Supplementary questions_Chp

Supplementary questions_Chp - APPLIED MANAGERIAL ACCOUNTING...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
APPLIED MANAGERIAL ACCOUNTING SUPPLEMENTARY QUESTIONS – Chapter. 3 SUPPLEMENTARY QUESTIONS - CHAPTER 3 - JOB COSTING T- ACCOUNTS EXERCISE 3-5 Diewold Company has two departments, milling and assembly. The company uses a job-order cost system and computes a predetermined overhead rate in each department. The milling department bases its rate on machine-hours, and the assembly department bases its rate on direct labour cost. At the beginning of the year, the company made the following estimates: Department Milling Assembly Direct labour-hours……………………. 8,000 75,000 Machine-hours…………………………. . 60,000 3,000 Manufacturing overhead cost…. $ 510,000 $ 800,000 Direct labour cost……………………… 72,000 640,000 Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for job 407, which was started and completed during the year, showed the following: Department Milling Assembly Direct labour-hours……………………. 5 20 Machine-hours…………………………. . 90 4 Materials requisitioned…………. .…. $ 800 $ 370 Direct labour cost………………………. 45 160 Compute the total overhead cost applied to job 407. EXERCISE 3-6 Applying Overhead; T-Accounts Medusa Products is a manufacturing company that operates a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $170,000 in manufacturing overhead costs for the year and work 85,000 machine-hours. Required: 1. Compute the company’s predetermined overhead rate. 2. Assume that during the year the company actually works only 80,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Manufacturing Work in
Background image of page 1

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

View Full DocumentRight Arrow Icon
APPLIED MANAGERIAL ACCOUNTING SUPPLEMENTARY QUESTIONS – Chapter. 3
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Supplementary questions_Chp - APPLIED MANAGERIAL ACCOUNTING...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online