The following information relates to a company that has two manufacturing departments. The company used the following databeginning of the period to calculate predetermined overhead rates:Estimated total machine-hours (MHs)Estimated total fixed manufacturing overhead costEstimated variable manufacturing overhead cost per MHDept. X6,000$36,600$ 2.00Dept. Y4,000$24,400$ 4.00Total10,000$61,000During the period, the company started and completed two jobs-Job A and Job B. Data concerning those two jobs followJob B$21,400 $ 8,400$21,600 $8,4003,3003,600Job ADirect materialsDirect lebor costMolding machine-hoursAssembly machine-hours2,700400Required:1. Assume the company uses a plantwide predetemined manufacturing overfead rate based on machine hours.a. Calculate the overhead rate (Round your answer to 2 decimal places.)b. Calculate the amount of manufacturing overhead applied to Job A. (Do not round intermediate calculations.)c. Calculate the total manufacturing cost assigned to Job A (Do not round intermediate calculations.)d. The company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job A.not round intermediate calculations.)2. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in botdepartments2. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in tdepartments.a. Calculate the predetermined overhead rate for the Dept. X. (Round your answer to 2 decimal places.)b. Calculate the departmental predetermined overhead rate for Dept. Y. (Round your answer to 2 decimal places.)c. Calculate the total manufacturing overhead applied to Job A. (Do not round intermediate calculations.)d. The company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Jobnot round intermediate calculations.)1a Plantwide predetermined overhead rate1b Manufacturing overhead applied to Job A1c Total manufacturing cost of Job A1d. Selling price of Job A2a Dept X predetermined overhead rate2b. Dept Y predetermined overhead rate2c Manufacturing overhead applied to Job A2d. Selling price of Job Aper MHper MHper MH 1a Plantwide predetermined overhead rateper MH1b. Manufacturing overhead applied to Job A1c Total manufacturing cost of Job A1d. Selling price of Job A2a Dept. X predetermined overhead rate2b. Dept. Y predetermined overhead rate2c Manufacturing overhead applied to Job A2d. Selling price of Job Aper MHper MH3. Do you recommend the company use a plantwide rate or departmental rates to apply overhead? Why?

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The following information relates to a company that has two manufacturing departments. The company used the following dat. beginning of the period to calculate predetermined overhead rates: Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimsted variable manufacturing overhead cost per MH Dept. x 6,000 $36,600 $ 2.00 Dept. 4,000 $24,400 $ 4.00 Total 10,000 $61,000 During the period, the company started and completed two jobs-Job A and Job B. Data concerning those two jobs follow. Job A Direct materials Direct labor cost Molding machine-hours Assembly machine-hours Job B $21,400 $8,400 $21,600 $8,400 3,300 3,600 2,700 400 Required: 1. Assume the company uses a plantwide predetermined manufacturing overead rate based on machine hours

The following information relates to a company that has two manufacturing departments. The company used the following dat. beginning of the period to calculate predetermined overhead rates: Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimsted variable manufacturing overhead cost per MH Dept. x 6,000 $36,600 $ 2.00 Dept. 4,000 $24,400 $ 4.00 Total 10,000 $61,000 During the period, the company started and completed two jobs-Job A and Job B. Data concerning those two jobs follow. Job A Direct materials Direct labor cost Molding machine-hours Assembly machine-hours Job B $21,400 $8,400 $21,600 $8,400 3,300 3,600 2,700 400 Required: 1. Assume the company uses a plantwide predetermined manufacturing overead rate based on machine hours

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEA: PREDETERMINED FACTORY OVERHEAD RATE Millerlile Enterprises calculates a predetermined factory...

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The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)
Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
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Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
A company has the following information relating to its production costs: Compute the actual and applied overhead using the companys predetermined overhead rate of $23.92 per machine hour. Was the overhead over applied or under applied, and by how much?
Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
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Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
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