Week2_Bancroft

Week2_Bancroft - 4-17Destin Products 20111Budgeted...

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Unformatted text preview: 4-17Destin Products 20111Budgeted manufacturing overhead rate:$1.80 Actual manufacturing overhead rate:$1.90 Budgeted:Budgeted mfr OH costsBudgeted total qty of cost-allocation base$2,700,000 1,500,000=$1.80 Actual:Actual annual mfr OH costsActual annual qty of cost-allocation base$2,755,0001,450,000=$1.90 2aActual cost of job: $127,000 bNormal cost of job: $124,000 aActual costing:Direct manufacturing costsDirect materials$40,000Direct manufacturing labor30000$70,000Manufacturing overhead costs($1.90 x $30,000 dir mfr labor)$57,000Total manufacturing costs of Job 626$127,000bNormal costing:Direct manufacturing costsDirect materials$40,000Direct manufacturing labor30000$70,000Manufacturing overhead costs($1.80 x $30,000 dir mfr labor)$54,000Total manufacturing costs of Job 626$124,0003Normal:$2,755,000Actual:$2,610,000Using the normal costing process, there is an over-allocatedmanufacturing OH of $145,000. There is no under or over allocationusing actual costing, because the actual costs and rates are used. Normal uses budgeted numbers to calculate the rate, which means it will be an estimate of the actual numbers.4-23Pittsburgh Forging Company 2011Budgeted manufacturing OH costs$7,500,000Budgeted machine-hours 250,000 Actual manufacturing OH costs$7,300,000Actual machine-hours 245,000 1Compute budgeted mfr OH rate:Budgeted mfr OH costsBudgeted total qty of cost-allocation base7,500,000 250,000 =$30 per machine hour2Prepare jounal entries to record allocation of mfr OH:Work in process7,350,000 Mfr OH Allocated7,350,0003$7,300,000245,000=$29.80 per machine hourNormal costing:7,350,000...
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Week2_Bancroft - 4-17Destin Products 20111Budgeted...

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