Calculate the allocation rate for 20x2

Assignment Help Accounting Basics

Reference no: EM13988115

1. Discuss the Treatment of Normal and Abnormal Spoilage under Job Costing.

2. PNG Corporation designs and builds roller coasters for amusement parks. At the end of 20x1, managers estimated overhead costs for 20x2 of $150,000 based on expected production of 5 roller coasters (5 jobs) using 5,000 labor hours each. Actual overhead costs for 20x2 were $170,000. PNG actually designed and built 6 roller coasters (6 jobs) with the following direct labor usage and overhead costs:

Actual Overhead Cost actual Labor Hours

The Big Dipper (job 1) $28,000 3,500

The Ultimate Scream (job 2) 35,000 4,000

Loop Me (job 3) 27,000 5,000

The Screaming Chicken (job 4) 40,000 2,500

You Don't Know Coasters (job 5) 25,000 6,000

Old Faithful (job 6) 15,000 4,500

Assume PNG uses a normal costing system with the number of labor hours as the overhead allocation base.

a. Calculate the allocation rate for 20x2.

b. Calculate the total corporate over- or under applied overhead (specify which) for 20x2.

Reference no: EM13988115

Questions Cloud

Example of multithreading is the user interface : A common example of multithreading is the user interface. By using threads, a user can click a button and get a quick response rather than waiting until the program finishes its current task.

Explain the concept of total safety management : List and describe at least three discipline areas in which a modern safety and health manager might be required to have at least a basic level of competency. What are some common, predictable problems that a safety and health manager might face du..

How you use information to make actual business decisions : Read the article, "Better Living Through...Statistics?" and give an example of how you might use increasing information to make actual business decisions.

Determining the segmentation strategy : BMW's sales slipped during the worldwide recession in 2008 and 2009. Is its segmentation strategy too selective? Why or why not?

Calculate the allocation rate for 20x2 : Discuss the Treatment of Normal and Abnormal Spoilage under Job Costing.

Do you feel that taxes are legal : Do you feel that taxes are "legal?" Explain your answer. Is it acceptable to protest against taxes? If so, how do you legally protest against something you believe in?

Describe the importance of synergy to an effective strategy : Analyze the various Stages of Corporate Development. Describe which Organizational Life Cycle Stage your Strategic Audit firm is currently in. Describe the importance of synergy to an effective strategy

Why is it at least plausible or rationally defensible : Why is it at least plausible or rationally defensible? For the remainder of your response, offer a critique of the article.

Determine the forces that support posts 1 and 2 : Determine the forces that support posts 1 and 2 (separated by 1.4 m) exert on the board when a 60-kg person stands on the end of the board 2.8 m from support post 2. Use positive values for the upward forces and negative values for the downward fo..

User Account

All Pages