e. A textbook publisherf. A home builderg. An advertising agencyh. A dairyi A flour milli A paint manufacturerk. A nursing homeq. A management co1. A cell phone battery manufacturers. A catering servicet. A paper millI. A computer repair shop4-22 Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses ajob-costing system with two direct-cost categories (direct materials and direct manufacturing labor) andone manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manu-facturing labor costs. Dakota provides the following information:Budget for 2017Actual Results for 2017Direct material costs$2,250,000$2,150,000Direct manufacturing labor costs1,700,0001,650,000Manufacturing overhead costs3,060,0003,217,5001. Compute the actual and budgeted manufacturing overhead rates for 2017.2 During March, the job-cost record for Job 626 contained the following information:Direct materials usedDirect manufacturing labor costs$55,000$45,000Compute the cost of Job 626 using (a) actual costing and (b) normal costing.3. At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costing.Why is there no under- or overallocated manufacturing overhead under actual costing?4. Why might managers at Dakota Products prefer to use normal costing?4-23 Job costing, normal and actual costing. Atkinson Construction assembles residential houses.

Name: e. A textbook publisherf. A home builderg. An advertising agencyh. A
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: e. A textbook publisherf. A home builderg. An advertising agencyh. A dairyi A flour milli A paint manufacturerk. A nursing homeq. A management co1. A cell phone battery manufacturers. A catering servicet. A paper millI. A computer repair shop4-22 Ac

Business

Accounting

4-22 Actual costing, normal costing, accounting for manufacturing overhead. Dakota job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manu- facturing labor costs. Dakota provides the following information: uses a Budget for 2017 $2,250,000 Actual Results for 2017 $2,150,000 Direct material costs 1,650,000 Direct manufacturing labor costs Manufacturing overhead costs 1,700,000 3,060,000 3,217,500 1. Compute the actual and budgeted manufacturing overhead rates for 2017. 2 During March, the job-cost record for Job 626 contained the following information: Direct materials used Direct manufacturing labor costs $55,000 $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costin Why is there no under- or overallocated manufacturing overhead under actual costing?

4-22 Actual costing, normal costing, accounting for manufacturing overhead. Dakota job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manu- facturing labor costs. Dakota provides the following information: uses a Budget for 2017 $2,250,000 Actual Results for 2017 $2,150,000 Direct material costs 1,650,000 Direct manufacturing labor costs Manufacturing overhead costs 1,700,000 3,060,000 3,217,500 1. Compute the actual and budgeted manufacturing overhead rates for 2017. 2 During March, the job-cost record for Job 626 contained the following information: Direct materials used Direct manufacturing labor costs $55,000 $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costin Why is there no under- or overallocated manufacturing overhead under actual costing?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 36E: Job-Order Costing versus Process Costing a. Hospital services b. Custom cabinet making c. Toy...

See similar textbooks

Similar questions

This list contains costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH).t Classify each of these items as direct materials, direct labor, or overhead. Glue used to attach labels to bottles containing a patented medicine. Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments. Insurance on a factory building and equipment. A production department supervisors salary. Rent on factory machinery. Iron ore in a steel mill. Oil, gasoline, and grease for forklift trucks in a manufacturing companys warehouse. Services of painters in building construction. Cutting oils used in machining operations. Cost of paper towels in a factory employees washroom. Payroll taxes and fringe benefits related to direct labor. The plant electricians salaries. Crude oil to an oil refinery. Copy editors salary in a book publishing company. Assume your classifications could be challenged in a court case. Indicate to your attorneys which of your answers for part a might be successfully disputed by the opposing attorneys and why. In which answers are you completely confident?
Each of the following cost items pertains to one of these companies: Home Depot (a merchandising-sector company), Apple (a manufacturing-sector company), and Rent a Nanny (a service-sector company): LOADING... (Click the icon to view the cost items.) Read the requirements LOADING... . Requirement 1. Distinguish between manufacturing-, merchandising-, and service- companies. ▼ Manufacturing-sector Merchandising-sector Service-sector companies provide services or intangible products to their customers—for example, legal advice or audits. ▼ Manufacturing-sector Merchandising-sector Service-sector companies purchase materials and components and convert them into different finished goods. ▼ Manufacturing-sector Merchandising-sector Service-sector companies purchase and then sell tangible products without changing their basic form. Requirement 2. Distinguish between inventoriable costs and period costs. Select whether each…
Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item Predicting Cost Behavior Preparing Financial Statements 1.Hamburger buns in a Wendy’s restaurant. 2.Advertising by a dental office. 3.Apples processed and canned by Del Monte. 4.Shipping canned apples from a Del Monte plant to customers. 5.Insurance on a Bausch & Lomb factory producing contact lenses. 6.Insurance on IBM’s corporate headquarters. 7.Salary of a supervisor overseeing production of printers at Hewlett-Packard. 8.Commissions paid to automobile salespersons. 9.Depreciation of factory lunchroom facilities at a General Electric plant. 10.Steering wheels installed in BMWs.
For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:a. Cost of information technology support for the corporate headquartersb. Depreciation on sewing machinesc. Fabric used during productiond. Depreciation on office equipmente. Advertising expensesf. Repairs and maintenance costs for sewing machinesg. Salary of production quality control supervisorh. Utility costs for office buildingi. Sales commissionsj. Salaries of distribution center personnelk. Wages of sewing machine operatorsl. Factory janitorial suppliesm. Chief financial officer’s salaryn. Travel costs of media relations employeeso. Factory supervisors’ salariesp. Oil used to lubricate sewing machinesq. Property taxes on factory building and equipment
In a manufacturing company, overhead allocations are made for three reasons: (1) to determine the full cost of a product; (2) to encourage efficient resource usage; and (3) to compare alternative courses of action for management purposes. 1. Why must overhead be considered a product cost under generally accepted accounting principles? 2. Ayam Company makes plastic dog carriers. The manufacturing process is highly automated and the machine time needed to make any size crate is approximately the same. Ayam’s management decides to begin producing plastic lawn furniture and, to do so, two additional pieces of automated equipment are acquired. Annual depreciation on the new pieces of equipment is P38,000. Should the new overhead cost be allocated over all products manufactured by Ayam? Explain.
The following figure depicts the complete system that Office Inc. uses to estimate the total cost of each office desk and office chair that it produces. How many cost pools does Office Inc.'s 2-stage costing system use for Office Chair objects? A. 7 B. 0 C. 6 D. 5 E. 4 F. 2 G. 1 H. 3 I. 8
Question, Feri Corporation makes a single product. A fire resistant commercial filling cabinet that it sells to office furniture distributors. The company has simple ABC system that it use for internal decision making. The company has two overheads departments whose costs are listed below; Manufacturing Over head $ 500,000 Selling & Admin overhead $ 300,000 Total overhead Costs $ 800,000 The company ABC’s system has the following activity cost pools and activity measures; Activity Costs Pool Activity Measures Assembling Units……………………… Number of Units Processing Order ……………………… Number of Orders…
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item.Cost Classificationsa. Variableb. Fixedc. Periodd. Producte. Administrativef. Sellingg. Manufacturingh. Research and developmenti. Direct materialj. Direct labork. Manufacturing overheadCost Items1. Cost of fabric used in T-shirts.2. Wages of shirtmakers.3. Cost of new sign in front of retail T-shirt shop.4. Wages of the employee who repairs the firm’s sewing machines.5. Cost of electricity used in the sewing department.6. Wages of T-shirt designers and painters.7. Wages of sales personnel.8. Depreciation on sewing machines.9. Rent on the building. Part of the building’s first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second…
Which method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations?a. An Elmer’s glue factory.b. A textbook publisher such as McGraw-Hill.c. An Exxon oil refinery.d. A facility that makes Minute Maid frozen orange juice.e. A Scott paper mill.f. A custom home builder.g. A shop that customizes vans.h. A manufacturer of specialty chemicals.i. An auto repair shop.j. A Firestone tire manufacturing plant.k. An advertising agency.l. A law office.
Job-Order Costing versus Process Costinga. Hospital servicesb. Custom cabinet makingc. Toy manufacturingd. Soft-drink bottlinge. Airplane manufacturing (e.g., 767s)f. Personal computer assemblyg. Furniture making (e.g., computer desks sold at discount stores)h. Custom furniture makingi. Dental servicesj. Paper manufacturingk. Nut and bolt manufacturingl. Auto repairm. Architectural servicesn. Landscape design serviceso. Flashlight manufacturingRequired:Identify each of these preceding types of businesses as using either job-order or process costing
Determine whether each of the following companies is best suited for a job order cost system or a process costing system, or both. Explain why a. Delillo Construction Co. b. Dell Computer Co. (the big computer manufacturer in Texas) c. BP Gasoline Refinery d. Buzzeo & Co. CPAs (an accounting firm)
Mayron Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Overhead Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours 2,600 2,400 Mayron is considering switching from Traditional Costing based on labor hours to activity-based costing. 1.Assign total overhead costs to Tables using Traditional Costing 2.Assign total overhead costs to Dining Chairs using Activity Based Costing 3.Assign total overhead costs to Dining Chairs using Traditional Costing.