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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In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $15,300 $14,700 Indirect labor 19,800 20,300 Utilities 10,100 10,900 Supervision 5,800 5,800 All costs are controllable by the department manager.Prepare a responsibility report for April for the cost center. HANNON COMPANYAssembly DepartmentManufacturing Overhead Cost Responsibility ReportFor the Month Ended April 30, 2020 Difference Controllable Cost Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening responsibility report item Indirect MaterialsIndirect LaborSupervisionUtilities $Enter a dollar amount $Enter a dollar amount $Enter the difference Select an option…
The following cost data relates to Job 355C:· Direct materials: P28,400· Indirect Materials: P7,000· Direct labor cost: P9,600· Direct labor hours of 200 hours· Indirect labor cost: P4,500· Other indirect manufacturing costs: P12,000· Manufacturing overhead cost – applied: (160 machine hours @ P25/machine hour, based on budgeted amounts)· Selling and shipping cost: P14,000The Job 355C consists of 2,000 units and has been completed. The company uses normal costing of accounting for overhead. What is the cost per unit of Job 355C?
Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct labor hours are estimated to be 513,000. Required: A. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent. B. During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. C. Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.
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Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Hallett Company estimated the following: Cutting Department Sewing Department Total Overhead $240,000 $350,000 $590,000 Direct labor hours 31,200 99,100 130,300 Machine hours 150,000 — 150,000 Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Cutting Department Sewing Department Total Overhead $20,610 $35,750 $56,360 Direct labor hours 2,800 8,600 11,400 Machine hours 13,640 — 13,640 Required: 1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Cutting department $ per machine hour Sewing department $ per direct labor hour 2. Calculate the overhead…