year, the company started and completed o

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Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $21.00 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 69,500 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below. Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost Job Omega Direct materiale Direct labor Manufacturing overhead applied Total job cost Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha. 2,926,000 Complete this question by entering your answers in the tabs below. Direct materials Direct labor $ 483,400 627,900 418,600 $ 1,529,900 Required 1 Required 2 Complete the job cost sheet for Job Alpha. (Round your intermediate calculations to 2 decimal places.) Manufacturing overhead applied Total job cost $

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $21.00 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 69,500 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below. Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost Job Omega Direct materiale Direct labor Manufacturing overhead applied Total job cost Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha. 2,926,000 Complete this question by entering your answers in the tabs below. Direct materials Direct labor $ 483,400 627,900 418,600 $ 1,529,900 Required 1 Required 2 Complete the job cost sheet for Job Alpha. (Round your intermediate calculations to 2 decimal places.) Manufacturing overhead applied Total job cost $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

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Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
Compute the total job cost for each of the following scenarios: a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled 5,000 and that the direct labor cost totaled 3,200. b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is 10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, and the number of direct labor hours totaled 250. c. If the machine hour method is used in applying factory overhead and the predetermined rate is 12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, the direct labor hours were 250 hours, and the machine hours were 295 hours.
Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?
Exotic 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: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.
Lucy Sportswear manufactures a specialty line of T-shirts using a job order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials, 13,700; direct labor, 4,800; administrative, 1,400; and selling, 5,600. Factory overhead was applied at the rate of 25 per machine hour, and Job ICU2 required 800 machine hours. If Job ICU2 resulted in 7,000 good shirts, the cost of goods sold per unit would be: a. 5.70. b. 6.50. c. 5.50. d. 6.30.
Determining job costcalculation of predetermined rate for applying overhead by direct labor cost and direct labor hour methods Beemer Products Inc. has its factory divided into three departments, with individual factory overhead rates for each department. In each department, all the operations are sufficiently alike for the department to be regarded as a cost center. The estimated monthly factory overhead for the departments is as follows: Forming, 64,000; Shaping, 36,000; and Finishing, 10,080. The estimated production data include the following: The job cost ledger shows the following data for X6, which was completed during the month: Required: Determine the cost of X6. Assume that the factory overhead is applied to production orders, based on the following: 1. Direct labor cost 2. Direct labor hours (Hint: You must first determine overhead rates for each department, rounding rates to the nearest cent.)
Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at $1.25 for each direct labor dollar spent. What is the total cost for each of the jobs?
Nutts management is very concerned about the cost of overhead on its jobs. When jobs are complete, overhead costs should be between 15% and 20% of total costs. For example, the labor cost on Job 8958 is 25% of total costs, higher than the norm. Open Job 8961 and click the Chart sheet tab. A pie chart appears showing the cost components on that job. Record the labor cost percentage in the space provided. Repeat this for each of the jobs worked on in August. Did Nutt maintain good cost control on all its jobs? Explain. Worksheet. During September, Job 8963 required two additional material requisitions to complete the job. Open JOB8963 and modify the job cost sheet to include an area for four direct material requisition entries instead of three. Then enter the following two materials requisitions onto the worksheet: Preview the printout to make sure it will print neatly on one page, and then print the worksheet. Save the completed worksheet as JOBT. Chart. Open JOB8964 and click the Chart sheet tab. Prepare a bar chart for JOB8964 showing the amount of material, labor, and overhead required to complete the job. Use the Chart Data Table found in rows 4246 as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as J0B8964. Print the chart.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?