Solutions Exam 2

# Solutions Exam 2 - Question1 Machining Overhead \$250,000...

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Exam 2 Practice Problems Question 1  Machining Finishing Overhead \$250,000 \$300,000 DLhrs. 40,000 60,000 Machine hrs. 10,000 15,000 Plantwide: Miami Manufacturing uses DL hours Departmental: Machining uses machine hours Finishing uses DL hours Machning Finishing Overhead \$100,000 \$65,000 DL hrs. 20,000 17,000 Machine hrs. 2500 6000 Questions: 1. Compute the Plantwide OH Rate and apply it to the actual amounts. 2. Compute the Departmental OH Rates and apply them to the actual amounts. Plantwide Rate: \$550,000   = \$5.50/ DL hr. 100,000 DL hrs. Actual Amounts: Machining Finishing Rate  \$5.50  \$5.50  X Actual DL hrs. X 20000 X 17000 OH Applied \$110,000  \$93,500  Departmental Rate: Machining Finishing \$250,000  \$300,000  10,000 Mach hrs 60,000 DL hrs. \$25.00/ Mach hr \$5.00/ DL hrs. Rate \$25.00  \$5.00  X Actual Amount X 2,500 Mach hrsX 17,000 DL hrs. OH Applied \$62,500  \$85,000  Actual \$100,000 \$65,000 Applied \$62,500  \$85,000  Variance \$37,500  (\$20,000) Underapplied Overapplied Question 2  Job 102 Job 103 Job 104 Job 105 Beginning Balance \$10,300 \$6,200 \$0 \$0 Direct Materials Cost \$3,500 \$6,000 \$1,600 \$1,500 Direct Labor Cost \$1,600 \$2,400 \$350 \$200 Completed in Month? Yes Yes No No Overhead based on DL hours and are \$10 per DL hour. DL wages are \$8 per hour Jobs 102 and 103 were completed; 104 and 105 were started. Questions: 1. Compute the number of DL hours worked for each job. 2. Compute overhead per job.
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