BProblemsChapter 19-1 - Problem 19-1 Veronica Company a...

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Problem 19-1: Veronica Company a. Overhead rate = hours labor direct Estimated overhead Estimated = hours 20,000 $180,000 = $9 per direct labor hour b. Jobs G H Direct material ................................................................................................................................................................ $10,000 $10,000 Direct labor ..................................................................................................................................................................... 28,000 32,000 Overhead ......................................................................................................................................................................... 21,600 * 25,200+ Total production costs ..................................................................................................................................................... $59,600 $67,200 *2,400 hours @ $9 = $21,600 +2,800 hours @ $9 = $25,200 c. Job G Job H Production cost ................................................................................................................................................................ $ 59,600 $ 67,200 Selling price (180%) ....................................................................................................................................................... $107,280 $120,960 Problem 19-2: Vermont Sugar Enterprises a. Selling price of sugar—1,000 @ $2.00 ........................................................................................................................... $2,000.00 Traceable costs (after split-off) ....................................................................................................................................... 280.00 Gross margin ................................................................................................................................................................... $1,720.00 Total syrup cost: Process costs ($12,280 + $100,000) ............................................................................................................................ $112,280 Less sugar gross margin .............................................................................................................................................. 1,720 Cost allocated to syrup ................................................................................................................................................
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