The Mixing Department manager of Riverbed Company is able to control all overhead costs except rent, property taxes, and salaries.Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are:Indirect labor$15,270Property taxes $2,310Indirect materials8,300Rent2,890Lubricants1,650Salaries14,620Maintenance3,420Utilities5,010Actual costs incurred for January 2017 are indirect labor $12,870; indirect materials $12,210; lubricants $1,790; maintenance$3,420; property taxes $2,090; rent $2,890; salaries $14,620; and utilities $7,420.(a)Prepare a responsibility report for January 2017.RIVERBED COMPANYMixing DepartmentResponsibility ReportControllable CostsBudgetActualDifferenceFavorable FUnfavorable UNeither Favorablenor Unfavorable N

The provided responsibility report for the Mixing Department of Riverbed Company for January 2017…

Answered: The Mixing Department manager of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Carla Vista Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,804,000 902,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $113,600, and 1819C, with total direct labour charges of $390,100. Machine hours were 287 hours for 17688 and 647 hours for 1819C. Direct materials issued for 1768B amounted to $220,000, and for 1819C they amounted to $420,500. Total charges to the Manufacturing Overhead Control account for the year were $898,500, and direct labour charges made to all jobs amounted to $1,583,600, representing 247,500 direct labour hours. There were no beginning inventories. In…
Crane Corporation accumulates the following data relative to jobs started and finished during the month of June 2025. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.00 $1.90 11,000 10,600 $162,800 $159,600 14,800 15,200 $201,200 $205,200 41,500 $62,250 $3 $1.50 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $450,000. Selling and administrative expenses were $35,000. Assume that the amount of raw materials purchased equaled the amount used.
Cullumber Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour $1809.000 Manufacturing overhead 904,500 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $ 113,800, and 1819C. with total direct labour charges of $ 390,200. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $ 228.000. and for 1819C they amounted to $ 420.900, Total charges to the Manufacturing Overhead Control account for the year were $ 899,000, and direct labour charges made to all jobs amounted to $ 1,577.200, representing 248,100 direct labour hours. There were no beginning inventories. In…
Crane Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,810,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $111,000, and 1819C, with total direct labour charges of $390,800. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $229,000, and for 1819C they amounted to $420,200. 905,000 Total charges to the Manufacturing Overhead Control account for the year were $902,500, and direct labour charges made to all jobs amounted to $1,582,600, representing 247,800 direct labour hours. There were no beginning inventories. In addition to…
Blossom Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year’s overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour $1,800,000 Manufacturing overhead 900,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $110,000, and 1819C, with total direct labour charges of $390,000. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $220,000, and for 1819C they amounted to $420,000.Total charges to the Manufacturing Overhead Control account for the year were $897,000, and direct labour charges made to all jobs amounted to $1,573,600, representing 247,200 direct labour hours.There were no beginning inventories. In…
Accounting for manufacturing overhead This problem continues the Piedmont Computer Company situation from Chapter 16 Piedmont Computer Company uses a job order costing system in which each batch manufactured is a different job. Piedmont Computer Company assigns direct materials and direct labor to each job. The company assigns labor costs at $25 per hour. It allocates manufacturing overhead to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2020, the controller prepared the following budget; In November 2020, Piedmont Computer Company worked on several jobs, Records for two jobs appear here: Requirements Compute Piedmont Computer Company’s predetermined overhead allocation rate for 2020. Compute the total cost of each job. Why does Piedmont assign costs to jobs?
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows. Budget Actual Indirect materials $16,000 $14,300 Indirect Labor 20,000 20,600 Utilities 10,000 10,850 Supeervision 5,000 5,000 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.
Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine hours in the Machining Department and on the basis of direct labor hours in the Assembly Department. At the beginning of 2020, the following estimates were provided for the coming year: Direct labor hours Machine hours Direct labor cost Manufacturing overhead costs Machining Direct labor hours Machine hours Direct material cost Direct labor cost 10,000 DLH 100,000 MH $80,000 $250,000 The accounting records of the company show the following data for Job # 846: Machining 50 DLH 170 MH Assembly 90,000 DLH 5,000 MH $2,700 $400 $720,000 $360,000 Assembly 120 DLH 10 MH $1,600 $900 4 Required: 1. Compute the manufacturing overhead allocation rate for each department. 2. Compute the total cost of Job #846. 3. Provide possible reasons why Hill Manufacturing uses two different cost allocation rates.
Please help me
2. Cocoa Mfg. Co. charges factory overhead to production using departmental rates. For 2019, the rates are based on the following estimates: Department A: 20,000 direct labor hours Department B: 5,000 units of production The following data are given on the departmental factory overhead of Chocolate Mfg. Co.: Service Provided by: Dept. T Before Distribution Of Service Dept. Expense Dept. S Dept. A P28,000 60% 40% Dept. B 30,000 25% 55% Dept. S 6,590 5% Dept. T 9,000 15% Requirement: Allocate the service department costs to operating departments and compute the factory overhead rate using the following methods: Direct method Step method Algebraic method
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production DataRaw materials unit cost Raw materials units used Direct labor payroll Direct labor hours worked Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for JuneVariable overhead rate per machine hour Fixed overhead rate per machine hourActual$2.25 10,600 $120,960 14,400 $189,500Standard$2.10 10,000 $120,000 15,000$193,500 42,500 $55,250 $3.00 $1.30Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and ad- ministrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.Instructions(a) Compute all of the variances for (1) direct materials and (2) direct labor. (b) Compute the total overhead variance.…

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