HWKC11 - Exercise 11- 7A a. Total estimated overhead cost /...

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Exercise 11- 7A a. Total estimated overhead cost / Total estimated machine hours $500,000/125,000 = $4 per machine   hour b. $4 x 140,000 actual machine hours = $560,000 of overhead applied to work in process. Exercise 11-8A a. Total expected overhead costs –––––––––––––––––––––––––––––– = Predetermined overhead rate Total expected units $450,000 Predetermined overhead rate = ––––––––––– = $1.50 per unit 300,000 b. Allocated cost = Predetermined overhead rate x Weight of base = $1.50 x 24,000 units = $36,000 c. Overhead costs would be overapplied by $1,000 (i.e. $36,000 – $35,000). Exercise 11-12A Raw Mat. Inventory W-I-P Inventory 60,000 (a) 44,000 (a) 44,000 16,000 32,000 16,000 24,000 (c) 84,000 Finished Goods Inventory Cost of Goods Sold 16,000 (d) 14,000 (d) 14,000 2,000 adj 2,000 (e) 16,000 Manuf. Overhead (b)26,000 24,000 2,000 2,000 adj
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Exercise 11-13A a. Murphy Company Income Statement (Absorption Costing) Revenues $90,000 Cost of Goods Sold Direct Materials (1) $(20,000) Direct Labor (2) (14,000) MOH (3) (16,000) (50,000) Gross Margin 40,000 (12,000) Net Income $28,000 (1) Direct materials-$20/unit x 1,000 units = $20,000 (2) Direct labor-$14/unit x 1,000 units = $14,000 (3) MOH-$16/unit x 1,000 units = $16,000 b. Murphy Company Income Statement (Variable Costing) Revenues $90,000 Cost of Goods Sold Direct Materials (1) $(20,000) Direct Labor (2) (14,000) Variable MOH (3) (6,000) Variable S&A (4,000) (44,000) Contribution Margin 46,000 Fixed MOH (15,000) (8,000)
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This homework help was uploaded on 04/22/2008 for the course ACCT 2302 taught by Professor All during the Spring '08 term at Texas Tech.

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HWKC11 - Exercise 11- 7A a. Total estimated overhead cost /...

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