Chapter 5 Review Exercises

Chapter 5 Review Exercises - Company A B C Direct Labor...

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ACC 2362 -Chapter 5 Review Exercises Brandt Company produces metal sculptures. Overhead is applied on the basis of DL hours. Estim OH at the beginning of the year is $10,000 and estimated DL hours are 5,000. Actual OH is $15,0 On Jan 1, Job # 35 was in process and had a balance of $870. During January three more jobs w and the following material and labor costs were incurred. Direct Labor is paid at a rate of $10 per Job #35 Job #36 Job #37 Job #38 DM $400 $150 $200 $800 DL $300 $260 $150 $650 Job 37 was completed and sold during January for cost plus 50%. Job 35 & 38 were completed. 1) What is the predetermined OH rate? What is the amount of applied OH for each job? 2) At Jan 31st what is the amount of WIP? FG? CGS? 3) What is the amount of sales revenue? Estimated cost and operating data for three companies for the upcoming year follow:
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Unformatted text preview: Company A B C Direct Labor Hours 60,000 30,000 40,000 Machine Hours 25,000 90,000 18,000 Direct Materials Cost $300,000 $160,000 $240,000 Manufacturing Overhead Cost $432,000 $270,000 $384,000 Predetermined overhead rates are computed using the following drivers in the three companies: Company Driver A DLH B MH C DM Cost Company A works on three jobs during the upcoming year. Direct labor hours recorded by job are Job 308 - 7,000 hours; Job 309 - 30,000 hours and Job 310 - 21,000 hours. Actual overhead cost total $420,000 for the year. Unadjusted Cost of Goods Sold is $750,000. 1) Compute the predetermined OH rate for each company. 2) What is the amount of the OH variance for Company A? 3) What is the amount of adjusted Cost of Goods Sold? imated 000. ere started DLH. e: ts...
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Chapter 5 Review Exercises - Company A B C Direct Labor...

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