MANAG ACCT F/..(LL)+CONNECT W/PROCTORIO+
MANAG ACCT F/..(LL)+CONNECT W/PROCTORIO+
5th Edition
ISBN: 9781266018183
Author: Noreen
Publisher: MCG
Question
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Chapter 5, Problem 1TF15

1.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Plant wide overhead rate.

1.

Expert Solution
Check Mark

Answer to Problem 1TF15

Plant wide overhead rate is $57 per direct labor hour

Explanation of Solution

Plant wide overhead rate

  Plant wide overhead rate=TotaloverheadcostNumberofdirectdirectlaborhour=$684,00012,000=$57

Plant wide overhead rate is $57 per direct labor hour

2.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Overhead rate allocated to product Y is $456000 and product Z is $228000.

2.

Expert Solution
Check Mark

Answer to Problem 1TF15

Overhead rate allocated to product Y is $456000 and product Z is $228000.

Explanation of Solution

  1. Overhead rate :
  2.   overheadallocatedtoproductY=Plant wide overhead rate×numberofdirectlaborhour=$57×8000hours=$456000

    Overhead rate allocated to product Y is $456000.

      overheadallocatedtoproductZ=Plant wide overhead rate×numberofdirectlaborhour=$57×4000hours=$228000

    Overhead rate allocated to product Z is $228000.

3.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Activity rate for the machine activity

3.

Expert Solution
Check Mark

Answer to Problem 1TF15

Activity rate for the machine activity is $20 per machine hour

Explanation of Solution

Activity rate for the machine activity

  Activity rate for the machine activity=Overheadcostforthemachineactivitynumberofmachinehours=$200,00010,000=$20permachinehour

Activity rate for the machine activity is $20 per machine hour

4.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Activity rate for the machine activity per set up

4.

Expert Solution
Check Mark

Answer to Problem 1TF15

Activity rate for the machine activity is $500 per set up

Explanation of Solution

Activity rate for the machine set up activity

  Activity rate for the machine set up activity=Overheadcostforthemachinesetupactivitynumberofsetup=$100,000200=$500persetup

Activity rate for the machine activity is $500 per set up

5.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Activity rate for the machine activity per product

5.

Expert Solution
Check Mark

Answer to Problem 1TF15

Activity rate for the machine activity is $500 per product

Explanation of Solution

Activity rate for the product design activity

  Activity rate for productdesign activity=Overheadcostforproductdesignactivitynumberofproduct=$840,0002=$42000perproduct

Activity rate for the machine activity is $500 per product

6.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Activity rate for the machine activity per labor hour

6.

Expert Solution
Check Mark

Answer to Problem 1TF15

Activity rate for the machine activity is $25 per labor hour

Explanation of Solution

Activity rate for general factory activity

  Activity rate for generalfactory activity=Overheadcostforgeneralfactoryactivitynumberofdirectlabor=$300,00012000=$25perlaborhour

Activity rate for the machine activity is $25 per labor hour

7.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

Machine set up activity consider the activity as per the batch the machine set.

7.

Expert Solution
Check Mark

Answer to Problem 1TF15

Machine set up activity consider the activity as per the batch the machine set

Explanation of Solution

Machine set up activity consider the activity as per the batch the machine set activity which change from batch-to-batch is considered as the batch level activity.

8.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

Product design activity is the products level activity

8.

Expert Solution
Check Mark

Answer to Problem 1TF15

Product design activity is the products level activity because it is based on the number of the product manufactured.

Explanation of Solution

Product design activity is the products level activity because it is based on the number of the product manufactured. The product designed activity which is based on the number of product is considered as the product level activity.

9.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Total overhead cost to be assigned to product Y

9.

Expert Solution
Check Mark

Answer to Problem 1TF15

Total overhead cost to be assigned to product Y is 407,000

Explanation of Solution

Manufacturing overhead cost to be assigned to the product Y using ABC system:

    ActivityRate $MeasureOverhead cost assigned $
    Machining207000140,000
    Machine set ups5005025,000
    Product designs 42000142,000
    General factory258000200,000
    Total overhead cost to be assigned to product Y 407,000

Total overhead cost to be assigned to product Y is 407,000

10.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Total overhead cost to be assigned to product Z

10.

Expert Solution
Check Mark

Answer to Problem 1TF15

Total overhead cost to be assigned to product Z is 277,000

Explanation of Solution

Manufacturing overhead cost to be assigned to the product Z using ABC system:

    ActivityRate $MeasureOverhead cost assigned $
    Machining20300060,000
    Machine set ups50015075,000
    Product designs 42000142,000
    General factory254000100,000
    Total overhead cost to be assigned to product Z277,000

Total overhead cost to be assigned to product Z is 277,000

11.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Percentage of the total overhead cost allocated for product Y and Z

11.

Expert Solution
Check Mark

Answer to Problem 1TF15

Percentage of the total overhead cost allocated for product is 66.67% and Z is 33.33%.

Explanation of Solution

The percentage of the total overhead cost allocated to product Y and Z as show below:

    ParticularProduct YProduct Z
    a.Overhead allocated to each department $456000228000
    b.Total overhead cost68400068400
    abPercentage of the total overhead cost allocated 66.67%33.33%

Percentage of the total overhead cost allocated for product is 66.67% and Z is 33.33%.

12.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Percentage of the machine cost allocated for both product

12.

Expert Solution
Check Mark

Answer to Problem 1TF15

Percentage of the machine cost allocated for product is 70% and Z is 30%.

Explanation of Solution

The percentage of machine cost allocated to product Y and Z as show below:

    ParticularProduct YProduct Z
    a.Overhead allocated to each department $14000060,000
    b.Total overhead cost200,000200,000
    abPercentage of the total overhead cost allocated 70%30.%

Percentage of the machine cost allocated for product is 70% and Z is 30%.

13.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Percentage of the total overhead machine setup cost allocated for product Y and Z.

13.

Expert Solution
Check Mark

Answer to Problem 1TF15

Percentage of the total overhead machine setup cost allocated for product is 25% and Z is 75%.

Explanation of Solution

The percentage of the machine setup cost allocated to product Y and Z as show below:

    ParticularProduct YProduct Z
    a.Overhead allocated to each department $25000075,000
    b.Total overhead cost100,000100,000
    abPercentage of the total overhead cost allocated 25%75.%

Percentage of the total overhead machine setup cost allocated for product is 25% and Z is 75%.

14.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Percentage of the total overhead product design cost allocated for product Y and Z

14.

Expert Solution
Check Mark

Answer to Problem 1TF15

Percentage of the total overhead product design cost allocated for product is 25% and Z is 75%.

Explanation of Solution

The percentage of product design cost allocated to product Y and Z as show below:

    ParticularProduct YProduct Z
    a.Overhead allocated to each department $42000042,000
    b.Total overhead cost84,00084,000
    abPercentage of the total overhead cost allocated 50%50%

Percentage of the total overhead product design cost allocated for product is 25% and Z is 75%.

15.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Percentage of the total overhead product design cost allocated for product is Y and Z.

15.

Expert Solution
Check Mark

Answer to Problem 1TF15

Percentage of the total overhead product design cost allocated for product is 66.67% and Z is 33.33%.

Explanation of Solution

The percentage of general factory cost allocated to product Y and Z as show below:

    ParticularProduct YProduct Z
    a.Overhead allocated to each department $200,000100,000
    b.Total overhead cost300,000300,000
    abPercentage of the total overhead cost allocated 66.67%33.33%

Percentage of the total overhead product design cost allocated for product is 66.67% and Z is 33.33%.

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