Exercise 15

704 WordsJan 8, 20153 Pages
Exercise 15-5 Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $315,000 for the year, and machine usage is estimated at 126,000 hours. For the year, $330,174 of overhead costs are incurred and 130,100 hours are used. Exercise 16-3 The ledger of Custer Company has the following work in process account. Work in Process—Painting 5/1 Balance 4,250 5/31 Transferred out ? 5/31 Materials 6,690 5/31 Labor 4,310 5/31 Overhead 1,400 5/31 Balance ? Production records show that there were 510 units in the beginning inventory, 30% complete, 1,580 units started, and 1,560 units transferred out. The beginning work in process…show more content…
Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations. Standard Custom Direct labor costs $58,400 $116,000 Machine hours 1,310 1,160 Setup hours 100 440 Total estimated overhead costs are $305,300. Overhead cost allocated to the machining activity cost pool is $199,600, and $105,700 is allocated to the machine setup activity cost pool. (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.) Predetermined overhead rate % of direct labor
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