Kalp Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes apredetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hoursand the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company hadmade the following estimates:Machine-hoursDirect labor-hoursTotal fixed manufacturing overhead costVariable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hourMachining19,0002,000$ 136,800$ 1.80Finishing12,0008,000$ 69,600$ 3.20During the current month the company started and finished Job K928. The following data were recorded for this job:Job K928:Machine-hoursDirect labor-hoursDirect materialsDirect labor costMachining9030$ 775Finishing1050$ 415$ 630$ 1,050The total amount of overhead applied in both departments to Job K928 is closest to: (Round your intermediate calculations to 2 decimal places.)

Step 1:The first step is to Calculate the predetermined overhead rate: Predetermined overhead rate…

Answered: Kalp Corporation has two production…

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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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.)
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Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company ba predetermined overhead rate for the current year on the following data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job P513 was completed with the following characteristics: Number of units in the job i Total direct labor-hours Direct materials Direct labor cost The total job cost for Job P513 is closest to: $1,400 O $690 $900 O $1,210 10 20 50,000 $ 285,000 $ 3.80 $710 $ 500
Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II. (b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours). (c) Project II was sold during the period for $120,000. The ending balance in Work in Process was: Multiple Choice X $34,000. $0. $46,800. $136,000.
XYZ Company has two production departments, Machining and Customizing. The company uses job - order costing system and computes a predetermined overhead rate (POHR) in eld department. The Machining Department's POHR is based on machine hours (Mhes) and the Customizing Department's POHR is based on direct labor - hours (DLH). At the beginning of the current year the company estimated the following yearly Mhrs and DLH to be used in each department 20,000 Mhrs and 15,000 DLH in the Marching Department 10,000 Mhes and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department OMR150,000 in the Machining Department and OMR100.000 in the Customizing Department. During the year Job XY incurred the following number of hours in each department 50 Mhrs and 30 DLH in the Machining Department and 80 Mhrs and 50 DUA Customizing Department What is the total amount of manufacturing overhead that should? be applied to lob…
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost Direct labor-hours Machine-hours $ 216 $ 327 15 5 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume…
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Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 16,000 11,000 Direct labor-hours 18,000 6,000 Total fixed manufacturing overhead cost $ 92,800 $ 28,800 Variable manufacturing overhead per machine-hour $ 1.20 Variable manufacturing overhead per direct labor-hour $ 5.00 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 50 40 Direct labor-hours 60 30 Direct materials $ 430 $ 180 Direct labor cost $ 800 $ 540…
Purple Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Cutting Department Finishing Department Direct labor-hours 25,000 10,000 30,000 $250,000 $2.00 Machine-hours 4,000 $300,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $4.00 A) Compute the predetermine overhead rate for each department. B) The job cost sheet for Job 203, which was started and completed during the year, showed the following: Cutting Department Finishing Department Direct labor-hours 25 Machine-hours 100 $600 $105 $300 $350 Direct materials Direct labor cost Using the predetermined overhead rate that you computed in…
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Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job P951 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost Multiple Choice The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.) $10,780 20 100 $ 880 $ 9,900 $11,530 99,000 $ 544,500 $ 2.00
Dehner Corporation uses a job - order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following estimates: Total estimated direct labor - hours 44,000 Total estimated fixed manufacturing overhead cost $ 224,400 Estimated Variable manufacturing overhead per direct labor - hour $5.00 Recently, Job P951 was completed with the following characteristics: Total direct labor - hours 100 Direct materials $ 750 Direct labor cost $4,400 The total job cost for Job P951 is Question 10 options: $6, 160 $1,760 $5,150 $ 5, 410

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