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 B Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours $ 100,000 120,000 $ 453,600 465,600 52,000 16,000 25,000 54,000 53,500 16,800 24,000 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 Direct labor cost: $22,000 Department A (3,000 hr) DepartmentB (1,100 hr) Machine-hours projected: Department A Department B Units produced 45,000 10,800 240 1,200 8,000 Required: a-1. Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jo 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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. (Round your answer to 2 decimal places.)

- overhead rate per direct labor hour?

What is the expected cost per unit produced for job no. 110? (Round your intermediate calculations and final answer to 2 decimal places.)

- manufactoring costs for Job 110 per unit?

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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
B
Budgeted department overhead
(excludes plantwide overhead)
Actual department overhead
Expected total activity:
Direct labor hours
$ 100,000
120,000
$ 453, 600
465,600
52,000
16,000
25,000
54,000
Machine-hours
Actual activity:
Direct labor hours
24,000
56,000
53,500
Machine-hours
16,800
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
Dir
por cost:
Department A (3,000 hr)
Department B (1,100 hr)
Machine-hours projected:
45,000
10,800
Department A
Department B
Units produced
240
1,200
8,000
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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