Concept explainers
1.
Concept introduction:
Predetermined overhead allocation:
Predetermined overhead allocation is a method of allocation of overhead costs to the product units. Under this method, the overhead costs are allocated to the product units using the allocation base. The allocation base is identified based on the type of production activities.
To calculate: The amount of overhead cost assigned to the job.
2.
Concept introduction:
Predetermined overhead allocation:
Predetermined overhead allocation is a method of allocation of overhead costs to the product units. Under this method, the overhead costs are allocated to the product units using the allocation base. The allocation base is identified based on the type of production activities.
To calculate: The unit product cost for the job.
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MANAGERIAL ACCOUNTING F/MGRS.
- Determining job costcalculation of predetermined rate for applying overhead by direct labor cost and direct labor hour methods Beemer Products Inc. has its factory divided into three departments, with individual factory overhead rates for each department. In each department, all the operations are sufficiently alike for the department to be regarded as a cost center. The estimated monthly factory overhead for the departments is as follows: Forming, 64,000; Shaping, 36,000; and Finishing, 10,080. The estimated production data include the following: The job cost ledger shows the following data for X6, which was completed during the month: Required: Determine the cost of X6. Assume that the factory overhead is applied to production orders, based on the following: 1. Direct labor cost 2. Direct labor hours (Hint: You must first determine overhead rates for each department, rounding rates to the nearest cent.)arrow_forwardk ces Mickley Company's plantwide predetermined overhead rate is $24.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor $ 210 $55 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 50 units, what is its unit product cost? Note: Round your answer to 2 decimal places. 1. Total manufacturing cost 2. Unit product cost per unitarrow_forwardAssume the job cost sheet for Job X shows that (1) It used 18 direct labor-hours and Incurred direct materials and direct labor charges of $500 and $360, and (2) its unit product cost is $27.35. If Job X contained 40 units, then what is the plantwide predetermined overhead rate per direct labor-hour? Multiple Cholce $47.78 $60.78 $15.00 $13.00arrow_forward
- #3 Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials. Direct labor-hours Direct labor wage rate Machine-hours Multiple Choice O $3.373 The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: $5,207 $2,450 $6,047 S 71 labor-hours. 13 per labor-hour 131 machine-hoursarrow_forwardCLEAR MY CHOICE A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 300,000 hours. The estimated variable overhead is $10 per hour and the estimated fixed overhead costs are $500,000. The predetermined overhead rate is: O a. $7 O b. $16.67 O c. $11.67 Od. $1.67 Oe. None of the answers given NEXT PAGE hparrow_forwardA company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $30,000? O $6.000 O $25.000 O $36,000 O $187.500 O $360.000 Question 10 O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $1,100,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate? O 4.55% O 45.45% O 220% O 227% O 2,200% Question 11arrow_forward
- Σ FL Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for th current year on the following data: Total machine-hours 000 08 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- 00020 2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job Total machine-hours 000 The predetermined overhead rate is closest to: Muluple Cholce $8.10 per machine-hour $210 per machine-hour $3.90 per machine-hour wwwarrow_forwardnces ? Mc Graw Mill Mickley Company's plantwide predetermined overhead rate is $19.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 30 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost @ f2 2 # # 3 (14 $ 250 $ 65 $ 4 per unit (140 % 5 Q Search f6 J- 6 f7 & fa 7 ty DDI O 2F#/activity/que f12arrow_forwardDirect materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 25,000 $ 30,600 Molding 2,500 $ 13,000 $ 2.60 2,900 1,800 4,700 5. What is the total manufacturing cost assigned to Job Q? Note: Do not round intermediate calculations. Total manufacturing cost Job Q $ 14,000 $ 12,300 Fabrication 1,500 $ 16,800 $ 3.40 2,000 2,100 4,100 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 4,000 $ 29,800 Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation…arrow_forward
- A company’s individual job sheets show these costs:Overhead is applied at 1.25 times the direct labor cost. Use the data on the cost sheets to apply overhead to each of the jobs. Round to the nearest whole dollar, no decimal places.Job cost data Job 131Job 132Job 133TotalDirect materials$4,585$8,723$1,575$ Direct labor2,3852,4982,874 Overhead Total$ $ $ $ help with filling in all the empty boxes, pleasearrow_forwardXYZ Company provided the following information regarding Product XY: Direct material costs OMR3 unit of product; Direct labor costs OMR5 per direct labor hour, Predetermined overhead rate OMR10 per direct per labor hour. The cost of a job for 550 units of product XY, which uses a total of 150 direct labor hours, is: Select one: O a. OMR4,050 O b. OMR3,900 O c. OMR9,900 O d. None of the answers given O e. OMR5,900arrow_forwardR nces A company estimates the following manufacturing costs at the beginning of the period: direct labor, $508,000; direct materials, $184,000; and factory overhead, $118,000. Mc Graw Hill stop Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its predetermined overhead rate as a percent of direct materials. 2 Complete this question by entering your answers in the tabs below. S Required 1 Required 2 Compute its predetermined overhead rate as a percent of direct labor. W X Numerator: 11 243 # 3 E (4 101 C $ 4 R 1 1 DE 1 Overhead Rate % 5 Denominator: 4 11 ) O O L P { + [ 4 3 DAarrow_forward
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