ChristinaWillis_ACG 3341-1M_Week 2_Homework

ChristinaWillis_ACG 3341-1M_Week 2_Homework - Week 2...

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Week 2: Homework 1 Christina Willis Week 2: Homework Everest College
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Week 2: Homework 2 Week 2: Homework Exercise 4-19 : Budgeted manufacturing overhead rate, allocated manufacturing overhead Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2014: Budgeted manufacturing overhead costs $4,200,000 Budgeted machine-hours 175,000 Actual manufacturing overhead costs $4,050,000 Actual machine-hours 170,000 1. Calculate the budgeted manufacturing overhead rate. Budgeted Manufacturing Overhead Rate Budgeted Manufacturing Overhead / Budgeted Machine Hours $4,200,000 / 175,000 $24 per Machine Hour 2. Calculate the manufacturing overhead allocated during 2014. Manufacturing Overhead Allocated Actual Machine Hours * Budgeted Manufacturing Overhead Rate 170,000 * $24 $4,080,000 3. Calculate the amount of under or over allocated manufacturing overhead. Why do Gammaro’s managers need to calculate this amount? Gammaro over allocated manufacturing overhead. The manufacturing overhead allocated is more than the manufacturing overhead costs. Manufacturing overhead allocated $ 4,080,000 Actual manufacturing overhead costs 4,050,000 Over allocated manufacturing overhead 30,000
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Week 2: Homework 3 Exercise 4-23 : Accounting for manufacturing overhead Jamison Woodworking uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under or over allocated overhead, if immaterial, is written off to Cost of Goods Sold. During 2014, Jamison recorded the following: Budgeted manufacturing overhead costs $4,400,000 Budgeted direct labor-hours 200,000 Actual manufacturing overhead costs $4,650,000 Actual direct labor-hours 212,000 1. Compute the budgeted manufacturing overhead rate.
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