The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Maclin uses normal costing with two direct-cost categories (dir materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department withmachine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2017 budget for the plant is asfollows: Machining Department Finishing Department Manufacturing overhead costs $9,180,000 $8,181,000 Direct manufacturing labor costs $920,000 $4,050,000 Direct manufacturing labor-hours 34,000 150,000 Machine-hours 180,000 37,000 Question: 3. During the month of January, the job-cost record for Job 431 shows the following: Machining Finishing Department Department Direct materials used $14,500 $4,500 Direct manufacturing labor $700 $1,400 costs Direct manufacturing 30 70 labor-hours Machine-hours 130 15 Compute the total manufacturing overhead cost allocated to Job 431. 4. Assuming that Job 431 consisted of 100 units of product, what is the cost per unit?

The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Maclin uses normal costing with two direct-cost categories (dir materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department withmachine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2017 budget for the plant is asfollows: Machining Department Finishing Department Manufacturing overhead costs $9,180,000 $8,181,000 Direct manufacturing labor costs $920,000 $4,050,000 Direct manufacturing labor-hours 34,000 150,000 Machine-hours 180,000 37,000 Question: 3. During the month of January, the job-cost record for Job 431 shows the following: Machining Finishing Department Department Direct materials used $14,500 $4,500 Direct manufacturing labor $700 $1,400 costs Direct manufacturing 30 70 labor-hours Machine-hours 130 15 Compute the total manufacturing overhead cost allocated to Job 431. 4. Assuming that Job 431 consisted of 100 units of product, what is the cost per unit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tillman Corporation uses a Job Order Costing system and has two production departments--Molding and Assembly. The company applies manufacturing overhead to production orders on the basis of direct labor costs. Separate departmental predetermined overhead rates are used. Budgeted manufacturing costs for the year are as follows: Molding Assembling Direct Materials P700,000 P100,000 Direct Labor 200,000 800,000 Manufacturing Overhead 600,000 400,000 The actual material and labor costs charged to Job 432 were as follows: Direct Materials 25,000 Direct Labor Molding 8,000 Assembling 12,000 20,000 Tillman applies manufacturing overhead to production orders on the basis of direct labor cost using a departmental rate predetermined at the beginning of the year based on the annual budget. The total manufacturing cost associated with Job 432 should be?
Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. CB uses two direct cost categories: direct materials and direct manufacturing labour. Johnson feels that manufacturing overhead is most closely related to material usage. Therefore, CB allocates manufacturing overhead to production based upon pounds of materials used. At the beginning of 2021, CB budgeted annual production of 200,000 blocks and adopted the following standards for each block: Input Cost/Block Direct materials 0.5 Ib. @ $12/lb. $ 6.00 Direct manufacturing labour 1.4 hours @ $20/hour 28.00 Manufacturing overhead: Variable $6/lb. 0.5 Ib. 3.00 Fixed $15/lb. 0.3 Ib. 4.50 Standard cost per block $41.50 Actual results for April 2021 were as follows: Production 24,000 blocks Direct materials purchased 12,000 lb. at $13/lb. Direct materials used 11,450 lb. Direct manufacturing labour 38,000 hours for $798000 Variable manufacturing overhead $68,150 Fixed manufacturing overhead…
BARC Shannon Corporation manufactures custom cabinets for kitchens. It uses an actual costing system with two direct cost categories-direct materials and direct manufacturing labor-and one indirect-cost pool, manufacturing overhead costs. It provides the following information for 2017. E (Click the icon to view the information for 2017.) Read the requirement. Data table Begin by calculating the actual manufacturing overhead rate. (Assume the cost allocation base is direct labor hours.) Actual manufacturing Budgeted manufacturing overhead costs 1,368,000 overhead rate Budgeted direct manufacturing labor-hours 38.000 hours Actual manufacturing overhead costs 2$ 1,260,000 Actual direct manufacturing labor-hours 28,000 hours Print Done
The Oakman Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.40 with direct labor hours as the allocation base. The company has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing Department, $493,500, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 210,000. The estimated costs for the Packaging Department, $76,250, will be allocated based on machine hours, and the estimated machine hours for the year are 25,000. In October, the company incurred 20,000 direct labor hours in the Mixing Department and 13,000 machine hours in the Packaging Department. Requirement 1. Compute the predetermined overhead allocation rates. Round to two decimal places. Begin by selecting the formula to calculate the predetermined…
Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining DESKTOP- Windows Number of setups Number of products Direct labor-hours General factory cost Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y +1 (252) 484-2153 Oh nun Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.) Product Z (@ 2 0…
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 16,000 11,000 Direct labor-hours 18,000 6,000 Total fixed manufacturing overhead cost $ 92,800 $ 28,800 Variable manufacturing overhead per machine-hour $ 1.20 Variable manufacturing overhead per direct labor-hour $ 5.00 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 50 40 Direct labor-hours 60 30 Direct materials $ 430 $ 180 Direct labor cost $ 800 $ 540…
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $23.18 per unit, while product B has been assigned $9.84 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs. $426,000 Machine setup Materials handling 171,000 54,000 Electric power The following cost information pertains to the production of A and B, just two of Hakara's many products: Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours Product A Product B A 5,000 $ 37,000 $ 24,000 100 1,000 2,000 X Answer is not complete. Cost per Unit $ 18.22 X Cost Drivers Setup hours Pounds of materials. Kilowatt-hours Required: 1. Use activity-based costing to determine a unit cost for each product.…
JYD manufacturing company has two production departments: Fabrication and assembly and three service departments (general factory administration,factory maintenance and factory cafeteria) A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used. What is the total overhead cost allocated to the fabrication department
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and…
Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 58,000 units of EX300 and 12,300 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials. Direct labor Activity Cost Pool (and Activity Measure) Machining (machine-hours) EX300 $364,325 $ 118,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Setups (setup hours). Product-level (number of products) * General factory (direct labor dollars). Total manufacturing overhead cost Show Transcribed Text TX500 $ 160,550 $ 41,500 Complete this question by entering your answers in the tabs below. Activity Cost Pool (and Activity…
Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information: Budget for 2017 Actual Results for 2017 Direct material costs $2,250,000 $2,150,000 Direct manufacturing labor costs 1,700,000 1,650,000 Manufacturing overhead costs 3,060,000 3,217,500 Q. Compute the actual and budgeted manufacturing overhead rates for 2017.