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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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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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