Compute the predetermined overhead rate

Reference no: EM132090096

Question: Sino-woodworks Ethiopia Ltd makes office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine-hours, and the rate in the Fabrication Department is based on direct materials cost. At the beginning of the year, the company's management made the following estimates for the year: Job-C was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job:

Required: a) Compute the predetermined overhead rate used during the year in the Preparation and Fabrication Departments.

b) Compute the total overhead cost applied to Job-C.

c) What would be the total cost recorded for Job-C? If the job contained 25 units, what would be the unit product cost?

d) At the end of the year, the records of the company revealed the following actual cost and operating data for all jobs worked on during the year: What was the amount of under-applied or over-applied overhead in each department at the end of the year?

Reference no: EM132090096

Questions Cloud

Goal post loss function diagram the previous problem : Draw/sketch (by hand or using software) the goal post loss function diagram the previous problem.

What happens to the average level of inventory : If the head pharmacist takes delivery on Wednesdays and Fridays, 500 tablets with each delivery; what happens to the average level of inventory ?

Measure the effectiveness of their pay-for-performance plans : How could an organization measure the effectiveness of their pay-for-performance plans?

Traits important to round out his leadership style : What are some important traits Ray should cultivate to become a stronger leader? Why are these traits important to round out his leadership style?

Compute the predetermined overhead rate : Sino-woodworks Ethiopia Ltd makes office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply.

Drawbacks of democratic style of leadership : What are the benefits and drawbacks of an democratic style of leadership?

What is the amount of deferred tax asset : Stephens Company has a deductible temporary difference of $2,000,000 at the end of its first year of operations. Its tax rate is 40 percent.

Communications between drones and customers : How could the CRM system help communications between drones and customers?

How would you assign responsibility : Wallace Manufacturing produces engine parts for auto manufacturers. Recently, one of the major auto firms rejected a load of manifolds as being defective.

User Account

All Pages