Krupetskiy_Chapter3

Krupetskiy_Chapter3 - 3.35 Labor wage rate $24.00 per hour...

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Unformatted text preview: 3.35 Labor wage rate $24.00 per hour Overhead rate 80%of direct material cost Sales revenue ### Selling and administrative cost $2,900 Raw-Material Inventory Work-in-Process Invent BB 2,000 BB 4,000 8,000 6,400 Labor 6,000 3,600 6,400 5,120 12,000 9,520 Finshed-Goods Inventory Manufacturing Overhe BB 6,000 5,200 5,120 12,000 8,000 80 10,000 Cost of Goods Sold Operating Profit 8,000 8,000 17,500 2,900 80 6,520 Miscellaneous (to collect various debits and credit f. 17,500 2,900 5,200 6,000 8,000 tory a. $6,400 b. $5,120 c. $12,000 d. $9,520 e. $80 f. $6,520 ead ts) 3.38 Budgeted overhead $900,000 Budgeted direct labor 100,000 direct labor hours Actual overhead $980,000 Actual direct labor hours 110,000 direct labor hours Predetermined overhead ra $9.00 per direct labor hour Manufacturing Overhead Overhead incurred 980,000 Overhead applied 990,000 Overapplied overhead 10,000 3.42 Job data X-10 Y-12 Z-14 Direct labor in beginning balan $1,280 $840 Direct labor added this month 1,400 4,000 2,840 Overhead rate Overhead incurred this month a. Job X-10 Beginning balance $1,280 Direct labor added 1,400 Overhead applied 1,340 Ending balance $4,020 b. Job Z-14 Beginning balance $- Direct labor added 2,840 Overhead applied 1,420 Ending balance $4,260 Manufacturing Overhead Overhead incurred 3,900 Overhead applied 5,180 Overapplied overhead 1,280 Total $2,120 8,240 50%of direct labor cost $3,900 Job Y-12 $840 4,000 2,420 $7,260 3.43 Client A Client B Hours worked 600 1,400 Billing rate Labor cost rate Overhead costs incurred Overhead cost application rate Selling and administrative cost Income statement Client A Client B Sales revenue $84,000 $196,000 Client expenses Direct labor costs 42,000 98,000 Overhead costs applied 7,200 16,800 Cost of services billed 49,200 114,800 Overapplied overhead Gross margin Selling and administrative costs Operating income Total 2,000 $140 $70 $20,000 $12.00 per direct labor hour $84,000 Total $280,000 140,000 24,000 164,000 4,000 120,000 84,000 $36,000 Fredrick Hampel: If the actual overhead was $30,000, what would change in the income statement? The overhead would be underappiled by $6000. Thus, operating income would only be $26,000. 3.49 Nocando Mfg Sails, Inc. Hours worked 1,000 300 Billing rate per hour Labor cost rate per hour Overhead costs incurred Marketing and administrative costs Predetermined overhead rate, per labor hour Nocando Mfg Sails, Inc. Sales revenue $80,000 $24,000 Direct-labor costs 30,000 9,000 Overhead costs 15,000 4,500 Client gross margin $35,000 $10,500 Unbilled labor cost Underapplied overhead Marketing and administrative costs Operating income Full-Cost-Based Income Statement Unbilled Total 500 200 2,000 $80 $30 ### ### $15.00 Total $40,000 $144,000 15,000 54,000 7,500 27,000 $17,500 $63,000 6,000 (3,000) 30,000 $24,000 Original John's Restaurants Original John's Restaurants 3.27 Data Input Selling costs $250,000 BB +TI- EB =TO Purchases of building material 820,000 300,000 820,000 270,000 ###...
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Krupetskiy_Chapter3 - 3.35 Labor wage rate $24.00 per hour...

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