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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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?
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if job 10 consists of 50 units of product, what is the unit cost of this job?
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