COST ACCOUNTING
16th Edition
ISBN: 9781323169261
Author: Horngren
Publisher: PEARSON C
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Chapter 4, Problem 4.36P
| Machining Department | Finishing Department | |
| Manufacturing overhead costs | $10,660,000 | $8,000,000 |
| Direct manufacturing labor costs | $ 970,000 | $4,000,000 |
| Direct manufacturing labor-hours | 26,000 | 160,000 |
| Machine-hours | 205,000 | 31,000 |
- 1. Prepare an overview diagram of Solomon’s job-costing system.
Required
- 2. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department?
- 3. During the month of January, the job-cost record for Job 431 shows the following:
| Machining Department | Finishing Department | |
| Direct materials used | $16,150 | $3,000 |
| Direct manufacturing labor costs | $ 350 | $1,300 |
| Direct manufacturing labor-hours | 30 | 50 |
| Machine-hours | 150 | 20 |
Compute the total manufacturing overhead cost allocated to Job 431.
- 4. Assuming that Job 431 consisted of 400 units of product what is the cost per unit?
| Machining Department | Finishing Department | |
| Manufacturing overhead incurred | $13,250,000 | $8,400,000 |
| Direct manufacturing labor costs | $ 1,000,000 | $4,300,000 |
| Machine-hours | 250,000 | 30,000 |
- 5. Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
- 6. Why might Solomon use two different manufacturing overhead cost pools in its job-costing system?
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Job costing, accounting for manufacturing overhead, budgeted rates. The Solomon Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a nishing department. Solomon uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the nishing department with direct manufacturing labor costs as the allocation base). The 2017 budget for the plant is as follows:
The Henderson Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Henderson
uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining
department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2017 budget
for the plant is as follows:
E (Click the icon to view the 2017 budget.)
Read the requirements.
Requirement 1. Identify the components of the overview diagram of Henderson's job-costing system. (Abbreviations used: Manuf. = Manufacturing.)
A Indirect Cost Pool
}
A
B Machining Department Manuf. Overhead
C Finishing Department Manuf. Overhead
Cost Allocation Base
E Machine-Hours in Machining Department
Direct Manufacturing Labor Cost
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The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining
department and a finishing department. Maclin uses normal costing with two direct-cost categories (direct
materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining
department withmachine-hours as the allocation base and the finishing department with direct
manufacturing labor costs as the allocation base). The 2017 budget for the plant is asfollows:
Machining Department
Finishing Department
Manufacturing overhead costs
$9,180,000
$8,181,000
Direct manufacturing labor costs
$920,000
$4,050,000
Direct manufacturing labor-hours
34,000
150,000
Machine-hours
180,000
37,000
Question:
5. Amounts at the end of 2017 are as follows:
Machining
Finishing
Department
Department
Manufacturing overhead
$10,350,000
$8,432,000
incurred
Direct manufacturing labor
$1,000,000
$4,100,000
costs
Machine-hours
200,000
33,000
Compute the under- or overallocated…
Chapter 4 Solutions
COST ACCOUNTING
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