Bauer manufacturing uses departmental cost driver

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Applied Calculus
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Chapter 5 / Exercise 66
Applied Calculus
Berresford/Rockett
Expert Verified
27) Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:MachiningAssemblyDirect labor-hours80,00040,000Machine-hours20,00020,000Direct labor cost$550,000$900,000Manufacturing overhead costs$480,000$280,000The accounting records of the company show the following data for Job #316:MachiningAssemblyDirect labor-hours12055Machine-hours505Direct material cost$250$150Direct labor cost$125$375What are the total manufacturing costs of Job #316? A) $1,885.00B) $2,085.00C) $2,485.00D) $900.00Answer: Explanation: DM $400 + DML $500 + MOH $1,585 = $2,485.00
C
Diff: 3Objective: 6AACSB: Application of knowledge
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Applied Calculus
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Chapter 5 / Exercise 66
Applied Calculus
Berresford/Rockett
Expert Verified
28) River Falls Manufacturing uses a normal cost system and had the following data available for 2018:Direct materials purchased on account$150,000Direct materials requisitioned84,000Direct labor cost incurred125,000Factory overhead incurred146,000Cost of goods completed288,000Cost of goods sold258,000Beginning direct materials inventory25,000Beginning WIP inventory69,000Beginning finished goods inventory51,000Overhead application rate, as a percent of direct-labor costs120 percentThe journal entry to record the materials placed into production would include a ________.
ADiff: 2Objective: 6AACSB: Analytical thinking29) River Falls Manufacturing uses a normal cost system and had the following data available for 2018:Direct materials purchased on account$159,000Direct materials requisitioned85,000Direct labor cost incurred133,000Factory overhead incurred140,000Cost of goods completed285,000Cost of goods sold249,000Beginning direct materials inventory34,000Beginning WIP inventory70,000Beginning finished goods inventory55,000Overhead application rate, as a percent of direct-labor costs130 percentThe ending balance of direct materials inventory is ________.
A
Diff: 2Objective: 6AACSB: Application of knowledge30) River Falls Manufacturing uses a normal cost system and had the following data available for 2018:Direct materials purchased on account$148,000Direct materials requisitioned88,000Direct labor cost incurred127,000

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