ACC312 Chapter 3 - Homework Solutions

ACC312 Chapter 3 - Homework Solutions - ACC312: CHAPTER 3...

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ACC312: CHAPTER 3 – ASSIGNED HOMEWORK SOLUTIONS WITHOUT CASE 3-62 EXERCISE 3-23 1. Process 2. Job-order 3. Job-order (contracts or projects) 4. Process 5. Process 6. Job-order 7. Process 8. Job-order (contracts or projects) 9. Process 10. Job-order EXERCISE 3-24 1. volum production budgeted overhead budgeted rate overhead ned Predetermi = (a ) At 200,000 chicken volume: chicke per $.60 200,000 ,000) ($.10)(200 $100,000 rate Overhead = + = (b ) At 300,000 chicken volume: (rounde chicken per $.43 300,000 ,000) ($.10)(300 $100,000 rate Overhead = + = (c ) At 400,000 chicken volume:
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chicke per $.35 400,000 ,000) ($.10)(400 $100,000 rate Overhead = + =
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2. The predetermined overhead rate does not change in proportion to the change in production volume. As production volume increases, the $100,000 of fixed overhead is allocated across a larger activity base. When volume rises by 50%, from 200,000 to 300,000 chickens, the decline in the overhead rate is 28.33% [(.60 – .43)/.60]. When volume rises by 33.33%, from 300,000 to 400,000 chickens, the decline in the overhead rate is 18.6% [(.43 – .35)/.43]. EXERCISE 3-27 1. Raw-material inventory, January 1. ................................ $134,00 0 Add: Raw-material purchases. ....................................... 191,000 Raw material available for use. ..................................... $325,00 0 Deduct: Raw-material inventory, January 31. ................. 124,000 Raw material used in January. ....................................... $201,00 0 Direct labor. ................................................................. 300,000 Total prime costs incurred in January. ........................... $501,00 0 2. Total prime cost incurred in January. ............................. $501,00 0 Applied manufacturing overhead (60% × $300,000). ...... 180,000 Total manufacturing cost for January. ............................ $681,00 0 3. Total manufacturing cost for January. ............................ $681,00 0 Add: Work-in-process inventory, January 1. ................... 235,000
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This note was uploaded on 04/05/2008 for the course ACC 02370 taught by Professor Harris during the Spring '08 term at University of Texas at Austin.

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ACC312 Chapter 3 - Homework Solutions - ACC312: CHAPTER 3...

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