Managerial Accounting Homework Revew Chapter 2 Answer Key

Managerial Accounting Homework Revew Chapter 2 Answer Key -...

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Chapter 2 Homework Assignment Review Sheet EXERCISES E4. LO 4 a. Pd. J b. Pe. P c. J f. J E5. LO 1, 2 a. Y e. Y b. N f. Y c. Y g. Y d. Y h. N E7. LO 3, 6 Note that direct materials are charged to Work in Process while indirect materials are charged to Manufacturing Overhead. Work in Process 1,700 Raw Materials 1,700 (300 + 400 + 450 + 550 = 1,700) Manufacturing Overhead 110 Raw Materials 110 E8. LO 3, 6 Note that direct labor is charged to Work in Process while indirect labor is charged to Manufacturing Overhead. Work in Process 75,000 Wages Payable 75,000 Manufacturing Overhead 52,000 Wages Payable 52,000
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E9. LO 3, 6 a. Job No. 201 120 hrs. × $9/hr $ 1,080 80 hrs. × $20/hr. 1,600 50 hrs. × $10/hr. 50 0 Total $ 3,18 0 Job No. 202 40 hrs. × $18 /hr. $720 Job No. 203 60 hrs. × $16/hr. $960 b. Labor Report for the month of February (by job): Time Job Ticket Hours Rate Cost 201 2101 120 9.00 $ 1,080 201 2102 80 20.00 1,600 201 2103 50 10.00 500 240 3,180 202 2104 4 0 18.00 720 203 2105 6 0 16.00 96 0 Total labor charges $ 4,86 0 Work in Process 4,860 Wages Payable 4,860 2- 2
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E10. LO 6, 7 (1) Predetermined overhead allocation rate based on direct labor hours: $800,000 / 50,000 DLH = $16.00 per direct labor hour (2) Predetermined overhead allocation rate based on direct labor costs: $800,000 / $1,600,000 = $0.50 per dollar of direct labor (3) Predetermined overhead allocation rate based on machine hours: $800,000 / 25,000 machine hours = $32.00 per machine hour E12. LO 6, 7 a. Overhead allocation rates: Allocation base Allocation Rate Direct labor hours $900,000 / 40,000 DLH = $22.50 per direct labor hour Direct labor cost $900,000 / $600,000 = $1.50 per dollar of direct labor cost Machine hours $900,000 / 15,000 MH = $60 per machine hour Direct material cost $900,000 / $800,000 = $1.125 per dollar of direct material b. Cost of Job No. 253 using different allocation bases: Cost DLH DL cost MH DM cost Direct Materials $2,500 $2,500 $2,500 $2,500.00 Direct labor 1,540 1,540 1,540 1,540.00 Manufacturing Overhead 3,150 2,310 6 ,000 2 , 812.5 0 Total $ 7,190 $ 6,350 $ 10 ,040 $ 6 , 852.5 0 E13. LO 3, 6 a. Overhead applied is equal to $4 × $75,000 of direct labor = $300,000. Work in Process 300,000 Manufacturing Overhead 300,000 b. Actual overhead is $250,000 Manufacturing Overhead 250,000 Raw Materials 35,000 2- 3
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Wages Payable 75,000 Utilities Payable 20,000 Accumulated Depreciation 80,000 Repair Expense 40,000 E14. LO 8 a. Overhead applied is $300,000 while actual overhead is $250,000. Thus,
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This note was uploaded on 09/22/2009 for the course BUSINESS ACG 2071 taught by Professor Love during the Fall '09 term at Florida State College.

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Managerial Accounting Homework Revew Chapter 2 Answer Key -...

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