1.
To calculate: The total overhead allocated to each job under a simple costing system allocated based on machine hours.
Given information:
Machine hours of Job 215 are 40 hours.
Machine hours of Job 325 are 60 hours.
Total budgeted
Total machine hours are 10,500 hours
2.
To calculate: The total overhead allocated to each job under the activity based coating system.
Given information:
Total budgeted packaging overheads are $19,950.
Total number of units produced is 3,800.
Total budgeted purchasing overheads are $35,000.
Total number of purchase orders processed is 2,000.
Total budgeted material handling overheads are $43,750.
Total material moves are 5,000.
Total budgeted machine maintenance overheads are $118,650.
Total machine hours are 10,500.
Total budgeted product inspection overheads are $9,450.
Total number of inspections is 1,200.
3.
To explain: The reason of preferring the ABC system over Simple costing system.
Trending nowThis is a popular solution!
Chapter 5 Solutions
Cost Accounting, Student Value Edition (15th Edition)
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education