Homework Help is Here – Start Your Trial Now!
Business
Accounting
Activity 1 Stoll Manufacturing, Inc. uses a job order costing system. The company uses predetermined overhead rates in applying manufacturing overhead to individual jobs. The predetermined overhead rate in Department X is based on direct labor hours, the rate in Department Y is based on machine hours, and the rate in Department Z is based on direct labor cost. At the beginning of the most recent year, members of Stoll's management team made the following estimates for the year: 80,000 50,000 $400,000 $200,000 $560,000 Department Y 26,000 85,000 $150,000 $. 26.000 $340,000 60,000 23,000 $800,000 $ 42,000 $240,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead a. Compute the predetermined overhead rates for Departments X, Y, and Z. b. Stoll Manufacturing's records show the following information for Job #6854, which was entered into production on January 17 and completed on March 7. Department Y 54 Direct labor hours Machine hours Direct labor cost Direct materials 375 125 $1,390 $2,065 420 200 $2,400 $ 842 120 $1,080 $1,260 Compute the total manufacturing overhead applied to Job #6854. c. On December 31, Stoll showed the following actual costs and operating data for all jobs worked on during the year: 76,000 54,000 $395,200 $215,900 $540,000 Department Y 28,920 87,200 $138,000 $.24.380 $345,000 Z. 63,000 21,000 $815,000 $ 39,080 $254,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead Compute the amount of under- or overapplied overhead in each department at the end of the year and indicate whether it is under- or overapplied

Activity 1 Stoll Manufacturing, Inc. uses a job order costing system. The company uses predetermined overhead rates in applying manufacturing overhead to individual jobs. The predetermined overhead rate in Department X is based on direct labor hours, the rate in Department Y is based on machine hours, and the rate in Department Z is based on direct labor cost. At the beginning of the most recent year, members of Stoll's management team made the following estimates for the year: 80,000 50,000 $400,000 $200,000 $560,000 Department Y 26,000 85,000 $150,000 $. 26.000 $340,000 60,000 23,000 $800,000 $ 42,000 $240,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead a. Compute the predetermined overhead rates for Departments X, Y, and Z. b. Stoll Manufacturing's records show the following information for Job #6854, which was entered into production on January 17 and completed on March 7. Department Y 54 Direct labor hours Machine hours Direct labor cost Direct materials 375 125 $1,390 $2,065 420 200 $2,400 $ 842 120 $1,080 $1,260 Compute the total manufacturing overhead applied to Job #6854. c. On December 31, Stoll showed the following actual costs and operating data for all jobs worked on during the year: 76,000 54,000 $395,200 $215,900 $540,000 Department Y 28,920 87,200 $138,000 $.24.380 $345,000 Z. 63,000 21,000 $815,000 $ 39,080 $254,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead Compute the amount of under- or overapplied overhead in each department at the end of the year and indicate whether it is under- or overapplied

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
See similar textbooks
icon
Related questions
Question
100%

Please help me with Activity 1.

4G 4G 21:49 47 7 - Activities -.. Activity 1 Stoll Manufacturing, Inc. uses a job order costing system. The company uses predetermined overhead rates in applying manufacturing overhead to individual jobs. The predetermined overhead rate in Department X is based on direct labor hours, the rate in Department Y is based on machine hours, and the rate in Department Z is based on direct labor cost. At the beginning of the most recent year, members of Stoll's management team made the following estimates for the year. 80,000 50,000 $400,000 $200,000 $560,000 Department Y 26,000 85,000 $150,000 $.26.000 $340,000 60,000 23,000 $800,000 $ 42,000 $240,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead a. Compute the predetermined overhead rates for Departments X, Y, and Z. b. Stoll Manufacturing's records show the following information for Job #6854, which was entered into production on January 17 and completed on March 7. Department Y Direct labor hours 420 54 375 125 $1,390 $2,065 Machine hours Direct labor cost 200 120 $2,400 $ 842 $1,080 $1,260 Direct materials Compute the total manufacturing overhead applied to Job #6854. c. On December 31, Stoll showed the following actual costs and operating data for all jobs worked on during the year: 76,000 54,000 $395,200 $215,900 $540,000 Department Y 28,920 87,200 $138,000 $.24.380 $345,000 Z. 63,000 21,000 $815,000 $ 39,080 $254,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead Compute the amount of under- or oyerapplied overhead in each department at the end of the year and indicate whether it is under- or overapplied. 1 |Page Activity 2 Mr. J. G. Pigg, IIl is the sole owner of a brick company that manufactures custom bricks used in upscale homes. No two customers have the same type of bricks. The bricks go through three processes: mixing, shaping, and firing. The company uses a job order cost system and computes a predetermined overhead rate in each department. The mixing department bases its rate on direct materials, the shaping department bases its rate on machine hours, and the firing department bases its rate on direct labor hours. At the beginning of the year, the company made the following estimates:
Transcribed Image Text:4G 4G 21:49 47 7 - Activities -.. Activity 1 Stoll Manufacturing, Inc. uses a job order costing system. The company uses predetermined overhead rates in applying manufacturing overhead to individual jobs. The predetermined overhead rate in Department X is based on direct labor hours, the rate in Department Y is based on machine hours, and the rate in Department Z is based on direct labor cost. At the beginning of the most recent year, members of Stoll's management team made the following estimates for the year. 80,000 50,000 $400,000 $200,000 $560,000 Department Y 26,000 85,000 $150,000 $.26.000 $340,000 60,000 23,000 $800,000 $ 42,000 $240,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead a. Compute the predetermined overhead rates for Departments X, Y, and Z. b. Stoll Manufacturing's records show the following information for Job #6854, which was entered into production on January 17 and completed on March 7. Department Y Direct labor hours 420 54 375 125 $1,390 $2,065 Machine hours Direct labor cost 200 120 $2,400 $ 842 $1,080 $1,260 Direct materials Compute the total manufacturing overhead applied to Job #6854. c. On December 31, Stoll showed the following actual costs and operating data for all jobs worked on during the year: 76,000 54,000 $395,200 $215,900 $540,000 Department Y 28,920 87,200 $138,000 $.24.380 $345,000 Z. 63,000 21,000 $815,000 $ 39,080 $254,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead Compute the amount of under- or oyerapplied overhead in each department at the end of the year and indicate whether it is under- or overapplied. 1 |Page Activity 2 Mr. J. G. Pigg, IIl is the sole owner of a brick company that manufactures custom bricks used in upscale homes. No two customers have the same type of bricks. The bricks go through three processes: mixing, shaping, and firing. The company uses a job order cost system and computes a predetermined overhead rate in each department. The mixing department bases its rate on direct materials, the shaping department bases its rate on machine hours, and the firing department bases its rate on direct labor hours. At the beginning of the year, the company made the following estimates:
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS