250_Hwk_Chapter_4D

250_Hwk_Chapter_4D - ACCT 250 HOMEWORK CHAPTER 4D P4-43 1...

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ACCT 250 HOMEWORK CHAPTER 4D 2429209172a0d1ca852d72bad394bb8a7438ba70.xls PAGE 1 OF 2 P4-43 1 Estimated Service overhead 225,000 Divide by: Estimated Direct labor cost 180,000 POHR 1.25 per $ of Direct labor 2 Barry Miles Direct labor 2,200 8,400 Times: POHR 1.25 1.25 Overhead applied 2,750 10,500 3 Barry Miles Direct materials 200 2,690 Direct labor 2,200 8,400 Overhead 2,750 10,500 Total cost 5,150 21,590 P4-47 1 Spoilage that occurs within the range of spoiage that typically occurs is considered normal. In contast, abnormal spoilage is actual spoilage which exceeds normal limits. 2 Spoilage represents units of product which do not meet the specifications. Rework is extra cost incurred to bring a defective unit up to specifications. Scrap is raw material left over as a result of the manufacturing process. 3 a Good units produced 117,000 Normal spoilage rate 2.5% 2,925 Good output 117,000 Divide by: 1 minus normal rate 97.5% Normal output to achieve result 120,000 Normal output to achieve result
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250_Hwk_Chapter_4D - ACCT 250 HOMEWORK CHAPTER 4D P4-43 1...

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