Solutions_Assignment04

# Solutions_Assignment04 - AF2110- Assignment 4 Problem 3-25...

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AF2110- Assignment 4 Problem 3-25 (30 minutes) 1. Preparation Department predetermined overhead rate: Estimated total manufacturing overhead cost Predetermined = overhead rate Estimated total amount of the allocation base \$416,000 = =\$5.20 per machine-hour 80,000 machine-hours Fabrication Department predetermined overhead rate: Estimated total manufacturing overhead cost Predetermined = overhead rate Estimated total amount of the allocation base \$720,000 = =180% of materials cost \$400,000 materials cost 2. Preparation Department overhead applied: 350 machine-hours × \$5.20 per machine-hour . .... \$1,820 Fabrication Department overhead applied: \$1,200 direct materials cost × 180% . .................. 2,160 Total overhead cost . ............................................. \$3,980 3. Total cost of Job 127: Preparation Fabrication Total Direct materials . .............. \$ 940 \$1,200 \$2,140 Direct labor . .................... 710 980 1,690 Manufacturing overhead . .. 1,820 2,160 3,980 Total cost . ....................... \$3,470 \$4,340 \$7,810 Unit product cost for Job 127: \$7,810 Average cost per unit = = \$312.40 per unit 25 units

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Problem 3-25 (continued) 4. Preparation Fabrication Manufacturing overhead cost incurred . ..... \$390,000 \$740,000 Manufacturing overhead cost applied: 73,000 machine-hours × \$5.20 per machine-hour . ................................... 379,600 \$420,000 direct materials cost × 180%. ............................................... 756,000 Underapplied (or overapplied) overhead . .. \$ 10,400 \$(16,000 )
Problem 3-29 (30 minutes) 1. The predetermined overhead rate was: Estimated total manufacturing overhead cost Predetermined = overhead rate Estimated total amount of the allocation base \$1,530,000 = =\$18 per computer hour 85,000 computer hours 2. Actual manufacturing overhead cost . ...................... \$1,350,000 Manufacturing overhead cost applied to Work in Process during the year: 60,000 actual computer hours × \$18 per computer hour . ......................... 1,080,000 Underapplied overhead cost . ................................. \$ 270,000 3. Cost of Goods Sold . .................................... 270,000 Manufacturing Overhead . ...................... 270,000 4. The underapplied overhead would be allocated using the following percentages: Overhead applied during the year in: Work in process . ............................. \$ 43,200 4 % Finished goods . ............................... 280,800 26

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## This note was uploaded on 10/20/2010 for the course AD abc123 taught by Professor Cat during the Summer '09 term at City University of Hong Kong.

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Solutions_Assignment04 - AF2110- Assignment 4 Problem 3-25...

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