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 $387,000. 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 (3,000 hr) Department B (1,800 hr) Machine-hours projected: Department A Department B Units produced $22,400 45,000 11,600 Department A Department B $ 473,000 $ 108,800 125,000 485,000 250 1,200 9,000 54,000 17,000 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. 56,500 17,800 25,000 55,000 24,100 57,000 d. Compute the under- or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate calculations to 2 decimal places.)
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 $387,000. 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 (3,000 hr) Department B (1,800 hr) Machine-hours projected: Department A Department B Units produced $22,400 45,000 11,600 Department A Department B $ 473,000 $ 108,800 125,000 485,000 250 1,200 9,000 54,000 17,000 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. 56,500 17,800 25,000 55,000 24,100 57,000 d. Compute the under- or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
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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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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 $387,000. 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 (3,000 hr)
Department B (1,800 hr)
Machine-hours projected:
Department A
Department B
Units produced
$22,400
Overapplied
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.
45,000
11,600
Department A
$ 108,800
125,000
250
1,200
9,000
54,000
17,000
56,500
17,800
Department B
$ 473,000
485,000
25,000
55,000
24,100
57,000
d. Compute the under- or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate calculations to 2
decimal places.)
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