Problem 2-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4] High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor hours. At the beginning of the year, the company provided the following estimates Direct labor hours Machine hours Fixed manufacturing overhead cost Variable manufacturing overhead per nachine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Department Holding 90 300 $934 $740 Painting 131 70 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: $1,220 $980 Department Molding 10,500 86,000 $249,400 $ 2.00 0 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 32 units, what would be the unit product cost? Painting $2,100 34,000 $ 453,270 $4.00 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2 Compute the total overhead cost applied to Job 205.
Problem 2-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4] High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor hours. At the beginning of the year, the company provided the following estimates Direct labor hours Machine hours Fixed manufacturing overhead cost Variable manufacturing overhead per nachine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Department Holding 90 300 $934 $740 Painting 131 70 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: $1,220 $980 Department Molding 10,500 86,000 $249,400 $ 2.00 0 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 32 units, what would be the unit product cost? Painting $2,100 34,000 $ 453,270 $4.00 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2 Compute the total overhead cost applied to Job 205.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
Transcribed Image Text:Problem 2-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4)
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in
which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined
overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor
hours. At the beginning of the year, the company provided the following estimates
Direct labor hours
Machine-hours
Fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor hour
Direct labor-hours
Machine hours
Direct materials
Direct labor cost
Department
Holding
90
380
$.934
$740
Painting
131
70
Department
Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning
the job:
$1,220
$ 980
Polding
10,500
86,000
$ 249,400
$ 2.00
0
Painting
52,100
34,000
$ 453,270
$4.00
Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department
2. Compute the total overhead cost applied to Job 205.
3-a. What would be the total manufacturing cost recorded for Job 205?
3-b. If the job contained 32 units, what would be the unit product cost?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education