3.16.1 may 18 Job Costing extra egs

3.16.1 may 18 Job - 1 Job Costing Extra Problems 2 Problem 1 Paxton Company Budgeted direct labour hours 15 000 Budgeted overhead $180 000 Cost

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Unformatted text preview: 1 Job Costing Extra Problems 2 Problem 1: Paxton Company Budgeted direct labour hours: 15 000 Budgeted overhead: $180 000 Cost information for Job K456 (completed during year): Direct materials cost $2 340 Direct labour cost $3 600 Average wage rate $10 per hour 3 Actual direct labour hours: 15 400 Actual overhead costs for the year: Equipment lease $ 5 000 Depreciation $ 20 000 Indirect labour $100 000 Utilities $ 15 000 Other $ 45 000 4 Required 1. Calculate the predetermined overhead rate for the year. 2. Calculate the total cost of Job K456. 3. Is overhead over or under- applied? By how much? 5 Problem 1: Solution 1. Predetermined overhead rate: per direct labour hour 2. Job K456 Direct materials Direct labour Overhead Total 3. Actual overhead: Applied overhead: Under-applied by 6 Problem 2: Stanley Company $ Sales 99 500 Direct labour 31 500 Factory insurance 1 050 Commissions paid 5 500 Factory supervision 6 675 Interest on loan 2 400 Admin. expenses 6 125 Material handling 11 235 Purchases of materials 45 000 Purchases of supplies 2 500 7 Inventories $ Materials, 1 Jan 2008 10 425 Materials, 31 Dec 2008 28 500 Supplies, 1 Jan 2008 4 900 Supplies, 31 Dec 2008 3 150 Work-in-process, 1 Jan 2008 37 500 Work-in-process, 31 Dec 2008 42 750 Finished goods, 1 Jan 2008 20 055 Finished goods, 31 Dec 2008 12 750 8...
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This note was uploaded on 12/23/2009 for the course BCOM ACIS 222 taught by Professor Neilcrombie during the Spring '09 term at Canterbury.

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3.16.1 may 18 Job - 1 Job Costing Extra Problems 2 Problem 1 Paxton Company Budgeted direct labour hours 15 000 Budgeted overhead $180 000 Cost

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