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 compute : The cot per minutes of the resource supplied in shipping department, time driven activity rate for all three activities, and the total labor cost consumed by customer L, M and N.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5A, Problem 5A.4P

1.

To determine

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 compute: The cot per minutes of the resource supplied in shipping department, time driven activity rate for all three activities, and the total labor cost consumed by customer L, M and N.

2.

To determine

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 compute: The used capacity in minutes, unused capacity in minutes, unused capacity in number of employees, impact on expenses of matching capacity with demand.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Part 3: Activity-Based Costing Similarly, Mr. Suncat has a couple of questions for you regarding the activity-based costing method. He has provided the following additional information: Cost Pools Initial customer meeting Purchasing ingredients Cost Drivers Number of hours spent with customer Number of purchase requisitions Direct Labor hours Estimated Overhead $15,000 $15,000 $40,000 $70,000 3. Custom Wedding Cake Expected Use of Cost Drivers 4.5 hours $10,000 1000 requisitions 5.5 hours 9.5 hours Expected Use of Cost Driver: Basic Wedding Cake 0.75 hour Making and baking the wedding cakes Decorating the wedding cakes Final customer Direct Labor hours Number of meeting and cake wedding cakes delivery a. Explain the difference between a job-order costing system and an activity-based costing system. 4200 150 requisitions 1.25 hour 1.75 hours Expected Use of Cost Driver Multi-Layer Wedding Cake 1.25 hours 1500 cakes 300 requisitions 2 hours 3 hours Expected Use of Cost 1700 cakes Driver…

ABSORPTION COSTING VERSUS THROUGHPUT COSTING The book The Goal illustrates the concept of throughput costing. For the problem below prepare all journal entries and determine the impact on the income statement of the differences between absorption costing (normal accounting) and throughput costing. HINT: pay very careful attention to definitions of throughput, inventory and operating expense from the book BUDGETED MANUFACTURING COSTS DIRECT MATERIAL $20 PER UNIT DIRECT LABOR $2 PER UNIT VARIABLE OVERHEAD $10 PER UNIT FIXED OVERHEAD $150,000 YEAR 1 NO BEGINNING INVENTORY ACTUAL COSTS OF PRODUCTION EQUALS ABOVE MANUFACTURING COSTS PURCHASE DIRECT MATERAILS OF $200,000 INCUR SELLING AND ADMIN COSTS OF $80,000 #UNITS PRODUCED 10,000 # UNITS SOLD 9,000 SALES PRICE OF UNITS SOLD $100 YEAR 2 THERE…

Problem 2 Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Cost P1,372,448 P33,300 P126,160 Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours The activity rate for the "designing products" activity cost pool is answer must be in nearest peso A The activity rate for the "setting up batches" activity cost pool is answer should be in nearest peso A The activity rate for the "assembling products" activity cost pool is answer must be in nearest peso A