Financial and Managerial Accounting (Looseleaf) (Custom Package)
6th Edition
ISBN: 9781259754883
Author: Wild
Publisher: MCG
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Chapter 17, Problem 5QS
Computing departmental overhead rates P2
Refer to the information in QS 17-4. What are the company’s departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours?
QS 17-4 Computing Plant wide overhead rates P1
Rafner Manufacturing identified the following budgeted data in its two production departments.
| Assembly | Finishing | |
| $1,200.000 | $600,000 | |
| Direct labor hours……………………………………………… | 12,000 DLH | 20,000 DLH |
| Machine hours………………………………………………….. | 6,000 | 16,000 |
What is the company’s single plant wide overhead rate based on direct labor hours?
What is the company’s single plant wide overhead rate based on machine hours? ( Round your answer to two decimal places.)
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IV. Product Costing Systems
Job Costing
1. Lind Company uses a normal job-order costing system. There are two departments,
Assembly and Finishing, through which most jobs pass. Selected budgeted and actual
data for the past year follow:
Budgeted overhead
Actual overhead
Expected activity (direct
labor hours)
Expected machine hours
Assembly
$330,000
110,000
150,000
Finishing
$1,000,000
520,000
25,000
25,000
125,000
During the year, several jobs were completed. Data pertaining to one such job, Job 330,
follow:
Direct materials
P730,00
Direct labor cost:
Assembly (5,0000 hours @ $12 per hr.)
Finishing (400 hours @ $12 per hr.)
Machine hours used:
$ 60,000
4,800
Assembly
Finishing
Units produced
100
1,200
10,000
Required:
1. Compute the predetermined overhead rate.
2. Using the predetermined rate, compute the per-unit manufacturing cost for Job 330.
(Note: Round the unit cost to the nearest cent.)
3. Recalculate the unit manufacturing cost for Job 330 using departmental overhead
rates. Use…
QS 17-11 (Algo) Computing activity rates for activity-based costing LO P3
A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows.
Activity Cost Driver
Purchase orders.
Budgeted Cost
$ 87,400
97,050
68,550
Budgeted Activity Usage
3,800 purchase orders
4,300 square feet
50 Setups
Activity
Purchasing
Factory services
Setup
Compute an activity rate for each activity. (Round your answers to 2 decimal places.)
Activity
Purchasing
Factory services
Setup
Budgeted Cost
87,400
97,050
68,550
Square feet
Setups
$
$
$
Budgeted Activity Usage
Activity Rate
Chapter 17 Solutions
Financial and Managerial Accounting (Looseleaf) (Custom Package)
Ch. 17 - Prob. 1MCQCh. 17 - Prob. 2MCQCh. 17 - All of the following are examples of batch-level...Ch. 17 - Prob. 4MCQCh. 17 - Prob. 5MCQCh. 17 - Why are overhead costs allocated to products and...Ch. 17 - What are three common methods of assigning...Ch. 17 - Why are direct labor hours and machine hours...Ch. 17 - What are the advantages of using a single plant...Ch. 17 - The usefulness of a single plant wide overhead...
Ch. 17 - What is a cost object?Ch. 17 - Explain why a single plantwide overhead rate can...Ch. 17 - Why are multiple departmental overhead rates more...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQCh. 17 - Prob. 14DQCh. 17 - 15. What are the four activity levels associated...Ch. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 1QSCh. 17 - Prob. 2QSCh. 17 - Plant wide rate method P1 A manufacturer uses...Ch. 17 - Prob. 4QSCh. 17 - Computing departmental overhead rates P2 Refer to...Ch. 17 - QS 17-6 Advantages of plant wide and department...Ch. 17 - Prob. 7QSCh. 17 - Prob. 8QSCh. 17 - Prob. 9QSCh. 17 - Prob. 10QSCh. 17 - Prob. 11QSCh. 17 - Prob. 12QSCh. 17 - Prob. 13QSCh. 17 - Prob. 14QSCh. 17 - Prob. 15QSCh. 17 - Exercise 17-1 Computing Plantwide overhead rates...Ch. 17 - Prob. 2ECh. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Exercise 17-5 Departmental overhead rates P2 Refer...Ch. 17 - Prob. 6ECh. 17 - Prob. 7ECh. 17 - Prob. 8ECh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 11ECh. 17 - Prob. 12ECh. 17 - Prob. 13ECh. 17 - Exerciser 17-14 Activity-based costing P3 A2...Ch. 17 - Prob. 15ECh. 17 - Prob. 16ECh. 17 - Prob. 17ECh. 17 - Prob. 18ECh. 17 - Problem 17-1A Comparing costs using ABC with the...Ch. 17 - Prob. 2PSACh. 17 - Prob. 3PSACh. 17 - Prob. 4PSACh. 17 - Prob. 5PSACh. 17 - Prob. 1PSBCh. 17 - Prob. 2PSBCh. 17 - Prob. 3PSBCh. 17 - Prob. 4PSBCh. 17 - Prob. 5PSBCh. 17 - Prob. 17SPCh. 17 - Prob. 1BTNCh. 17 - Prob. 2BTNCh. 17 - Prob. 3BTNCh. 17 - Prob. 4BTNCh. 17 - Accounting professionals who for private companies...Ch. 17 - Prob. 6BTNCh. 17 - Prob. 7BTNCh. 17 - Visit and observe the processes of three different...Ch. 17 - Prob. 9BTN
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