Answer-Assignment 3 - BMAC 5203 Assignment 3 Answer CH 5 Q1 At the beginning of the year Grey Corporation estimated the following Overhead Direct labor

Answer-Assignment 3 - BMAC 5203 Assignment 3 Answer CH 5 Q1...

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BMAC 5203: Assignment 3: Answer CH 5 Q1. At the beginning of the year Grey Corporation estimated the following: Assembly Department Packaging Department Overhead $ 840,000 $ 210,000 Direct labor hours 80,000 4,000 Machine hours 20,000 12,000 Grey uses departmental overhead rates. In the assembly department , overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Assembly Department Packaging Department Overhead $ 42,759 $ 20,400 Direct labor hours 4,000 300 Machine hours 1,000 1,200 Required: A.) Calculate the predetermined overhead rate for the assembly and packaging departments. B.) Calculate the overhead applied to production in each department for the month of April. C.) Calculate how much each department's overhead is overapplied/underapplied. ANS: A.) Assembly department overhead: $840,000/80,000 = $10.50 Packaging department overhead: $210,000/12,000 = $17.50 B.) Assembly department: $10.50 x 4,000 = $42,000 Packaging department: $17.50 x 1,200 = $21,000 C.)Assembly department: $42,759 - 42,000 = $759 underapplied Packaging department: $20,400 - 21,000 = $600 overapplied Q2. Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $420,000 in overhead and 30,000 direct labor hours. Pribil worked on five jobs in March. Data are as follows: Page 1 of 7
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Job 89 Job 90 Job 91 Job 92 Job 93 Balance, 3/1 $23,110 $18,240 $ 9,510 $ 0 $ 0 Direct materials 13,000 17,210 22,900 15,240 8,210 Direct labor cost $8,075 $11,500 $16,250 $9,750 $4,860 Direct labor hours 1,615 2,300 3,250 1,950 972 By March 31, Jobs 89 and 91 were completed and sold. The rest of the jobs remained in process. A. Calculate the plantwide overhead rate. B. Prepare a job-order cost sheet (as shown in the class). C. Calculate the Work in Process on March 31 and calculate the cost of goods sold for March.
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