Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 17, Problem 5E
Exercise 17-5 Departmental
Refer to the information in Exercise 17-4
Required
- Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours.
- Determine the total overhead cost assigned to each product line using the department overhead rates from required 2.
- Determine the overhead cost per unit for each product line using the department rate.
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Question Content Area
Miller Safety Equipment uses multiple production department rates to apply overhead to products. The company will allocate support department costs to production departments based on the amount of support activity
a. used by the entire production facility
b. used by the department in the prior month
c. budgeted by the department
d. used by the department
Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and
trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming
department for this year follow. (Round "OH rate and cost per unit" answers to 2 decimal places.)
Trimming
Molding
52,000 DLH
30,500 MH
$732,000
Direct labor hours
48,000 DLH
3,600 MH
$592,000
Machine hours
Overhead costs
Data for two special-order parts to be manufactured by the company in this year follow:
Part A27C
Part X82B
Number of units
9,800 units
54,500 units
Machine hours
Molding
Trimming
5,100 MH
2,600 MH
1,020 MH
650 MH
Direct labor hours
2,150 DLH
3,500 DLH
5,500 DLH
Molding
Trimming
700 DLH
Required:
1. Compute a departmental overhead rate for the molding department based on
machine hours and a department overhead rate for the trimming department based
on direct labor hours.
Molding
Trimming
2. & 3. Determine the total…
Chapter 7
Which of the following journal entries would be used to record direct labor
costs in a company having two processing departments (Department A and
Department B)?
a. Work in Process
XXX
XXX
Salaries and Wages Payable
b. Salaries and Wages Expense
Salaries and Wages payable
c. Work in Process-Department A
Work in Process-Department B
Salaries and Wages Payable
d. Salaries and Wages Payable
Work in Process
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Chapter 17 Solutions
Financial and Managerial Accounting
Ch. 17 - Prob. 1MCQCh. 17 - Prob. 2MCQCh. 17 - All of the following are examples of batch-level...Ch. 17 - Prob. 4MCQCh. 17 - Prob. 5MCQCh. 17 - Why are overhead costs allocated to products and...Ch. 17 - What are three common methods of assigning...Ch. 17 - Why are direct labor hours and machine hours...Ch. 17 - What are the advantages of using a single plant...Ch. 17 - The usefulness of a single plant wide overhead...
Ch. 17 - What is a cost object?Ch. 17 - Explain why a single plantwide overhead rate can...Ch. 17 - Why are multiple departmental overhead rates more...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQCh. 17 - Prob. 14DQCh. 17 - 15. What are the four activity levels associated...Ch. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 1QSCh. 17 - Prob. 2QSCh. 17 - Plant wide rate method P1 A manufacturer uses...Ch. 17 - Prob. 4QSCh. 17 - Computing departmental overhead rates P2 Refer to...Ch. 17 - QS 17-6 Advantages of plant wide and department...Ch. 17 - Prob. 7QSCh. 17 - Prob. 8QSCh. 17 - Prob. 9QSCh. 17 - Prob. 10QSCh. 17 - Prob. 11QSCh. 17 - Prob. 12QSCh. 17 - Prob. 13QSCh. 17 - Prob. 14QSCh. 17 - Prob. 15QSCh. 17 - Exercise 17-1 Computing Plantwide overhead rates...Ch. 17 - Prob. 2ECh. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Exercise 17-5 Departmental overhead rates P2 Refer...Ch. 17 - Prob. 6ECh. 17 - Prob. 7ECh. 17 - Prob. 8ECh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 11ECh. 17 - Prob. 12ECh. 17 - Prob. 13ECh. 17 - Exerciser 17-14 Activity-based costing P3 A2...Ch. 17 - Prob. 15ECh. 17 - Prob. 16ECh. 17 - Exercise 17-17 Identifying activity levels C3...Ch. 17 - Prob. 18ECh. 17 - Problem 17-1A Comparing costs using ABC with the...Ch. 17 - Prob. 2PSACh. 17 - Prob. 3PSACh. 17 - Prob. 4PSACh. 17 - Prob. 5PSACh. 17 - Prob. 1PSBCh. 17 - Prob. 2PSBCh. 17 - Prob. 3PSBCh. 17 - Prob. 4PSBCh. 17 - Prob. 5PSBCh. 17 - Prob. 17SPCh. 17 - Prob. 1BTNCh. 17 - Prob. 2BTNCh. 17 - Prob. 3BTNCh. 17 - Prob. 4BTNCh. 17 - Accounting professionals who for private companies...Ch. 17 - Prob. 6BTNCh. 17 - Prob. 7BTNCh. 17 - Visit and observe the processes of three different...Ch. 17 - Prob. 9BTN
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- FIFO Method, Single Department Analysis, One Cost Category Refer to the data in Problem 6.33. Required: Prepare a cost of production report for the Fabrication Department for December using the FIFO method of costing.arrow_forwardJournalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.arrow_forwardEXERCISE 5-15 Comprehensive Activity-Based Costing Exercise L05-2, L05-3, L05-4, L05-5 Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries. Other overhead costs. Total overhead costs.. Activity Cost Pool Supporting direct labor. ... Order processing Customer support. Other Wages and salaries. . . . . . . Other overhead costs..... vollot ynsqmos silt pode noitsmolni lenonibb neupon edull porib od T $300,000 on adol 100,000A #T Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization-sustaining activity Supporting Direct Labor 40% 30% Order Processing $400,000 Distribution of Resource Consumption Across Activities 3210 30% 10% Customer Support 20% 20% Total Activity for the Year 20,000 DLHs 400 orders 200 customers Not applicable Senasisch Other 10% 40% Total 100% 100%arrow_forward
- Dengerarrow_forward97:/7:1 1TƏLƏ O d. They are calculated for each department by dividing total estimated manufacturing overhead cost by total estimated units of the allocation base. O e. They are based on estimated total manufacturing overhead costs stion A Company uses a job-order costing system with a single plantwide predetermined overhead rate based on labor-hours. The company based its predetermined overhead rate for the current year on total estimated manufacturing overhead cost of $120,000 and 2,000 labor-hours. The job sheet of Job1112 shows that the number of units produced in this job order is 5 units. This job required 500 labor-hours and incurred direct materials cost of $10,000 and direct labor costs of $30,000. The unit product cost for dout of Job1112 is: UC O a. $14,0000 O b. $32,000 O c. $6,000 O d. None of the given answers. O e. $70,00 EVIOUS PAGE NEXT PAGEarrow_forwardCan you answer the questions in 17-3B #1-4arrow_forward
- Describe the Source 01 the data for increasing Work in Process for (a) direct materials, (b) direct labor, and (c) factory overheadarrow_forwardOverhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per productarrow_forwardCost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate of 6 per direct labor hour. Overhead is applied in Department 2 at the rate of 8 per machine hour. Direct labor wages average 10 per hour in each department. Required: Fill in the missing data for each job.arrow_forward
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