Jobs on the basis of machine hours used

Assignment Help Accounting Basics

Reference no: EM13784704

1) Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $302,400 for the year, and machine usage is estimated at 126,000 hours.

For the year, $319,510 of overhead costs are incurred and 131,200 hours are used.

(a) Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)

(b) What is the amount of under- or overapplied overhead at December 31?

(c) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
2) The ledger of Custer Company has the following work in process account.

Work in Process-Painting

5/1 Balance 3,960 5/31Transferred out?

5/31 Materials 5,770

5/31 Labor 4,330

5/31 Overhead 1,710

5/31 Balance ?

Production records show that there were 410 units in the beginning inventory, 30% complete, 1,510 units started, and 1,400 units transferred out. The beginning work in process had materials cost of $2,240 and conversion costs of $1,720. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

(a) How many units are in process at May 31?

(b) What is the unit materials cost for May?

3) Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.

Standard

Custom

Direct labor costs$41,000$100,000

Machine hours1,1001,140

Setup hours95420

Total estimated overhead costs are $305,200. Overhead cost allocated to the machining activity cost pool is $199,700, and $105,500 is allocated to the machine setup activity cost pool.

(a) Compute the overhead rate using the traditional (plantwide) approach.

(b) Compute the overhead rates using the activity-based costing approach.

Reference no: EM13784704

Questions Cloud

The strategic planning for database systems : Write clearly and concisely about topics related to the strategic planning for database systems using proper writing mechanics and technical style conventions.

Consider the type of organizational structure : Why is it important for managers to carefully consider the type of organizational structure that they use to implement their strategies? Discuss the relationship between a firm’s strategy and its structure. Thoroughly support and substantiate your re..

What would this psychologist be looking for during voir dire : What would this psychologist be looking for during voir dire and in investigations of the jury pool? What, if any, different analysis techniques might a psychologist use when assisting the defense versus assisting the prosecution

Develop a character in a modern movie : Build your composite picture by demonstrating the ancient heroic model is used to develop a character in a modern movie.

Jobs on the basis of machine hours used : Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $302,400 for the year, and machine usage is estimated at 126,000 hours.

Structure will change as your organization grows : What type of structure would you choose for your organization/business (simple, functional, divisional, matrix, modular, and/or virtual)? Explain why you chose a specific structure. Do you think the structure will change as your organization grows?

Do you believe his views on women affect his conclusions : What is the general opinion on eyewitness testimony today? Do you believe his views on women affect his conclusions

Dietary supplement health and education act (dshea) : The symptoms of vitamin C deficiency include gums that swell and bleed. Why does this occur?

What are implications for the structure of this organization : Choose an article from Business Week, Fortune, Forbes, Fast Company, or any other well-known publication that deals with a corporation that has undergone a significant change in its strategic direction. What are the implications for the structure of ..

User Account

All Pages