Required: 1. Compute the budgeted manufacturing overhead rate for each department 2. During February, the job cost record for job 494 contained the following: Machining department shs 45,000 shs. 14,000 1,000 2,000 Compute the total manufacturing overhead costs allocated to job 494 3. At the end of 2007, the actual manufacturing overhead costs were shs. 2,100,000 in Machining and shs. 3,700,000 in Assembly. Assume that 55,000 actual machine hours were used in Machining and that actual direct manufacturing labor costs in Assembly were shs. 2,200,000. Compute the over or under allocated manufacturing overhead for each department. Cost and Management Accounting 1 Direct materials used Direct manufacturing labor costs Direct manufacturing labor hours Machine hours Assembly department shs. 70,000 shs. 15,000 1,500 1,000 Page 81

Required: 1. Compute the budgeted manufacturing overhead rate for each department 2. During February, the job cost record for job 494 contained the following: Machining department shs 45,000 shs. 14,000 1,000 2,000 Compute the total manufacturing overhead costs allocated to job 494 3. At the end of 2007, the actual manufacturing overhead costs were shs. 2,100,000 in Machining and shs. 3,700,000 in Assembly. Assume that 55,000 actual machine hours were used in Machining and that actual direct manufacturing labor costs in Assembly were shs. 2,200,000. Compute the over or under allocated manufacturing overhead for each department. Cost and Management Accounting 1 Direct materials used Direct manufacturing labor costs Direct manufacturing labor hours Machine hours Assembly department shs. 70,000 shs. 15,000 1,500 1,000 Page 81

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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ABC Company listed the following data for the current year: Budgeted factory overhead $1,134,000 Budgeted direct labor hours 70,000 Budgeted machine hours 25,000 Actual factory overhead 1,100,900 Actual labor hours 71,100 Actual machine hours 24,000 If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is:
immy Author Company has the following data for the past year: Actual overhead $512,000 Applied overhead: Work-in-process inventory $125,000 Finished goods inventory 170,000 Cost of goods sold 150,000 Total $445,000 Calculate the overhead variance for the year and close it to cost of goods sold. Provide all the details and working outs.
A company allocates $7.50 of overhead per direct labor hour to products. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor hours does the company expect in department 2? Budgeted: Department 1 Department 2 Manufacturing overhead costs $ 74,358 $ 49,572 Direct labor hours 6,610 DLH ? DLH Machine hours 700 MH 800 MH
Mountain tops applies overhead on the basis of direct labor hours and reports the following information: Budget Actual Overhead $450,000 $452, 000 Direct Labor Hours 75,000 77,000 Direct Materials $195,000 Direct Labor 333,000 A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over applied, or under applied and by how much?
Computing departmental overhead allocation rates The Oakman Company (see Short Exercise S19-1) has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing Department, $510,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 170,000. The estimated costs for the Packaging Department, $300,000, will be allocated based on machine-hours, and the estimated machine hours for the year are 40,000. In October, the company incurred 38,000 direct labor hours in the Mixing Department and 10,000 machine hours in the Packaging Department. Requirements Compute the predetermined overhead allocation rates. Round to two decimal places. Determine the total amount of overhead allocated in October.
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Testing Department Department Total Overhead $645,000 $741,750 $1,386,750 Direct labor hours 127,000 121,920 248,920 Machine hours 101,000 109,080 210,080 Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows: Assembly Testing Department Department Total Overhead $77,400 $89,010 $166,410 Direct labor hours 15,240 14,630 29,870 Machine hours 12,120 13,090 25,210 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate per direct labor hour Testing department overhead rate per machine hour 2. Calculate the overhead applied to…
if job 10 consists of 50 units of product, what is the unit cost of this job?
Direct labor hours are estimated as 1,900 in Quarter 1; 2,000 in Quarter 2; 1,800 in Quarter 3; and 2,200 in Quarter 4. Indirect material per hour $1.00 Supervisory salaries $16,000 Indirect labor per hour 1.25 Maintenance Salaries 4,000 Maintenance per hour 0.25 Property taxes and insurance 6,000 Utilities per hour 0.50 Depreciation 3,500 Prepare a manufacturing overhead budget using the above overhead information. Manufacturing Overhead Budget For the Year Ending Dec. 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Variable Costs Total Variable Manufacturing Costs $ Fixed Costs Total Fixed Manufacturing Costs Total Manufacturing Overhead