Ch04HomeworkSolutions_Es1thru6

Ch04HomeworkSolutions_Es1thru6 - CHAPTER 4 ACTIVITY-BASED...

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CHAPTER 4 ACTIVITY-BASED COSTING EXERCISES 4–1 1. Predetermined overhead rate = $728,000/26,000 = $28 per direct labor hour 2. Applied overhead = ($28 × 25,100) = $702,800 3. Actual overhead $726,000 Applied overhead 702,800 Underapplied overhead $ 23,200 4. Prime cost $3,500,000 Applied overhead 702,800 Total cost $4,202,800 Divided by units ÷ 500,000 Unit cost $ 8.4056 4–2 1. Bill predetermined overhead rate = $304,000/16,000 = $19 per machine hour Ted predetermined overhead rate = $220,000/$400,000 = 0.55, or 55% of materials cost 2. Bill: Actual overhead $305,000 Applied overhead ($19 × 15,990) 303,810 Underapplied overhead $ 1,190 Ted: Actual overhead $216,000 Applied overhead (0.55 × $395,000) 217,250 Overapplied overhead $ 1,250 4–3 1. $2,800,000/250,000 = $11.20 per machine hour
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2. $2,856,000 Applied overhead ($11.20 × 255,000) 2,820,000 Actual overhead $ 36,000 Overapplied overhead 4–3 Concluded 3. Overhead Control. .......................... 36,000 Cost of Goods Sold. ................. 36,000 4. Work-in-Process Inventory $ 192,000 (19.2%: $192,000/$1,000,000) Finished Goods Inventory 208,000 (20.8%: $208,000/$1,000,000) Cost of Goods Sold 600,000 (60.0%: $600,000/$1,000,000) $ 1,000,000 Overhead Control. .......................... 36,000 Work-in-Process Inventory. ..... 6,912 (19.2% × $36,000) Finished Goods Inventory. ...... 7,488 (20.8% × $36,000)
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This note was uploaded on 02/08/2010 for the course ACTG 3000 taught by Professor C during the Spring '10 term at Oregon State.

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Ch04HomeworkSolutions_Es1thru6 - CHAPTER 4 ACTIVITY-BASED...

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