Job order costing Job order cost system provides a separate record of each particular quantity of product that passes through the factory. Each quantity that is manufactured in the business is known as job. Job order costing is used when the products produced are significantly different from each other. To state: the reason for increase in cost per plaque.

Question

Want to see the full answer?

Answer 1

Question

Chapter 17, Problem 17.16EX

(a)

To determine

Job order costing

Job order cost system provides a separate record of each particular quantity of product that passes through the factory. Each quantity that is manufactured in the business is known as job. Job order costing is used when the products produced are significantly different from each other.

To state: the reason for increase in cost per plaque.

(b)

To determine

To state: the improvements that should RT companies must do.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

ClearView, Inc. provides quarterly commercial window cleaning services for three high-rise commercial buildings, Sequoia, Tower Plaza, and Cornwall, and it uses a job costing system for determining the costs for completing each job. ClearView guarantees its customers' satisfaction and will return to re-clean windows that do not meet the customer's requirements at no additional charge to the customer. The job cost system does not capture any cost incurred by ClearView for return touchups. ClearView cleans each building on a square footage contract price, which includes the initial cleaning as well as all required touchups. Each year, the company generates about one-third of its total revenues and gross profits from each of the three buildings. The ClearView owner has observed that the buildings, however, require substantially different levels of support following the initial completion of jobs. The following data have been gathered: Support Activity Major touchups Minor touchups Driver…

Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour. 2. Determine the amount of applied overhead if 18,600 actual hours are worked in the upcoming year. Required 1 Required 2 Complete this question by entering your answers in the tabs below. $ 341,800 61,500 140,000 211,998 Predetermined Overhead Rate 39,400 33,750 22,500 55,000 19, 200 $925,148 Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour. Note: Round your answer to 2 decimal…

Please I need help answering this problem 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 $30 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 69,600 56,600 Manufacturing overhead costs incurred Indirect labor $ 2,864,000 $ 2,264,000 Employee benefits 1,044,000 849,000 Supplies 696,000 566,000 Power…