Chapter 4 Lab Exercise Solutions

Chapter 4 Lab Exercise Solutions - Ch 4 Job Costing,...

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Ch 4 – Job Costing, Process Costing, and Operations Costing 1. Identify (with a ) each of the following costs as being either a product or period cost. If it is a product cost, further identify is as being either Direct Materials (DM), Direct Labor (DL), or Manufacturing Overhead (MOH). PRODUCT COST PERIOD COST DM DL MOH Abnormal spoilage of direct materials (two possible answers) or Normal spoilage of direct materials Fringe benefits paid by the employer on behalf of the assembly-line workers Fringe benefits paid by the employer on behalf of the factory maintenance worker. Fringe benefits paid by the employer on behalf of the company’s receptionist. Idle time incurred by assembly-line workers. Overtime incurred by the assembly-line worker in order to finish a “rush order” job per the customer’s request. 2. Simpson’s Builders manufactures custom-designed storage sheds. The company allocates overhead based on direct labor hours. The company estimates that this year’s overhead will be $30,000 based on an estimated 6,000 direct labor hours worked. A. What is the predetermined overhead rate? Estimated OH for the cost pool = $30,000 = $5 per DL hour Estimated units of cost driver 6,000 B. Assume that during the year, one particular job took 18 direct labor hours to complete. How much overhead should be assigned to that job?
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This note was uploaded on 11/22/2010 for the course ACC 200 taught by Professor Buckless during the Spring '08 term at N.C. State.

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Chapter 4 Lab Exercise Solutions - Ch 4 Job Costing,...

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