Problem%202-22A[1]

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

This preview shows pages 1–7. Sign up to view the full content.

Problem 2-22A Group 4

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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 =

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern