Model Answer Chap. 4 - (4-20)

Model Answer Chap. 4 - (4-20) - Assembly overhead: 000 ,...

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Chapter Four Job costing 4-20 (20-30 min.) Job costing, accounting for manufacturing overhead, budgeted rates. 1. An overview of the product costing system is COST OBJECT: PRODUCT COST ALLOCATION BASE DIRECT COST } } Machining Department Manufacturing Overhead Machine-Hours Direct Materials INDIRECT COST POOL } Direct Manufacturing Labor Indirect Costs Direct Costs } Assembly Department Manufacturing Overhead Direct Manuf. Labor Cost Budgeted manufacturing overhead divided by allocation base: Machining overhead 000 , 50 000 , 800 , 1 $ = $36 per machine-hour
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Unformatted text preview: Assembly overhead: 000 , 000 , 2 $ 000 , 600 , 3 $ = 180% of direct manuf. labor costs 2. Machining department, 2,000 hours $36 $72,000 Assembly department, 180% $15,000 27,000 Total manufacturing overhead allocated to Job 494 $99,000 3. Machining Assembly Actual manufacturing overhead $2,100,000 $ 3,700,000 Manufacturing overhead allocated, 55,000 $36 1,980,000 180% $2,200,000 3,960,000 Underallocated (Overallocated) $ 120,000 $ (260,000 )...
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This note was uploaded on 04/08/2011 for the course MGMT 401 taught by Professor Mohamed during the Spring '11 term at Manor.

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