W2Chapters45 - Lydia Holmes Cost Accounting Problem 4-19...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Lydia Holmes Cost Accounting Problem 4-19 Waheed Company uses normal costing. It allocates manufacturing overhead costs using a budg The following data are available for 2006: Budgeted manufacturing overhead costs $2,850,000 Budgeted machine hours 190,000 Actual manufacturing overhead costs $2,910,000 Actual maching hours 195,000 1. Calculate the budgeted manufacturing overhead rate Budgeted manufacturing overhead rate = Budgeted manufacturing overhead costs / B Budgeted manufacturing overhead rate = $2,850,000 / 190,000 Budgeted manufacturing overhead rate = $15 2. Calculate the manufacturing overhead allocated during 2006 Manufacturing overhead costs allocated = Budged manufacturing overhead rate x A Manufacturing overhead costs allocated = $15 x 195,000 Manufacturing overhead costs allocated = $2,925,000 3. Calculate the amount of under- or overallocated manufacturing overhead $15,000 is the overallocated manufacturing overhead. Actual overhead costs geted rate per machine-hour. Budgeted total quantity of cost-allocation base Actual quantity of direct manufacturing hours of labor s were less than the allocated amount. Lydia Holmes Cost Accounting Problem 4-30 The Solomon Company uses a job costing system at its Dover, Delaware, plant. The plant h costing with two direct-cost categories (direct materials and direct manufacturing labor) and tw hours as the allocation base, and the Finishing Department, with direct manufacturing labor c Manufacturing overhead $10,000,000 Direct manufacturing labor costs $900,000 Direct manufacturing labor hours 30,000 Machine hours 200,000 1. Prepare an overview diagram of Solomon's job-costing system Indirect-Cost Pool } Indirect Cost-Allocation Base } $95 Cost Object: Specialized Machinery } Direct Costs } 2. What is the budgeted overhead rate in the Machining Department? In the Finishing Machining Department Budgeted manufacturing overhead rate = Finishing Department Budgeted manufacturing overhead rate = 3. During the month of January, the job-cost record for Job 431 shows the following: Machining Department Direct manufacturing labor-hour Budgeted manufacturing overhead rate = Budged manufacturing overhead costs Machining Department All manufacturing overhead costs $18,000,000 190,000 Direct manufacturing labor hours Manufacturing overhead costs------------------------------------------ Direct costs Direc Manufac Labo Direct Materials Direct materials used $14,000 Direct manufacturing labor costs $600 Direct manufacturing labor hours 30 Machine hours 130 Compute the total manufacturing overhead allocated to Job 431 Job 431 Budgeted manufacturing overhead rate = 4. Assuming that Job 431 consisted of 200 units of product, what is the cost per unit?...
View Full Document

{[ snackBarMessage ]}

Page1 / 21

W2Chapters45 - Lydia Holmes Cost Accounting Problem 4-19...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online