Reference no: EM13177424
Allocation and proration of overhead. Tamden, Inc., prints custom marketing materials. The business was started January 1, 2010. The company uses a normal-costing system. It has two direct cost pools, materials and labor and one indirect cost pool, overhead. Overhead is charged to printing jobs on the basis of direct labor cost. The following information is available for 2010
| Budgeted direct labor costs |
$150,000 |
| Budgeted overhead costs |
$180,000 |
| Cost of actual material used |
$126,500 |
| Actual direct labor costs |
$148,750 |
| Actual overhead costs |
$176,000 |
Tamden, Inc., has no finished goods inventories because all printing jobs are transferred to cost of goods sold when completed.
1. Compute the overhead allocation rate.
2. Calculate the balance in ending work in process and cost of goods sold before any adjustments for under- or overallocated overhead.
3. Calculate under- or overallocated overhead.
4. Calculate the ending balances in work in process and cost of goods sold if the under- or overallocated overhead amount is as follows:
|
Direct materials |
Direct labor |
| Job 11 |
$3,620 |
$4,500 |
| Job 12 |
$6,830 |
$7,250 |
a. Written off to cost of goods sold
b. Prorated using the ending balance (before proration) in cost of goods sold and work-in-process control accounts
5. Which of the methods in requirement 4 would you choose? Explain.
|
What were the amounts of real gdp
: Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced.
|
|
Ramifications of the rationalization of society
: Discuss the ramifications of the rationalization of society; include detail about the model of production in traditional and non-traditional societies.
|
|
Systematic reasoning-disagreements-claims and reasons
: In individual paragraphs explain what would be adequate?justification for the following assertions. Studying the night before an exam produces better results than getting up early and studying just before the exam.
|
|
What is sara''s real income in terms of cola
: Sara's income is $12 a week. The price of popcorn is $3 a bag, and the price of a cola is $3 a can. a. What is Sara's real income in terms of cola? b. What is her real income in terms of popcorn?
|
|
Calculate the balance in ending work in process
: Calculate the balance in ending work in process and cost of goods sold before any adjustments for under- or overallocated overhead and calculate under- or overallocated overhead.
|
|
What physical process at work in the sun
: Granulation, or the mottled appearance of the whole solar surface, is an indication of what physical process at work in the sun?
|
|
Compute the pretax effect of this option plan
: Compute the pretax effect of this option plan on the net income of Intel for 2008 through 2012. Accounting for stock options. Intel granted stock options to employees on December 31, 2007, permitting them to purchase 24.6 million shares of Intel co..
|
|
What is the relative price of a dvd
: Jason enjoys DVDs and spy novels and spends $60 a month on them. The price of a DVD is $20 and the price of a spy novel is $10. a. What is Jason's real income in terms of spy novel?
|
|
Describe the effects on the price of a recordable cd
: What is the effect on the price of a recordable CD and the quantity of recordable CDs sold if a. The price of an MP3 download rises? b. The price of an iPod falls? c. The supply of CD players increases?
|