Homework Help is Here – Start Your Trial Now!
Business
Accounting
Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31

Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
See similar textbooks
icon
Related questions
Question
Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31
Transcribed Image Text:Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS