Reed Corporation has two production departments, Machining andFinishing. The company uses a job-order costing system and computes apredetermined overhead rate in each production department. TheMachining Department's predetermined overhead rate is based onmachine-hours and the Finishing Department's predetermined overheadrate is based on direct labor-hours. At the beginning of the current year,the company had made the following estimates:Machine-hoursDirect labor-hoursTotal fixed manufacturing overhead costVariable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hourDuring the current month the company started and finished Job K368. The following data were recorded for this job:Finishing3040Job K368:Machine-hoursDirect labor-hours$856.00$168.00Machining Finishing18,0002,000$624.00$140,400.00$ 102,600 SS 2.10Machining8020The amount of overhead applied in the Machining Department to JobK368 is closest to: (Round your intermediate calculations to 2 decimalplaces.)S11,0009,00096,3003.90

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Reed Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Job K368: Machine-hours Direct labor-hours Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job K368. The following data were recorded for this job: Machining Finishing 30 40 $856.00 $168.00 Machining Finishing 18,000 2,000 $ 102,600 S S 2.10 S $624.00 The amount of overhead applied in the Machining Department to Job K368 is closest to: (Round your intermediate calculations to 2 decimal places.) $140,400.00 11,000 9,000 96,300 80 20 3.90

Reed Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Job K368: Machine-hours Direct labor-hours Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour During the current month the company started and finished Job K368. The following data were recorded for this job: Machining Finishing 30 40 $856.00 $168.00 Machining Finishing 18,000 2,000 $ 102,600 S S 2.10 S $624.00 The amount of overhead applied in the Machining Department to Job K368 is closest to: (Round your intermediate calculations to 2 decimal places.) $140,400.00 11,000 9,000 96,300 80 20 3.90

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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Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost 20 80 $ 500 $ 2,160 If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to: Note: Round your intermediate calculations to 2 decimal places.
Hanshaben
The Oliver Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $748,000, and estimated direct labor hours are 340,000. In October, the company incurred 30,000 direct labor hours. Read the requirements. Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate. (Abbreviation used; qty = Requirement 2. Determine the amount of overhead allocated in October. Predetermined OH allocation rate Begin by selecting the formula to allocate overhead costs. (Abbreviation used; qty = quantity.) Allocated mfg. = overhead costs The overhead allocated in October is quantity.)
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting 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: Casting Customizing Machine-hours 23,000 15,000 Direct labor-hours 7,000 7,000 Total fixed manufacturing overhead cost $ 82,800 $ 30,100 Variable manufacturing overhead per machine-hour $ 1.40 Variable manufacturing overhead per direct labor-hour $ 4.70 The estimated total manufacturing overhead for the Customizing Department is closest to:
Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows: Actual manufacturing overhead cost $500,000 Estimated manufacturing overhead cost $550,000 Estimated direct labor cost $175,800 Estimated direct labor hours 50,500 Actual direct labor hours 60,700 Estimated machine hours 40,600 Actual machine hours 35,800 By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials Direct labor cost Machine-hours used 151,000 $ 656,000 $ 4.90 $ 320 $ 250 36 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
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Harootunlan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Recently, Job T629 was completed with the following characteristics: Number of units in the job Total machine-hours The amount of overhead applied to Job T629 is closest to: Multiple Choice $1,620 $780 O $1,200 50 200 O $420 80,000 $ 312,000 $ 2.10 K
Orange 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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Milling Customizing 16,000 2,000 118,400 2.10 O $19.00 per machine-hour $2.10 per machine-hour $9.50 per machine-hour O $7.40 per machine-hour $ S The predetermined overhead rate for the Milling Department is closest to: S $ 12,000 8,000 87,200 3.30
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