REQUIRED: (a) If RBSB uses a plantwide overhead rate:(i) Calculate the predetermined overhead rate for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (b) If RBSB uses departmental overhead rate:(i) Calculate the predetermined overhead rate for each department for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (c) Between the plantwide rate in part (a) (ii) and the departmental rate in part (b) (ii) above, which manufacturing overhead rate would you recommend to be applied for Job 120? Justify your answer. voutReferencesReviewViewSectionToolsQ Click to find commandsA- 2l 5- 9 AaBbCcI A aB]AaBb(AaBb(AaBbCk E- - E -NormalHeading 1Heading 2 Heading 3Heading 4-QUESTION 1Rally Baling Sdn Bhd (RBSB) makes custom made kitchen cabinet. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost tojobs. Currently, RBSB uses a plantwide overhead rate based on direct labor costs in estimatingthe company manufacturing overhead. The following estimated data have been made by RBSBat the beginning of the year 2020:DepartmentMoulding10,000CostsAssembling40,00010,000RM80,000RM165,000RM220,000Finishing8,000Direct labor hoursMachine hours50,00010,000RM50,000Direct labor costsRM50,000Direct materials costsRM120,000RM70,000RM20,000Manufacturing overhead costsRM180,000Job No. 120 was started on 1 January 2020 and completed on 31 January 2020. This job wasordered by Wan Kemara School in Changlun, Kedah. RBSB's cost records shown the followinginformation on the Job No. 120:DepartmentAssembling700Finishing800CostsMoulding200Direct labor hoursMachine hours1001,2001,000Direct labor costsRM2,000RM12,500RM5,000Direct materials costsRM5,000RM4,000RM16,000RM22,000RM2,500RM12,000Manufacturing overhead costsRecently, you as the plant manager have heard that departmental overhead rates can offersignificantly better cost assignments than a plantwide rate can offer. In implementing this newoverhead rate base, the predetermined overhead rate in the Moulding Department will be basedon direct labor hours; Assembling Department will be based on machine hours; and the rate inthe Finishing Department will be based on direct labor costs.REQUIRED:(a) IFRBSB uses a plantwide overhead rate:(i)Calculate the predetermined overhead rate for the year 2020.(ii) Determine the total of manufacturing overhead cost applied to Job 120.2.126M Spell Check

Activity-Based Costing (ABC) is a two-stage costing system in which overhead costs are allocated to…

(a) If RBSB uses a plantwide overhead rate: (i) Calculate the predetermined overhead rate for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (b) If RBSB uses departmental overhead rate: (i) Calculate the predetermined overhead rate for each department for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (c) Between the plantwide rate in part (a) (ii) and the departmental rate in part (b) (ii) above, which manufacturing overhead rate would you recommend to be applied for Job 120? Justify your answer.

(a) If RBSB uses a plantwide overhead rate: (i) Calculate the predetermined overhead rate for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (b) If RBSB uses departmental overhead rate: (i) Calculate the predetermined overhead rate for each department for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (c) Between the plantwide rate in part (a) (ii) and the departmental rate in part (b) (ii) above, which manufacturing overhead rate would you recommend to be applied for Job 120? Justify your answer.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter19: Job Order Costing

Section: Chapter Questions

Problem 19.4APR: Analyzing manufacturing cost accounts Fire Rock Company manufactures Designer paddle boards in a...

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QUESTION 1C (TOPIC 3) North Network Sdn Bhd (NNSB) makes custom made furniture from quality woods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. Currently, NNSB uses a plantwide overhead rate based on direct labor costs in estimating the company manufacturing overhead. The following estimated data have been made by NNSB at the beginning of the year 2018: Department Costs Designing Machining Furnishing Direct labor hours 30,000 60,000 40,000 Machine hours 20,000 40,000 30,000 Direct labor costs RM150,000 RM100,000 RM200,000 Direct materials costs RM190,000 RM400,000 RM250,000 Manufacturing overhead costs RM270,000 RM400,000 RM50,000 Job 118 was started on 1 January 2018 and completed on 28 February 2018. NNSB’s cost records shown the following information on the Job 118: Department Costs Designing Machining…
Question#6 For each item, identify all applicable cost labels. Use the following code in your answer:1 — Product Cost2 — Period Costa. Advertising _______b. Direct materials used _______c. Sales salaries _______d. Indirect factory labor _______e. Repairs to office equipment _______f. Factory manager's salary _______g. Direct labor _______h. Indirect materials _______
C15Q5 Need help Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. 2. Using the direct method, rework requirement 1. 3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Direct Manufacturing Labor–Hours Machining Assembly Job 88 23 2 Job 89 5 22 4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements…
Question No.4 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…
Analyzing manufacturing cost accounts Fire Rock Company manufactures Designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June: In addition, the following information is available: a . Materials and direct labor were applied to the following jobs in June: b. factory overhead is applied to each job at a rate of 140% of direct labor cost c. The June 1 Work in Process balance consisted of two job as follows: Job No. Style Work In Process, June 1 201 T100 16,500 202 T200 44,000 Total 60,500 d. Customer jobs completed and units sold in June were as follows: Instructions 1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings: 2. Determine the June 50 balances for each of the inventory accounts and factor overhead.
Required information Problem 03-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: BeginningInventory EndingInventory Work in process inventory—Cutting 73,500 75,500 Work in process inventory—Stitching 93,300 69,800 Finished goods inventory 26,100 14,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 40,000 Direct materials used—Cutting 22,500 Direct materials used—Stitching 0 Direct labor Direct labor—Cutting $ 17,100 Direct labor—Stitching…
Check my workCheck My Work button is now enabled Item 3 Logan Products has two production departments—assembly and finishing. These are supported by two service departments—sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Operations Assembly Finishing Sourcing - 20,000 40,000 60,000 Operations 10,000 - 60,000 50,000 The costs incurred in the plant are as follows: Departments Departmental Costs Sourcing $ 174,000 Operations 220,000 Assembly 416,000 Finishing 261,000 Total $ 1,071,000 Required: Use four decimal places (e.g., 33.3333%) in your calculation of percentages. 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when…
eBookHintReferences Item2 Exercise 2-8 (Algo) Applying Overhead Cost; Computing Unit Product Cost [LO2-2, LO2-3] Newhard Company assigns overhead cost to jobs on the basis of 114% of direct labor cost. The job cost sheet for Job 313 includes $9,602 in direct materials cost and $10,700 in direct labor cost. A total of 1,250 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313? b. What is the unit product cost for Job 313? Brewer 9e Rechecks 2021-09-29
eBook Question Content Area Balance of Work in Process and Finished Goods, Cost of Goods Sold Derry Company uses job-order costing. At the end of the month, the following information was gathered: Job # Total Cost Complete? Sold? 301 $1,600 Yes No 302 1,240 Yes Yes 303 780 No No 304 2,300 Yes No 305 4,150 Yes No 306 350 No No 307 710 Yes Yes 308 620 No No 309 1,200 No No 310 515 No No The beginning balance of Finished Goods was $300, consisting of Job 300, which was not sold by the end of the month. Required: 1. Calculate the balance in Work in Process at the end of the month.$fill in the blank 1 2. Calculate the balance in Finished Goods at the end of the month.$fill in the blank 2 3. Calculate Cost of Goods Sold for the month.
A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Chapter 7: Applying Excel Data Manufacturing overhead $500,000 Selling and administrative overhead $300,000 Assembling Units Processing Orders Supporting Customers Other Manufacturing overhead 50% 35% 5% 10% Selling and administrative overhead 10% 25% 45% 20% Total activity 1,000 250 100 units orders customers OfficeMart orders: Customers 1 customer Orders 6 orders Number of filing cabinets ordered in total 80 units Selling price $595 Direct materials $180 Direct labor $50 a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (b) Based on new number of orders in Requirement 2, what is the product margin under the traditional costing system when the data are corrected?…
Question 3 Part I Advent Corporation has implemented an Activity Based Costing System. The company wants to useABC on its two main products, V1 and V2, and three main activities as follows:ActivityCost Driver Overhead Amount Total Driver VolumeIssuing Purchase Orders # of Purchase Orders $ 150,000 50,000Reviewing Receiving Reports # of Receiving Reports $ 175,000 20,000Making Phone Calls # of Phone Calls $ 450,000 100,000During the year:Product V1 required 150 purchase orders; 150 receiving reports; and 200 phone calls.Product V2 required100 purchase orders; 400 receiving reports; and 350 phone calls. Required:a. Compute the pre-determined overhead rate for each cost pool. b. Compute the total manufacturing overhead cost for Product V1 and Product V2.
1. ABC company services office computer and equipment. Some customers bring their computers to the company'sservice shop; other customers prefer to have the company's service personnel come to their offices to repair theircomputers. What is the most appropriate costing method for ABC company?A. An activity-based costing systemB. A process costing systemC. A job-order costing systemD. An operation costing system 2. The debits in work-in-process are beginning work-in-process, direct labor, direct materials, and factory overhead.Assuming there are minimal items already completed, the account should be credited for production that iscompleted and sent to finished goods inventory. The balance is:A. Ending work-in-process (Debit)B. Ending work-in-process (Credit)C. ZeroD. Total production costs to be accounted for 3. Companies characterized by the production of heterogenous products will most likely use which of the followingmethods for the purpose of averaging costs and providing…