Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3] Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials $1,414,000 Direct labor cost $ 2,661,000 Compute the total job cost for this particular film. $ 8,870,000 $5,322,000 $0.16 Complete the question by entering your answers in the tabs given below. Required 1 Required 2

Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3] Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials $1,414,000 Direct labor cost $ 2,661,000 Compute the total job cost for this particular film. $ 8,870,000 $5,322,000 $0.16 Complete the question by entering your answers in the tabs given below. Required 1 Required 2

Name: cesRequired:1. Compute the predetermined overhead rate.2. During the
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: cesRequired:1. Compute the predetermined overhead rate.2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:Direct materials.$ 1,414,000Direct labor cost$ 2,661,000Compute the total job cost for

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 16E: Job order cost accounting for a service company The Fly Company provides advertising services for...

See similar textbooks

Similar questions

Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $378,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account, $285,000. Raw materials used in production (all direct materials), $270,000. Utility bills incurred on account, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities). Accrued salary and wage costs: Direct labor (950 hours) $ 315,000 Indirect labor $ 107,000 Selling and administrative salaries $ 195,000…
Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account, $295,000. Raw materials used in production (all direct materials), $280,000. Utility bills incurred on account, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities). Accrued salary and wage costs: Direct labor (890 hours) $ 325,000 Indirect labor $ 109,000 Selling and administrative salaries $ 205,000…
Problem 3-15 (Algo) Journal Entries; T-Accounts; Financial Statements [LO3-1, LO3-2, LO3-3, LO3-4] Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $388,800 of manufacturing overhead for an estimated allocation base of 810 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account, $295,000. Raw materials used in production (all direct materials), $280,000. Utility bills incurred on account, $78,000 (95% related to factory operations, and the remainder related to selling and administrative activities). Accrued salary and wage costs: Direct labor (890 hours) $ 325,000 Indirect labor $ 109,000 Selling and administrative salaries $ 205,000…
please answer a, b and c O’Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O’Leary uses a normal job costing system. Direct labor at O’Leary is paid $29 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows. Year 1 Year 2 Direct labor-hours worked 69,400 56,400 Manufacturing overhead costs incurred Indirect labor $ 2,856,000 $ 2,256,000 Employee benefits 1,041,000 846,000 Supplies 694,000 564,000 Power 651,000 546,000 Heat and light 142,800 142,800 Supervision 783,210 663,450…
Please Help Solve Section Required D & E O’Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O’Leary uses a normal job costing system. Direct labor at O’Leary is paid $31 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows. Year 1 Year 2 Direct labor-hours worked 69,800 56,800 Manufacturing overhead costs incurred Indirect labor $ 2,872,000 $ 2,272,000 Employee benefits 1,047,000 852,000 Supplies 698,000 568,000 Power 655,000 550,000 Heat and light 143,600 143,600 Supervision 784,370…
please answer d and e O’Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O’Leary uses a normal job costing system. Direct labor at O’Leary is paid $29 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows. Year 1 Year 2 Direct labor-hours worked 69,400 56,400 Manufacturing overhead costs incurred Indirect labor $ 2,856,000 $ 2,256,000 Employee benefits 1,041,000 846,000 Supplies 694,000 564,000 Power 651,000 546,000 Heat and light 142,800 142,800 Supervision 783,210 663,450…
QUESTION THREE An engineering company which uses job costing to attribute costs to individual products and services provided to its customers has began the preparation of its fixed production overhead cost budget for 2017. Cost has been identified as follows: Machining Assembly Finishing Stores Maintenance K’000 K’000 K’000 K’000 K’000 Apportioned cost 6,000 2,500 1,500 1,000 800 The stores and maintenance departments are production department and provide services as follows: Machining Assembly Finishing Stores Maintenance Stores 40% 30% 20% - 10% Maintenance 55% 20% 20% 5% - The number of machine and labour hours budgeted for 2018 is: Machining…
E2-6 (Algo) Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6] Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost. Required:Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.) Case 1 Case 2 Case 3 Direct material used 15,000 9,900 Direct labor 20,000 Manufacturing overhead applied 11,500 Total current manufacturing costs 27,000 31,200 Beginning work in process inventory 9,700 8,400 Ending work in process inventory 4,200…
3. Joven Manufacturing, Inc. uses a job order costing system. The company usespredetermined overhead rates in applying manufacturing overhead to individual jobs. Thepredetermined overhead rate in Department A is based on direct labor hours, the rate inDepartment B is based on machine hours, and the rate in Department C is based on directlabor cost. At the beginning of the most recent year, members of Joven's management teammade the following estimates for the year: Department . A B CDirect labor hours 80,000 26,000 60,000Machine hours 50,000 85,000 23,000Direct labor cost P400,000…
3. Joven Manufacturing, Inc. uses a job order costing system. The company usespredetermined overhead rates in applying manufacturing overhead to individual jobs. Thepredetermined overhead rate in Department A is based on direct labor hours, the rate inDepartment B is based on machine hours, and the rate in Department C is based on directlabor cost. At the beginning of the most recent year, members of Joven's management teammade the following estimates for the year: Department . A B CDirect labor hours 80,000 26,000 60,000Machine hours 50,000 85,000 23,000Direct labor cost P400,000…
3. Joven Manufacturing, Inc. uses a job order costing system. The company usespredetermined overhead rates in applying manufacturing overhead to individual jobs. Thepredetermined overhead rate in Department A is based on direct labor hours, the rate inDepartment B is based on machine hours, and the rate in Department C is based on directlabor cost. At the beginning of the most recent year, members of Joven's management teammade the following estimates for the year: Department . A B CDirect labor hours 80,000 26,000 60,000Machine hours 50,000 85,000 23,000Direct labor cost P400,000…
Required information Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4] Skip to question [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 23,000 32,000 55,000 Fixed manufacturing overhead cost $ 700,000 $ 300,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Molding Fabrication Total Direct materials cost $ 370,000 $ 320,000 $ 690,000 Direct labor cost $ 200,000 $ 140,000 $ 340,000…