5) Managerial Financial Accounting Assignments AE2-12 Solution

5) Managerial Financial Accounting Assignments AE2-12 Solution

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
AE2-12
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Allocating Manufacturing Overhead to Jobs [LO 6, 7] Webber Fabricating estimated the following annual costs. Ex pec ted ann ual dire ct lab or hou rs 43, 800 Ex pec ted ann ual dire ct lab or cos t $62 7,0 00 Ex pec ted ma chi ne hou rs 22, 500 Ex pec ted mat eria l cos t for the yea r $80 6,4 00
Image of page 2
Ex pec ted ma nuf act uri ng ove rhe ad $1, 213 ,00 0 Calculate overhead allocation rates using each of the four possible allocation bases provided. (Round answers to 2 decimal places, e.g. 5.25.) Direct labor hours $ 27.70 Direct labor cost $ 1.93 Machine hours $ 53.91 Direct material cost $ 1.50 AE2-12
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Overhead allocation rates: Allocation base Allocation Rate Direct labor hours $1,213,000 ÷ 43,800 DL Direct labor cost $1,213,000 ÷ $627,000 = Machine hours $1,213,000 ÷ 22,500 MH Direct material cost $1,213,000 ÷ $806,400 =
Image of page 4
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Determine the cost of the following job (number 253) using each of the four overhead allocation rates. (Use rounded amounts from previous question to calculate answers for this question. Round answers to 0 decimal places, e.g. 125.) Job 253 Direct materials $3,140 Direct labor (157 hrs @ $12/hr) $1,884 Machine hours used 157 Direct labor hours $ Direct labor cost $ Machine hours $ Direct material cost $ AE2-12 Cost of Job No. 253 using different allocation bases: Cost DLH DL Cost MH DM Cost Direct Materials $3,140 $3,140 $3,140 $3,140 Direct Labor 1,884 1,884 1,884 1,884 Manufacturing Overhead 4,347 3,636 8,464 4,710 Total $9,371 $8,660 $13,488...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern