Problem%202-22A[1]

# Problem%202-22A[1] - \$2136 3) Total cost recorded for Job...

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Problem 2-22A Group 4

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Keep in mind that: Predetermined overhead rate in the Molding dept . is based on machine-hours Predetermined overhead rate in the Painting dept . is based on direct labor cost
1) Predetermined overhead rate for the Molding dept: Budgeted overhead = \$602,000 = \$8.60 / machine hours Machine hours 70,000 Predetermined overhead rate for the Painting dept: Budgeted overhead = \$735,000 = 1.75 / direct labor dollar Direct labor cost \$420,000

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2) Compute the total overhead cost applied to Job 205: Molding dept: \$8.60 X 110 machine hours = \$946 Painting dept: 1.75 X \$680 labor cost = \$1190 Total overhead cost = \$946 + \$1190 =

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Unformatted text preview: \$2136 3) Total cost recorded for Job 205: Materials molding + Materials painting + Direct Labor molding + Direct Labor painting = \$470 + \$332 + \$290 + \$680 = \$1772 \$1772 + Total overhead cost = \$1772 + \$2136 = \$3908 3) continued… If job contained 50 units: Unit Product Cost = \$3908 = \$78.16 per unit 50 4) Underapplied/Overapplied overhead in each department = Actual total manufacturing overhead cost – Total manufacturing overhead applied Molding: \$570,000-\$602,000 = \$32,000 overapplied Painting: \$750,000 - \$735,000 = \$15,000 underapplied...
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## This note was uploaded on 03/19/2008 for the course IBM 301 taught by Professor Sally during the Spring '08 term at A.T. Still University.

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Problem%202-22A[1] - \$2136 3) Total cost recorded for Job...

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