Compute the amount of overhead under or over-allocated

Assignment Help Financial Management

Reference no: EM131968634

InStep Company prints custom training material for corporations. The business was started in January 1, 2015. The company uses a normal costing method. It has two direct cost pools, direct materials and direct labour, and one indirect cost pool, overhead. Overhead is charged to printing jobs on the basis of direct labour cost. The following information is available for 2015:

Budgeted direct labour cost $225,000

Budgeted direct material cost $150,000

Budgeted overhead costs $315,000

Actual direct material costs $148,500

Actual direct labour costs $213,500

Actual manufacturing overhead cost $302,100

The company completed two jobs in December 31, 2015. The costs added to each job as of December 31 are as follows:

Direct materials Direct labour

Job 11 $48,700 $51,000

Job 12 $59,100 $68,000

Required

Compute the total cost of each of the two jobs.

Compute the amount of overhead under or over-allocated

Describe clearly what you would do with the overhead under or over-allocated in the accounts at December 2015.

Reference no: EM131968634

Questions Cloud

Difference between probable cause and reasonable suspicion : What is the difference between probable cause and reasonable suspicion?

Create a new thread and identify one technical challenge : Create a new thread and identify one technical challenge / opportunity facing your I&C industry in 2017 using at least one article or video that you have learn.

Contribute to capital project analysis success or failure : You believe most likely to contribute to capital project analysis success or failure.

What is the final amount in accounts payable : Receive payment of $12,000 owed by a customer and Purchase equipment for $45,000 in cash. What is the final amount in Accounts Payable

Compute the amount of overhead under or over-allocated : Compute the total cost of each of the two jobs. Compute the amount of overhead under or over-allocated

Explain how the diffusion of innovation was used : Post a brief summary of the article you selected. Explain how the diffusion of innovation was used. Then explain one of the principles of the diffusion.

Provide a brief overview of this law : Identify the barriers to reentry so specific challenges can be addressed. Specific legislation has been passed to promote the success of offenders.

Find the values and using the equations : Find the following values, using the equations, and then work the problems using a financial calculator to check your answers.

What is the final balance sheet value of inventory : Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory

User Account

All Pages