Yancey Productions is a film studio that uses job-order costing. The company's direct materials include 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 productions Fixed overhead cost Variable overhead cost per direct labor-dollar 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. Compute the total job cost for this particular film. Required 1 Required 2 $ 1,420,000 $ 2,511,000 Complete this question by entering your answers in the tabs given below. Direct materials Direct labor Overhead applied Total job cost Compute the total job cost for this particular film. Note: Round your intermediate calculations to 2 decimal places. $ $ $ 8,370,000 $ 5,022,000 $ 0.07 Answer is complete but not entirely correct. 1,420,000 2,511,000✔ 1,681,370 X 5,612,370
Yancey Productions is a film studio that uses job-order costing. The company's direct materials include 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 productions Fixed overhead cost Variable overhead cost per direct labor-dollar 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. Compute the total job cost for this particular film. Required 1 Required 2 $ 1,420,000 $ 2,511,000 Complete this question by entering your answers in the tabs given below. Direct materials Direct labor Overhead applied Total job cost Compute the total job cost for this particular film. Note: Round your intermediate calculations to 2 decimal places. $ $ $ 8,370,000 $ 5,022,000 $ 0.07 Answer is complete but not entirely correct. 1,420,000 2,511,000✔ 1,681,370 X 5,612,370
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 job-order costing. The company's direct materials include 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 productions
Fixed overhead cost
Variable overhead cost per direct labor-dollar
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
Compute the total job cost for this particular film.
Required 1 Required 2
Complete this question by entering your answers in the tabs given below.
Direct materials
Direct labor
Compute the total job cost for this particular film.
Note: Round your intermediate calculations to 2 decimal places.
Overhead applied
Total job cost
$ 1,420,000
$ 2,511,000
$
$
> Answer is complete but not entirely correct.
$ 8,370,000
$ 5,022,000
$ 0.07
1,420,000
2,511,000✔
1,681,370 x
5,612,370
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