Fundamental Accounting Principles -Hardcover
22nd Edition
ISBN: 9780077862275
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 19, Problem 18E
Exercise 19-18
A1
Hansel Corporation has requested bids from several architects to design its new corporate headquarters. Frey Architects is one of the firms bidding on the job. Frey estimates that the job will require the Mowing direct labor.
Frey apples overhead to jobs at 175% of direct labor cost, Frey would like to earn at least $80,000 profit on the architectural job. Based on past experience and
1. What is Frey;s estimated cost of the architectural job?
2. What bid would you suggest that Frey submit?
Check (1) $213,125
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Question No.4
The Jewell plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:
Maintenance Rs.360,000
Inspection 750,000
The plant currently applies overhead using direct labor hours and expected capacity of 100,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job. Bid prices are calculated as full manufacturing cost plus a 20% mark-up.
Direct materials Rs.2,100
Direct labor 5,625
Machine hours 450
Number of inspections 4
Direct labor hours 550
Total expected machine hours for all jobs during the year are 60,000, and the total expected number of inspections is 4,000.
Required:
A: Compute the total cost of the potential job using direct labor hours to assign overhead.
Determine the bid price for the potential job.
B: Compute the total cost of the job using…
Review Question 1Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs.Pyramid Company expects to incur $3,000,000 in manufacturing overhead costs this year. During theyear, it expects to use 40,000 direct labor hours at a cost of $600,000 and 80,000 machine hours.Required:a. Prepare a predetermined overhead rate based on direct labor hours, direct labor cost, andmachine hours.b. Why might Pyramid Company prefer to use machine hours to allocate manufacturing overhead?c. Using each of the predetermined overhead rates calculated in part a and the data that follows forjob 128, determine the cost of job128.Direct materials $6,000Direct labor $4,000 (200 hours at $15 per hour) + (100 hours at $10 per hour)Machine time 700 hours
JOB COSTING II
GLOBAL CAMPUS
Discussion Question
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct
labor hours. At the beginning of 2023, they estimated total manufacturing overhead costs at
$2,352,000, and they estimated total direct labor hours at 7,000.
The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost.
Distribution cost should be added to each job according to quotes from outside carriage companies.
The company wishes to quote for job # 222. Job stats are as follows:
Direct materials cost
Direct labour cost
Direct labour hours
$173,250
$240,000
500 hours
Special Design Cost
Distribution quote from haulage company
Units of product produced
$8,750
$21,700
400 cartons
a) Compute Miguel's Manufacturing Company predetermined manufacturing overhead rate for
2023.
b) How much manufacturing overhead was allocated to Job #222?
c) Calculate the total cost & quotation price of Job #222, given that a…
Chapter 19 Solutions
Fundamental Accounting Principles -Hardcover
Ch. 19 - Prob. 1DQCh. 19 - Prob. 2DQCh. 19 - Prob. 3DQCh. 19 - Prob. 4DQCh. 19 - Prob. 5DQCh. 19 - Prob. 6DQCh. 19 - Prob. 7DQCh. 19 - Prob. 8DQCh. 19 - Prob. 9DQCh. 19 - Prob. 10DQ
Ch. 19 - Prob. 11DQCh. 19 - Prob. 12DQCh. 19 - Prob. 13DQCh. 19 - Prob. 14DQCh. 19 - Prob. 1QSCh. 19 - Prob. 2QSCh. 19 - Prob. 3QSCh. 19 - Prob. 4QSCh. 19 - Prob. 5QSCh. 19 - Prob. 6QSCh. 19 - Prob. 7QSCh. 19 - Prob. 8QSCh. 19 - Prob. 9QSCh. 19 - Prob. 10QSCh. 19 - Prob. 11QSCh. 19 - Manufacturing cost flows P1 P2 P3 Refer to the...Ch. 19 - Prob. 13QSCh. 19 - Prob. 14QSCh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Prob. 14ECh. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 17ECh. 19 - Exercise 19-18 Job order costing for services A1...Ch. 19 - A recent balance sheet for Porsche AG shows...Ch. 19 - Problem 19-1A
Production costs computed and...Ch. 19 - Prob. 2APSACh. 19 - Prob. 3APSACh. 19 - Prob. 4APSACh. 19 - Prob. 5APSACh. 19 - Prob. 1BPSBCh. 19 - Prob. 2BPSBCh. 19 - Problem 19-3B
Source documents, journal entries,...Ch. 19 - Prob. 4BPSBCh. 19 - Prob. 5BPSBCh. 19 - The computer workstation furniture manufacturing...Ch. 19 - Prob. 1GLPCh. 19 - Prob. 1BTNCh. 19 - Prob. 2BTNCh. 19 - Prob. 3BTNCh. 19 - Prob. 4BTNCh. 19 - Prob. 5BTNCh. 19 - Prob. 6BTNCh. 19 - Prob. 7BTNCh. 19 - Prob. 8BTNCh. 19 - Apple and Samsung are competitors in the global...
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