What is the budgeted manufacturing overhead rate

Assignment Help Managerial Accounting
Reference no: EM132571550

The Xio Company uses a job-costing system at its plant. The plant has a forming department and a boxing department. Xio uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the Forming department with machine-hours as the allocation base and the Boxing department with direct manufacturing labor costs as the allocation base).

The 2017 budget for the plant is as follows:

                                                                Forming Department                 Boxing Department

Manufacturing overhead costs                                $21,662,500                          $20,452,500

Direct manufacturing labor costs                                $ 2,425,000                        $7,181,000

Direct manufacturing labor-hours                                  45,000                                  193,750

Machine-hours                                                            231,250                                  46,250

Question 1. What is the budgeted manufacturing overhead rate in the Forming department?

Question 2. What is the budgeted manufacturing overhead rate in the Boxing department?

Question 3. During the month of March, the job-cost record for Job 232 shows the following:

                                                              Forming Department                      Boxing Department

Direct materials used                                            $32,500                                  $12,500

Direct manufacturing labor costs                             $ 2,250                                    $3,125

Direct manufacturing labor-hour                                      25                                      90

Machine-hours                                                               175                                     25

Compute the total manufacturing overhead cost allocated to Job 232.

Question 4. Assuming that Job 232 consisted of 400 units of product, what is the total cost per unit?

Question 5. Amounts at the end of 2017 are as follows:

                                                             Forming Department                                 Boxing Department    

Manufacturing overhead incurred                          $25,000,000                                     $19,950,000

Direct manufacturing labor costs                               $ 2,575,000                                    $8,250,000

Machine-hours                                                            250,000                                               42,500

Compute the under- or overallocated manufacturing overhead for each department and for the plant as a whole.

Question 6. Mention 2 advantages of having two different manufacturing overhead cost pools in its job-costing system and on what basis these pools are created?

Reference no: EM132571550

Questions Cloud

Advise wong regarding his liability as a former partner : Wong retired as a partner from a firm, where he was a partner for 20 years. Advise Wong regarding his liability as a former partner
Prepare incremental analysis showing current designs : Prepare incremental analysis showing whether Current Designs should make or buy the Revolution Seating System
Estimated for stocks a and b : The index model has been estimated for stocks A and B with the following results:
How much direct materials was purchased : Direct Materials on December 31, 2018 is one fourth of DIrect MAterials used for production during the year, HOW much Direct MAterials was purchased during 2018
What is the budgeted manufacturing overhead rate : What is the budgeted manufacturing overhead rate in the Boxing department? Compute the total manufacturing overhead cost
Determine the contribution margin per machine hour : Xcelerate Productions Limited manufactures and sells three different products of different qualities. Determine the contribution margin per machine hour
Retrenchment benefits that he entitled to get : What are the factors to be considered when assessing whether cost-effectiveness or financial reasons are sufficient to constitute
Explore the ethical and sustainability issues : Critically evaluates the approach the business is currently taking to address those challenges and Critically evaluates the challenges in implementing
Prepare cvp income statement : A new raw material is available that will decrease the variable costs per unit by 20% (or $2.40). Prepare CVP income statement

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd