Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props, Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all produetions Pixed overhead cost Variable overbead cost per direct labor-dollar 58,390,000 $ 5,034,000 $0.19 Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials Direct labor cost $1,446,000 2,517,000 Compute the total job cost for this particular film. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DL$ Required 1 Required 2 > Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decir Direct materials Direct labor Overhead applied Total job cost Required 1
Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props, Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all produetions Pixed overhead cost Variable overbead cost per direct labor-dollar 58,390,000 $ 5,034,000 $0.19 Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials Direct labor cost $1,446,000 2,517,000 Compute the total job cost for this particular film. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DL$ Required 1 Required 2 > Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decir Direct materials Direct labor Overhead applied Total job cost Required 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
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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Transcribed Image Text:Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as
costumes and props, Its direct labor includes each film's actors, directors, and extras. The company's overnead costs include items
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applles its
overhead cost to films based on direct labor-dollars.
At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all produetions
Pixed overhead cost
Variable overhead cost per direct labor-dollar
5 8,390,000
$ 5,034.000
1 0.19
Required:
1. Compute the predetermined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials
pirect labor cost
$1,446,000
2,517,000
Compute the total job cost for this particular film.
Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per DL$
Required 1
Required 2 >
Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decimal
Direct materials
Direct labor
Overhead applied
Total job cost
< Required 1
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