II. The Auto Care Body Shop uses a job order cost system to determine the cost of performing automotive body and repair work. Estimated costs and expenses for the coming period are as follows: Auto parts $ 520,000 Advertising expense 15,200 Shop direct labor 384,000 Shop and repair equipment depreciation 14,800 Administrative office salaries 54,800 Shop supervisor salaries 82,400 Shop property tax 23,200 Administrative office depreciation 10,000 Shop supplies 12,400 Total costs and expenses $1,116,800 The average shop direct labor rate is $12 per hour. Required: Determine the predetermined shop overhead rate per direct labor hour

II. The Auto Care Body Shop uses a job order cost system to determine the cost of performing automotive body and repair work. Estimated costs and expenses for the coming period are as follows: Auto parts $ 520,000 Advertising expense 15,200 Shop direct labor 384,000 Shop and repair equipment depreciation 14,800 Administrative office salaries 54,800 Shop supervisor salaries 82,400 Shop property tax 23,200 Administrative office depreciation 10,000 Shop supplies 12,400 Total costs and expenses $1,116,800 The average shop direct labor rate is $12 per hour. Required: Determine the predetermined shop overhead rate per direct labor hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Predetermined Factory Overhead Rate Spring Street 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 $753,500 Shop direct labor 550,000 Shop and repair equipment depreciation 31,000 Shop supervisor salaries 86,300 Shop property tax 15,700 Shop supplies 12,000 Advertising expense 15,100 Administrative office salaries 64,800 Administrative office depreciation expense 8,300 Total costs and expenses $1,536,700 The average shop direct labor rate is $22 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$fill in the blank 1 per direct labor hour
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The Cleantok Cleaning Brigade Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Total Activity Cleaning P185,752 21,700 hours Job support 171,532 6,100 jobs Client support 15,124 760 clients Other 240,000 Not applicable Total P612,408 The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One particular client, the Whiddon family, requested 15 jobs during the year that required a total of 60 hours of housecleaning. For this service, the client was charged P1,170. Required: Using the activity-based costing system, compute the customer margin for the Whiddon family. Round off all calculations to the nearest whole cent.
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Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $ 9,800 Depreciation on factory equipment 16,700. Factory supervisor salary Sales commissions Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight-in (on raw materials) Costs of delivery to customers Wages paid to assembly-line workers Lumber used to build product 50,200 23,400 3,800 21,400 115,600 10,900 3,200 9,200 A. $261,800. OB. $131,700. OC. $236,600. D. $325,100. 115,100 82,100 54,100 26,900 Utilities in factory Utilities in sales office Manufacturing overhead costs for Custom Creations Furniture Company totaled
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I need ALL parts of this question answered Gilkison Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below: Gilkison Corporation Balance Sheet October 1 Assets: Cash $ 10,350 Raw materials $ 3,350 Work in process 15,350 Finished goods 19,350 38,050 Property, plant, and equipment (net) 229,350 Total assets $277,750 Liabilities and Stockholders’ Equity: Accounts payable $ 15,175 Retained earnings 262,575 Total liabilities and stockholders’ equity $277,750 Summaries of the transactions completed during October appear below: (1) Raw materials purchased on account $ 66,350 (2) Raw materials used in production (direct materials) $ 50,350 (3) Raw materials used in production (indirect materials) $ 7,175 (4) Direct labor paid in cash $…
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