Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates: attached in ss belowhanks Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocateits manufacturing overhead to jobs. The company's two production departments have the followingdepartmental overhead rates:(Click the icon to view the overhead rates.)C=Job 242 used the following direct labor hours and machine hours in the twomanufacturing departments:(Click the icon to view the resources used for Job 242.)Read the requirements1. How much manufacturing overhead should be allocated to Job 242?Calculate the total manufacturing overhead for the job by using a formula for each department's overhead amount and then adding both amounts together. First determine the formula and overhead for theCutting Department.Cutting Department overhead ←Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocateits manufacturing overhead to jobs. The company's two production departments have the followingdepartmental overhead rates:(Click the icon to view the overhead rates.)Data tableCutting Department:$10 per machine hourFinishing Department: $18 per direct labor hourPrintDone- XData tableJOB 242Direct Labor Hours......Machine Hours .........PrintJob 242 used the following direct labor hours and machine hours in the twomanufacturing departments:(Click the icon to view the resources used for Job 242.)Read the requirements.- XFinishingCuttingDepartment Department3781DoneRequirements1. How much manufacturing overhead should be allocated to Job 242?2. Assume that direct labor is paid at a rate of $26 per hour and Job 242 used$2,350 of direct materials. What was the total manufacturing cost of Job 242?PrintDone

Activity rate is used to allocate overhead to respective production. Activity based costing use…

← Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates: (Click the icon to view the overhead rates.) Data table Cutting Department: $10 per machine hour Finishing Department: $18 per direct labor hour Print Done - X Data table JOB 242 Direct Labor Hours...... Machine Hours ......... Print Job 242 used the following direct labor hours and machine hours in the two manufacturing departments: (Click the icon to view the resources used for Job 242.) Read the requirements. - X Finishing Cutting Department Department 3 7 8 1 Done Requirements 1. How much manufacturing overhead should be allocated to Job 242? 2. Assume that direct labor is paid at a rate of $26 per hour and Job 242 used $2,350 of direct materials. What was the total manufacturing cost of Job 242? Print Done

← Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates: (Click the icon to view the overhead rates.) Data table Cutting Department: $10 per machine hour Finishing Department: $18 per direct labor hour Print Done - X Data table JOB 242 Direct Labor Hours...... Machine Hours ......... Print Job 242 used the following direct labor hours and machine hours in the two manufacturing departments: (Click the icon to view the resources used for Job 242.) Read the requirements. - X Finishing Cutting Department Department 3 7 8 1 Done Requirements 1. How much manufacturing overhead should be allocated to Job 242? 2. Assume that direct labor is paid at a rate of $26 per hour and Job 242 used $2,350 of direct materials. What was the total manufacturing cost of Job 242? Print Done

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: John Doe Company uses process costing. The goods are processed first in department A and then passed…

A: The departmental transfer of work in process (WIP) refers to the movement of partially completed…

Q: The costs of direct materials, direct labor, and overhead of completed products ready for sale are…

A: Cost of goods sold (COGS) refers to the cost of goods and services which is sold by the company in…

Q: Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have…

A: Using activity-based costing, the overhead is applied using different activity rates. The activity…

Q: O Manufacturing Overhead. O Cost of Goods Sold. O Work in Process Inventory-Packaging Department. O…

A: Production cost refers to cost incurred in factory for the production of goods and hence includes…

Q: Compute the total amount of indirect labor allocated to Dept. 2 using activity-based costing.

A: Activity based segregations of costs is done by the company when the costs are expenses together by…

Q: How to determine the per-unit factory overhead allocated to the commercial and residential motors…

A: Single plantwide factory overhead rate is the computation of one single overhead rate for the entire…

Q: Manufacturing overhead costs include O direct materials, sales commissions, and factory assembly…

A: Lets understand the basics.Manufacturing overhead is all indirect cost incurred for producing goods.…

Q: Identify which of the following option is correct for the process costing system. Process cost…

A: A process costing system is a method of assigning production costs to mass-produced goods. Each unit…

Q: The Vlad Corporation manufactures street signs; the cost of wages for the factory manager would be…

A: Overhead refers to the ongoing operational expenses that a business incurs as part of its normal…

Q: Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.…

A: Formula: Total cost = Direct materials + Direct labor + Manufacturing overhead.

Q: What is the cost of beginning work in process inventory plus the cost added during the period for…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: Dartmouth Company has two process departments, machining and assembly, which produce products. At…

A: Overhead means the cost incurred in manufacturing the product indirectly like foreman salary ,…

Q: Equivalent Units of Production and Related Costs The charges to Work in Process—Assembly Department…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Dartmouth Company has two process departments, machining and assembly, which produce products. At…

A: Overhead means the cost incurred in manufacturing the product indirectly like foreman salary ,…

Q: Multiple or departmental overhead rates are considered preferable to a single plantwide overhead…

A: The objective of the question is to identify the scenario in which multiple or departmental overhead…

Q: Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.…

A: Given, Assembly Department Sanding Department Manufacturing Overhead rate $50 per machine…

Q: Compute the total amount of indirect labor allocated to Dept. 1 using activity-based costing.

A: Particulars Dept. 1 Dept. 2 Total Direct Labor Hours 888 2072 2960 Indirect Labor $16700 x 888 /…

Q: Mahon Corporation has two production departments, Casting and Customizing. The company uses a…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: Johnston Corp. manufactures computer desks in its Buffalo, New York, plant. The company uses…

A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…

Q: Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs…

A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…

Q: ateness of the company's cost drivers

A: Deparmental overhead rate is the rate for each individual department in a manufacturing process. It…

Q: General factory Machine hours logged Based on the above descriptions, which of the following…

A: Manufacturer manufacture products with the use of machines, use labor, and incurred costs such as…

Q: Which of the following are actual factory overhead allocation methods? a. factory costing, single…

A: A. Factory Costing is a method to allocated costs of overheads not specifically but rather as a…

Q: Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs.…

A: Manufacturing overhead is the amount of cost incurred on the production of the goods. It include the…

Q: The following is taken from Clausen Company’s internal records of its factory with two operating…

A: The overhead cost can be estimated using traditional costing or activity based costing. Using…

Q: Name two principal types of cost accounting systems. Which system provides for a separate record of…

A: Answer: The two principal types of cost accounting systems: 1. Job Order costing system This is the…

Q: Muskoge Company uses a process-costing system. The companymanufactures a product that is processed…

A: 1) a) Physical flow of goods using weighted average method of Modeling department as follows:

Q: Nobel Ltd adopts process costing rather than job costing. Which of the following statement could…

A: Process Costing: Method of estimating costs in which units are continually mass-produced by one or…

Q: Muskoge Company uses a process-costing system. The company manufactures a product that is processed…

A: Note: As per our guidelines, we will solve the first three subparts for you. 3. a. Assembly…

Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Quality Furniture

uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates:

attached in ss below

hanks

Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate
its manufacturing overhead to jobs. The company's two production departments have the following
departmental overhead rates:
(Click the icon to view the overhead rates.)
C
=
Job 242 used the following direct labor hours and machine hours in the two
manufacturing departments:
(Click the icon to view the resources used for Job 242.)
Read the requirements
1. How much manufacturing overhead should be allocated to Job 242?
Calculate the total manufacturing overhead for the job by using a formula for each department's overhead amount and then adding both amounts together. First determine the formula and overhead for the
Cutting Department.
Cutting Department overhead

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Activity rate

VIEW

Step 2: Manufacturing overhead cost

VIEW

Step 3: Total manufacturing cost

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data appear below: Product MO Product M5 Total $ 3,800 $ 23,800 $ 10,400 MHs (Processing) 9,700 300 10,000 Sales (total) Direct materials (total) Direct labor (total) Batches (Supervising) 500 500 1,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Mº $ 74,100 $ 28,500 $ 27,800 Product M5 $ 89,900 $ 31,400 $ 41,700
The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of rent and utilities allocated to Dept. 2 using activity-based costing. Direct LaborHours MachineHours Operating Dept. 1 864 9,300 Operating Dept. 2 2,016 6,200 Totals 2,880 15,500 Factory overhead costs Rent and utilities $ 20,700 Indirect labor 16,300 Depreciation – Equipment 13,000 Total factory overhead $ 50,000
Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: $765,000 315,000 $1,080,000 Fabrication Department factory overhead Assembly Department factory overhead Total Direct labor hours were estimated as follows: Fabrication Department Assembly Department Total In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments…
Asap Which of the following is not a factory overhead allocation method? a.activity-based costingb.factory costingc.single plantwide rated.multiple production department rates
Assigning indirect costs to departments is completed by ________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory In a process costing system, which account shows the overhead assigned to the department? cost of goods sold • finished goods inventory raw material inventory work in process inventory A print shop produces custom paintings. It has received four different orders (a/B/C/D) The total cost for the four orders is labor $6000, materials $10,000 and overheads for 5,000. What processes/systems would you implement if you wanted to know the cost for each of the orders which are not similar.
I post agin this question ....
Why would a manufactury company with multiple production department still prefrer to use a single plantwide overhead rate
McDuff Company uses a job-order costing system to compute product costs. There are two producing departments (P1 and P2) and two support departments (S1 and S2). The costs incurred in S1 and S2 are allocated to Departments A and B and included in their factory overhead rates for costing products. S1 costs are allocated based on the number of employees, S2 costs are allocated based on direct labor hours, and the production departmental overhead rates are also based on direct labor hours. The following data are available for a recent period: S1 S2 P1 P2 Direct department costs $12,000 $18,000 $70,000 $117,500 Number of employees 8 12 48 72 Direct labor hours 450 325 2,250 1,800 Required: Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. The department with the greatest percentage of interdepartmental services should be allocated first.…
Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department.
The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 2 using activity-based costing. Direct Labor Hours Machine Hours Operating Dept. 1 1,020 9,600 Operating Dept. 2 2,380 6,400 Totals 3,400 16,000 Factory overhead costs Rent and utilities $ 22,900 Indirect labor 18,500 Depreciation - Equipment 15,600 Total factory overhead $ 57,000