Solutions Exam 2

Solutions Exam 2 - Exam2PracticeProblems Question1

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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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