1.
Introduction:
To calculate: Plant wide overhead rate.
1.
Answer to Problem 1TF15
Plant wide overhead rate is $57 per direct labor hour
Explanation of Solution
Plant wide overhead rate
Plant wide overhead rate is $57 per direct labor hour
2.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Overhead rate allocated to product Y is $456000 and product Z is $228000.
2.
Answer to Problem 1TF15
Overhead rate allocated to product Y is $456000 and product Z is $228000.
Explanation of Solution
- Overhead rate :
Overhead rate allocated to product Y is $456000.
Overhead rate allocated to product Z is $228000.
3.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Activity rate for the machine activity
3.
Answer to Problem 1TF15
Activity rate for the machine activity is $20 per machine hour
Explanation of Solution
Activity rate for the machine activity
Activity rate for the machine activity is $20 per machine hour
4.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Activity rate for the machine activity per set up
4.
Answer to Problem 1TF15
Activity rate for the machine activity is $500 per set up
Explanation of Solution
Activity rate for the machine set up activity
Activity rate for the machine activity is $500 per set up
5.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Activity rate for the machine activity per product
5.
Answer to Problem 1TF15
Activity rate for the machine activity is $500 per product
Explanation of Solution
Activity rate for the product design activity
Activity rate for the machine activity is $500 per product
6.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Activity rate for the machine activity per labor hour
6.
Answer to Problem 1TF15
Activity rate for the machine activity is $25 per labor hour
Explanation of Solution
Activity rate for general factory activity
Activity rate for the machine activity is $25 per labor hour
7.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
Machine set up activity consider the activity as per the batch the machine set.
7.
Answer to Problem 1TF15
Machine set up activity consider the activity as per the batch the machine set
Explanation of Solution
Machine set up activity consider the activity as per the batch the machine set activity which change from batch-to-batch is considered as the batch level activity.
8.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
Product design activity is the products level activity
8.
Answer to Problem 1TF15
Product design activity is the products level activity because it is based on the number of the product manufactured.
Explanation of Solution
Product design activity is the products level activity because it is based on the number of the product manufactured. The product designed activity which is based on the number of product is considered as the product level activity.
9.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Total overhead cost to be assigned to product Y
9.
Answer to Problem 1TF15
Total overhead cost to be assigned to product Y is 407,000
Explanation of Solution
Manufacturing overhead cost to be assigned to the product Y using ABC system:
| Activity | Rate $ | Measure | Overhead cost assigned $ |
| Machining | 20 | 7000 | 140,000 |
| Machine set ups | 500 | 50 | 25,000 |
| Product designs | 42000 | 1 | 42,000 |
| General factory | 25 | 8000 | 200,000 |
| Total overhead cost to be assigned to product Y | 407,000 |
Total overhead cost to be assigned to product Y is 407,000
10.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Total overhead cost to be assigned to product Z
10.
Answer to Problem 1TF15
Total overhead cost to be assigned to product Z is 277,000
Explanation of Solution
Manufacturing overhead cost to be assigned to the product Z using ABC system:
| Activity | Rate $ | Measure | Overhead cost assigned $ |
| Machining | 20 | 3000 | 60,000 |
| Machine set ups | 500 | 150 | 75,000 |
| Product designs | 42000 | 1 | 42,000 |
| General factory | 25 | 4000 | 100,000 |
| Total overhead cost to be assigned to product Z | 277,000 |
Total overhead cost to be assigned to product Z is 277,000
11.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Percentage of the total overhead cost allocated for product Y and Z
11.
Answer to Problem 1TF15
Percentage of the total overhead cost allocated for product is 66.67% and Z is 33.33%.
Explanation of Solution
The percentage of the total overhead cost allocated to product Y and Z as show below:
| Particular | Product Y | Product Z | |
| a. | Overhead allocated to each department | $456000 | 228000 |
| b. | Total overhead cost | 684000 | 68400 |
| Percentage of the total overhead cost allocated | 66.67% | 33.33% |
Percentage of the total overhead cost allocated for product is 66.67% and Z is 33.33%.
12.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Percentage of the machine cost allocated for both product
12.
Answer to Problem 1TF15
Percentage of the machine cost allocated for product is 70% and Z is 30%.
Explanation of Solution
The percentage of machine cost allocated to product Y and Z as show below:
| Particular | Product Y | Product Z | |
| a. | Overhead allocated to each department | $140000 | 60,000 |
| b. | Total overhead cost | 200,000 | 200,000 |
| Percentage of the total overhead cost allocated | 70% | 30.% |
Percentage of the machine cost allocated for product is 70% and Z is 30%.
13.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Percentage of the total overhead machine setup cost allocated for product Y and Z.
13.
Answer to Problem 1TF15
Percentage of the total overhead machine setup cost allocated for product is 25% and Z is 75%.
Explanation of Solution
The percentage of the machine setup cost allocated to product Y and Z as show below:
| Particular | Product Y | Product Z | |
| a. | Overhead allocated to each department | $250000 | 75,000 |
| b. | Total overhead cost | 100,000 | 100,000 |
| Percentage of the total overhead cost allocated | 25% | 75.% |
Percentage of the total overhead machine setup cost allocated for product is 25% and Z is 75%.
14.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Percentage of the total overhead product design cost allocated for product Y and Z
14.
Answer to Problem 1TF15
Percentage of the total overhead product design cost allocated for product is 25% and Z is 75%.
Explanation of Solution
The percentage of product design cost allocated to product Y and Z as show below:
| Particular | Product Y | Product Z | |
| a. | Overhead allocated to each department | $420000 | 42,000 |
| b. | Total overhead cost | 84,000 | 84,000 |
| Percentage of the total overhead cost allocated | 50% | 50% |
Percentage of the total overhead product design cost allocated for product is 25% and Z is 75%.
15.
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To calculate: Percentage of the total overhead product design cost allocated for product is Y and Z.
15.
Answer to Problem 1TF15
Percentage of the total overhead product design cost allocated for product is 66.67% and Z is 33.33%.
Explanation of Solution
The percentage of general
| Particular | Product Y | Product Z | |
| a. | Overhead allocated to each department | $200,000 | 100,000 |
| b. | Total overhead cost | 300,000 | 300,000 |
| Percentage of the total overhead cost allocated | 66.67% | 33.33% |
Percentage of the total overhead product design cost allocated for product is 66.67% and Z is 33.33%.
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Chapter 5 Solutions
MANAGERIAL ACCOUNTING CONNECT ACCESS <C>
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