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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 $400,000. During the past year, actual plantwide overhead was $390,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data fro the St. Cloud plant for the past year are as follows. Department Department A Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: $ 100,000 $ 453,600 120,000 465, 600 Direct labor hours 52,000 25,000 Machine-hours 16,000 54,000 Actual activity: Direct labor hours Machine-hours 53,500 24,000 16,800 56,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several iohs Proiected data pertaining only to job no 110 are as follows

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 $400,000. During the past year, actual plantwide overhead was $390,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data fro the St. Cloud plant for the past year are as follows. Department Department A Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: $ 100,000 $ 453,600 120,000 465, 600 Direct labor hours 52,000 25,000 Machine-hours 16,000 54,000 Actual activity: Direct labor hours Machine-hours 53,500 24,000 16,800 56,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several iohs Proiected data pertaining only to job no 110 are as follows

FINANCIAL ACCOUNTING
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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Compute the under- or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate calculations to 2 decimal places.)

-under or over?

-by how much?

 

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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 $400,000. During the past year, actual plantwide overhead was $390,000. 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. Department Department A B Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: $ 100,000 120,000 $ 453, 600 465, 600 Direct labor hours 52,000 25,000 Machine-hours 16,000 54,000 Actual activity: Direct labor hours 53,500 24,000 Machine-hours 16,800 56,000 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. Direct materials $22,000 Direct labor cost: Department A (3,000 hr) 45,000 Department B (1,100 hr) Machine-hours projected: 10,800 Department A 240 Department B Units produced 1,200 8,000
Transcribed Image Text: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 $400,000. During the past year, actual plantwide overhead was $390,000. 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. Department Department A B Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: $ 100,000 120,000 $ 453, 600 465, 600 Direct labor hours 52,000 25,000 Machine-hours 16,000 54,000 Actual activity: Direct labor hours 53,500 24,000 Machine-hours 16,800 56,000 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. Direct materials $22,000 Direct labor cost: Department A (3,000 hr) 45,000 Department B (1,100 hr) Machine-hours projected: 10,800 Department A 240 Department B Units produced 1,200 8,000
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