Cost Accounting
Cost Accounting
15th Edition
ISBN: 9780133428834
Author: Horngren
Publisher: PEARSON
Question
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Chapter 4, Problem 4.31P

1.

To determine

To prepare: An overview diagram of P job costing system.

2.

To determine

The budgeted manufacturing overhead rate of machining department and of finishing department.

Given information:

For machining department:

Budgeted manufacturing overhead cost is $9,065,000.

Budgeted machine hour is 185,000.

For finishing department:

Budgeted manufacturing overhead cost is $8,181,000.

Budgeted direct manufacturing labor cost is $4,050,000.

3.

To determine

To compute: The total manufacturing overhead cost allocated.

4.

To determine

To compute: The cost per unit.

5.

To determine

To compute: The under or over allocated manufacturing overhead of both the department.

6.

To determine

To explain: The reason P uses 2 different manufacturing overhead cost in job costing system.

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