Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the Saint Cloud plant for the past year are as follows: Mc Graw Hill Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 100,000 $ 282,000 Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 120,000 302,000 38,000 20,000 20,000 47,000 39,000 18,700 20,800 49,000 For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for several jobs. Projected data pertaining only to job number 110 are as follows: Direct materials Direct labor cost: Department A (2,800 hours) Department B (1,500 hours) Machine-hours projected: Department A Department B Units produced $ 25,000 42,000 14,000 170 1,200 9,000 Assume the Saint Cloud plant uses three separate overhead rates to assign overhead costs to jobs. b-1. Find the plant wide overhead rate by using expected machine hours. b-2. Find the department overhead rate using expected machine hours for Department A and Department B. b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed. 9 < Prev 2 3 4 6 of 6 Next > M
Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the Saint Cloud plant for the past year are as follows: Mc Graw Hill Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 100,000 $ 282,000 Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 120,000 302,000 38,000 20,000 20,000 47,000 39,000 18,700 20,800 49,000 For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for several jobs. Projected data pertaining only to job number 110 are as follows: Direct materials Direct labor cost: Department A (2,800 hours) Department B (1,500 hours) Machine-hours projected: Department A Department B Units produced $ 25,000 42,000 14,000 170 1,200 9,000 Assume the Saint Cloud plant uses three separate overhead rates to assign overhead costs to jobs. b-1. Find the plant wide overhead rate by using expected machine hours. b-2. Find the department overhead rate using expected machine hours for Department A and Department B. b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed. 9 < Prev 2 3 4 6 of 6 Next > M
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order
costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs
pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's
overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from
the Saint Cloud plant for the past year are as follows:
Budgeted department overhead
(excludes plantwide overhead)
Actual department overhead
Expected total activity:
Direct labor hours
Machine-hours
Actual activity:
Direct labor hours
Machine-hours
Department A Department B
$ 100,000 $ 282,000
120,000
302,000
38,000
20,000
20,000
47,000
39,000
18,700
20,800
49,000
Mc
Graw
Hill
For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for
several jobs. Projected data pertaining only to job number 110 are as follows:
Direct materials
Direct labor cost:
Department A (2,800 hours)
Department B (1,500 hours)
Machine-hours projected:
Department A
Department B
Units produced
$ 25,000
42,000
14,000
170
1,200
9,000
Assume the Saint Cloud plant uses three separate overhead rates to assign overhead costs to jobs.
b-1. Find the plant wide overhead rate by using expected machine hours.
b-2. Find the department overhead rate using expected machine hours for Department A and Department B.
b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed.
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