Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process: Budgeted MOH Budgeted production (units) Budgeted direct labor hours Cost Pool Cost Pool 1 Cost Pool 2 Total Total Cost $ 6,000,000 $ 9,000,000 $ 15,000,000 $ 15,000,000 25,000,000 40,000 Allocation Base Unit Direct labor hour Question a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals. b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round your answer to 2 decimals. c1. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 1 for the upcoming year? Note: Round your answer to 2 decimals. c2. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 2 for the upcoming year? Note: Round your answer to 2 decimals. d. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a jobcosting system with the two cost pools listed above, what is the total allocated manufacturing overhead to the job? Note: Round your answer to 2 decimals. Answer per unit per unit per DLH
Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process: Budgeted MOH Budgeted production (units) Budgeted direct labor hours Cost Pool Cost Pool 1 Cost Pool 2 Total Total Cost $ 6,000,000 $ 9,000,000 $ 15,000,000 $ 15,000,000 25,000,000 40,000 Allocation Base Unit Direct labor hour Question a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals. b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round your answer to 2 decimals. c1. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 1 for the upcoming year? Note: Round your answer to 2 decimals. c2. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 2 for the upcoming year? Note: Round your answer to 2 decimals. d. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a jobcosting system with the two cost pools listed above, what is the total allocated manufacturing overhead to the job? Note: Round your answer to 2 decimals. Answer per unit per unit per DLH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the
beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process:
Budgeted MOH
Budgeted production (units)
Budgeted direct labor hours
Cost Pool
Cost Pool 1
Cost Pool 2
Total
Total Cost
$ 6,000,000
$ 9,000,000
$ 15,000,000
$ 15,000,000
25,000,000
40,000
Allocation Base
Unit
Direct labor hour
Question
a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the
predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals.
b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system
with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round
your answer to 2 decimals.
c1. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What
are the predetermined overhead rates for cost pool 1 for the upcoming year? Note: Round your answer to 2
decimals.
c2. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What
are the predetermined overhead rates for cost pool 2 for the upcoming year? Note: Round your answer to 2
decimals.
d. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a jobcosting system with the
two cost pools listed above, what is the total allocated manufacturing overhead to the job? Note: Round your
answer to 2 decimals.
Answer
per unit
per unit
per DLH
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