Loose Leaf For Introduction To Managerial Accounting

8th Edition

ISBN: 9781260190175

Author: Brewer Professor, Peter C.; Garrison, Ray H; Noreen, Eric

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 2, Problem 19P

Multiple Predetermined Overhead Rates; Applying Overhead.
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the war, the company provided the following estimates:
Chapter 2, Problem 19P, Multiple Predetermined Overhead Rates; Applying Overhead. High Desert Potteryworks makes a variety , example 1
Job 205 was started on August 1 and completed on August 10. The company’s cost records show the fo11oing information concerning the job:

Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.
2. Compute the total overhead cost applied to Job 205.
3. That would be the total manufacturing cost recorded for Job 205? If the job contained 50 units, what would be the unit product cost?

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Chapter 2, Problem 18P

Chapter 2, Problem 20P

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Chapter 2 Solutions

Loose Leaf For Introduction To Managerial Accounting

Ch. 2 - What is job-order costing?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...

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Solution Summary: The author explains the calculation of the pre-determined overhead rate in Molding and Painting Department and the manufacturing cost of Job 205.

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Chapter 2 Solutions