Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: Information State University On-the-Go Home Precious Pre-school Direct Materials Cost (food) $53,800 $36,000 $79,400 Direct Labor Cost $43,800 $40,500 $56,000 Labor Hours 3,250 3,600 4,050 The company applies overhead at a rate of $20.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $406,400. The allocated overhead for the month was $141,200, of which $126,100 should be credited to accounts payable and $39,200 should be credited to Accumulated Depreciation. 1. Determine the costs that should be assigned to each of the jobs. State University On-the-Go Home Precious Pre-school TOTAL Direct Materials Direct Labor Actual Overhead Total Job Cost Manufacturing Overhead Debit Credit Double line Double line 2. Do the adjustment for overallocated or underallocated manufacturing overhead. Journal Date Description Debit Credit
Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: Information State University On-the-Go Home Precious Pre-school Direct Materials Cost (food) $53,800 $36,000 $79,400 Direct Labor Cost $43,800 $40,500 $56,000 Labor Hours 3,250 3,600 4,050 The company applies overhead at a rate of $20.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $406,400. The allocated overhead for the month was $141,200, of which $126,100 should be credited to accounts payable and $39,200 should be credited to Accumulated Depreciation. 1. Determine the costs that should be assigned to each of the jobs. State University On-the-Go Home Precious Pre-school TOTAL Direct Materials Direct Labor Actual Overhead Total Job Cost Manufacturing Overhead Debit Credit Double line Double line 2. Do the adjustment for overallocated or underallocated manufacturing overhead. Journal Date Description Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows:
overhead at a rate of $20.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $406,400. The allocated overhead for the month was $141,200, of which $126,100 should be credited to accounts payable and $39,200 should be credited to Accumulated Depreciation .
1. Determine the costs that should be assigned to each of the jobs.
Manufacturing Overhead
2. Do the adjustment for overallocated or underallocated manufacturing overhead.
Journal
| Information | State University | On-the-Go Home | Precious Pre-school |
|---|---|---|---|
| Direct Materials Cost (food) | $53,800 | $36,000 | $79,400 |
| Direct Labor Cost | $43,800 | $40,500 | $56,000 |
| Labor Hours | 3,250 | 3,600 | 4,050 |
The company applies
1. Determine the costs that should be assigned to each of the jobs.
| State University | On-the-Go Home | Precious Pre-school | TOTAL | |
|---|---|---|---|---|
| Direct Materials | ||||
| Direct Labor | ||||
| Actual Overhead | ||||
| Total Job Cost |
Manufacturing Overhead
| Debit | Credit |
|---|---|
| Double line | Double line |
2. Do the adjustment for overallocated or underallocated manufacturing overhead.
Journal
| Date | Description | Debit | Credit |
|---|---|---|---|
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