Job order costing; rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of $3,126,200 and 319,000, respectively, were used in developing the predetermined rate for the year. During the year, the company worked on Job # 876 and incurred the following costs and machine hours: Direct material $104,500 Direct labor $47,960 Machine hours 715
Job order costing; rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of $3,126,200 and 319,000, respectively, were used in developing the predetermined rate for the year. During the year, the company worked on Job # 876 and incurred the following costs and machine hours: Direct material $104,500 Direct labor $47,960 Machine hours 715
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Job order costing; rework
Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on
machine hours. Expected overhead and machine hours of $3,126,200 and 319,000, respectively, were used in developing the predetermined rate for the year.
During the year, the company worked on Job #876 and incurred the following costs and machine hours:
Direct material
Direct labor
Machine hours
$104,500
$47,960
715
Transcribed Image Text:a.
1. What is the total cost of Job #876? $ 0
2. What is the cost per unit if 3,300 were made?
Note: Round your answer to two decimal places.
$0
X
X
b. In completing Job #876, 66 units were defective and had to be reworked at a cost of $25 each. Assume that spoilage and rework costs were included in the original
estimated overhead costs. Where does the $1,650 rework cost appear in the accounts of Canyon City Co.?
Manufacturing Overhead Control
c. Disregard the facts in (b). Upon completing Job #876, the quality control inspector determined that 66 units were spoiled and would be unacceptable to the
customer. Sixty-six additional good units were made at a total cost of $3,058. The spoiled units were sold for $528 as "seconds" to an outlet store. What is the total
cost of Job #876?
$0
X
Expert Solution
Step 1
Job Order System is a type of software or system used to manage and track the progress of a company’s projects, tasks, and jobs. This system typically includes features such as job scheduling, job tracking, job costing, and client invoicing. It also allows teams to understand the status of all jobs, assign resources, and prioritize work. This system helps to improve efficiency, reduce costs, and improve customer satisfaction.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education