Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $135,000 Estimated direct labor cost for the year (@ $9/hr.) 108,000 Actual manufacturing overhead cost for January 8,000 Actual direct labor cost for January (1,200 hours) 5,500 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. Answer% b. Prepare a journal entry that applies consulting overhead for January. General Journal Description Debit Credit Answer Answer Answer Answer Answer Answer c. By what amount is consulting overhead over- or underapplied in January? Consulting overhead was Answer by $Answer in January.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Calculate and Use
Selected data for the consulting department of Austin Consulting, Inc., follow:
| Estimated consulting overhead cost for the year | $135,000 |
| Estimated direct labor cost for the year (@ $9/hr.) | 108,000 |
| Actual manufacturing overhead cost for January | 8,000 |
| Actual direct labor cost for January (1,200 hours) | 5,500 |
Assuming that direct labor cost is the basis for applying consulting overhead,
a. Calculate the predetermined overhead rate.
Answer%
b. Prepare a
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| Answer | Answer | Answer |
| Answer | Answer | Answer |
c. By what amount is consulting overhead over- or underapplied in January?
Consulting overhead was Answer by $Answer in January.
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