MANAGERIAL ACCT-CONNECT W/PROCTORIO.ONLY

17th Edition

ISBN: 9781265572297

Author: Garrison

Publisher: MCG

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Textbook Question

Chapter 2, Problem 13E

EXERCISE 2—13 Departmental Predetermined Overhead Rates LO2−1, LO2−2, LO2−4

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

	Department
	Cutting	Finishing
Direct labor-hours	6,000	30,000
Machine-hours	48,000	5,000
Total fixed manufacturing overhead cost	$264,000	$366,000
Variable manufacturing overhead per machine-hour	$2.00	-
Variable manufacturing overhead per direct labor-hour	-	$4.00

Required:

Compute the predetermined overhead rate for each department.
The job cost sheet for Job 203, which was started and completed during the year, showed the following:

	Department
	Cutting	Finishing
Direct labor-hours	6	20
Machine-hours	80	4
Direct materials	$500	$310
Direct labor cost	$108	$360

page 91

Using the predetermined overhead rates that you computed in (1) above, compute the total manufacturing cost assigned to Job 203.

Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Explain. No computations are necessary.

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Chapter 2, Problem 12E

Chapter 2, Problem 14E

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Chapter 2 Solutions

MANAGERIAL ACCT-CONNECT W/PROCTORIO.ONLY

Ch. 2.A - EXERCISE 2A-1 Activity-Based Absorption Costing...Ch. 2.A - EXERCISE 2A-2 Activity-Based Absorption Costing as...Ch. 2.A - EXERCISE 2A-3 Activity-Based Absorption Costing as...Ch. 2.A - PROBLEM 2A-4 Activity-Based Absorption Costing as...Ch. 2.A - Prob. 5P Ch. 2.A - CASE 2A-6 Activity-Based Absorption Costing and...Ch. 2.B - EXERCISE 2B-1 Overhead Rate Based on Capacity...Ch. 2.B - EXERCISE 2B-2 Overhead Rates and Capacity Issues...Ch. 2.B - Prob. 3P Ch. 2.B - Prob. 4C

Ch. 2 - Prob. 1Q Ch. 2 - What is absorption costing?Ch. 2 - What is normal costing?Ch. 2 - How is the unit product cost of a job calculated? Ch. 2 - Explain the four-step process used to compute a...Ch. 2 - What is the purpose of the job cost sheet in a...Ch. 2 - Explain why some production costs must be assigned...Ch. 2 - Why do companies use predetermined overhead rates...Ch. 2 - What factors should be considered in selecting an...Ch. 2 - If a company fully allocates all of its overhead...Ch. 2 - Would you expect the amount of applied overhead...Ch. 2 - Prob. 12Q Ch. 2 - What is a plantwide overhead rate? Whyare multiple...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - Prob. 3AE Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - Prob. 1F15 Ch. 2 - Prob. 2F15 Ch. 2 - Prob. 3F15 Ch. 2 - Prob. 4F15 Ch. 2 - Prob. 5F15 Ch. 2 - Prob. 6F15 Ch. 2 - Prob. 7F15 Ch. 2 - Prob. 8F15 Ch. 2 - Prob. 9F15 Ch. 2 - Prob. 10F15 Ch. 2 - Prob. 11F15 Ch. 2 - Sweeten Company had no jobs in progress at the...Ch. 2 - Prob. 13F15 Ch. 2 - Prob. 14F15 Ch. 2 - Prob. 15F15 Ch. 2 - EXERCISE 2-1 Compute a Predetermined Overhead Rate...Ch. 2 - Prob. 2E Ch. 2 - EXERCISE 2–3 Computing Total Job Costs and Unit...Ch. 2 - EXERCISE 24 Computing Total Job Costs and Unit...Ch. 2 - EXERCISE 2-5 Computing Total Job Costs and Unit...Ch. 2 - Prob. 6E Ch. 2 - EXERCISE 2-7 Job-Order Costing; Working Backwards...Ch. 2 - EXERCISE 2-8 Applying Overhead Cost; Computing...Ch. 2 - EXERCISE 2–9 Job-Order Costing and Decision Making...Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Prob. 12E Ch. 2 - EXERCISE 2—13 Departmental Predetermined Overhead...Ch. 2 - EXERCISE 214 Job-Orders Costing for a Service...Ch. 2 - Prob. 15E Ch. 2 - PROBLEM 2—16 Plantwide Predetermined Overhead...Ch. 2 - PROBLEM 217 Plantwide and Departmental...Ch. 2 - Prob. 18P Ch. 2 - Prob. 19P Ch. 2 - Prob. 20P Ch. 2 - PROBLEM 2-21 Plant wide Versus Multiple...Ch. 2 - CASE 2-22 Plantwide versus Departmental Overhead...

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