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Krupetskiy_Chapter3 - 3.35 Labor wage rate Overhead rate...

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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
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tory a. $6,400 b. $5,120 c. $12,000 d. $9,520 e. $80 f. $6,520 ead ts)
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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
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3.42 Job data X-10 Y-12 Z-14 Direct labor in beginning balan $1,280 $840 0 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
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Total $2,120 8,240 50%of direct labor cost $3,900 Job Y-12 $840 4,000 2,420 $7,260
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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
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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.
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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
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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
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3.27 Data Input Selling costs $250,000 BB +TI - EB =TO Purchases of building material 820,000 300,000 820,000 270,000 ### Vehicle and transportation costs 20,000 G&A costs 400,000 Ending inventory, building materia 270,000 Beginning inventory, building mate 300,000 Sales revenue 2,000,000 3.29 BB+TI-TO=EB (A) (B) (C) Beginning balance $136,000 $56,800 $312,000 Ending balance 112,000 49,600 256,000 Transferred in 128,000 168,800 560,000 Transferred out 152,000 176,000 616,000 (D) (E) (F) Beginning balance $34,000 $14,200 $78,000 Ending balance 28,000 12,400 64,000 Transferred in 32,000 42,200 140,000 Transferred out 38,000 44,000 154,000 3.30 BB+TI-TO=EB (A) (B) (C) Beginning balance $5,000 23,000 $12,000 Ending balance 1,000 16,000 12,000 Transferred in 75,000 45,000 56,000 Transferred out 79,000 52,000 56,000 (D) (E) (F) Beginning balance $170,000 $71,000 $390,000 Ending balance 140,000 62,000 320,000 Transferred in 160,000 211,000 700,000 Transferred out 190,000 220,000 770,000 300,000 3.31 MaterialsInventory Work-in-Process 5,250 3000 9,000 10,500 10,500 3,750 8500 12,150 29300
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4850 FinishedGoods Cost of Goods Sold 23,000 41,000 29,300 41,000 11,300
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3.27 Data Input
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