The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours. Machine-hours Actual activity: Direct labor hours. Machine-hours Direct materials Direct labor cost: Department A (2,000 hr) Department B (500 hr) Machine-hours projected: Department A Department B Units produced $20,000 30,000 6,000 Department. 100 1,200 10,000 $ 100,000 110,000 50,000 10,000 51,000 10,500 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. Department B $ 500,000 520,000 10,000. 50,000 9,000 52,000
The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours. Machine-hours Actual activity: Direct labor hours. Machine-hours Direct materials Direct labor cost: Department A (2,000 hr) Department B (500 hr) Machine-hours projected: Department A Department B Units produced $20,000 30,000 6,000 Department. 100 1,200 10,000 $ 100,000 110,000 50,000 10,000 51,000 10,500 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. Department B $ 500,000 520,000 10,000. 50,000 9,000 52,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Round your intermediate calculations and final answer to 2 decimal places.
please solve this correctly and completely
![[The following information applies to the questions displayed below.]
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job
order costing system for its batch production processes. The St. Cloud plant has two departments through which most
jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's
overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from
the St. Cloud plant for the past year are as follows.
Budgeted department overhead
(excludes plantwide overhead)
Actual department overhead
Expected total activity:
Direct labor hours.
Machine-hours
Actual activity:
Direct labor hours.
Machine-hours
Direct materials
Direct labor cost:
Department A (2,000 hr)
Department B (500 hr)
Machine-hours projected:
Department A
Department B
Units produced
$20,000
30,000
6,000
Department
100
1,200
10,000
$ 100,000
110,000
50,000
10,000
51,000
10,500
For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for
several jobs. Projected data pertaining only to job no. 110 are as follows.
Department
B
$ 500,000
520,000
10,000
50,000
9,000
52,000
Required:
a-1. Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs.
Use expected total direct labor hours to compute the overhead rate.
a-2. What is the expected cost per unit produced for job no. 110?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c4ae026-40eb-4d69-8ff7-cf682bd6bf93%2F15eca28c-9b4b-454c-b241-3cbb4d622282%2Fh9cjn8m_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job
order costing system for its batch production processes. The St. Cloud plant has two departments through which most
jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's
overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from
the St. Cloud plant for the past year are as follows.
Budgeted department overhead
(excludes plantwide overhead)
Actual department overhead
Expected total activity:
Direct labor hours.
Machine-hours
Actual activity:
Direct labor hours.
Machine-hours
Direct materials
Direct labor cost:
Department A (2,000 hr)
Department B (500 hr)
Machine-hours projected:
Department A
Department B
Units produced
$20,000
30,000
6,000
Department
100
1,200
10,000
$ 100,000
110,000
50,000
10,000
51,000
10,500
For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for
several jobs. Projected data pertaining only to job no. 110 are as follows.
Department
B
$ 500,000
520,000
10,000
50,000
9,000
52,000
Required:
a-1. Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs.
Use expected total direct labor hours to compute the overhead rate.
a-2. What is the expected cost per unit produced for job no. 110?
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