1 question tco 2 xyz company uses budgeted

This preview shows page 6 - 9 out of 11 pages.

1. Question : (TCO 2) XYZ Company uses budgeted (predetermined) overhead rates to apply its factory overhead costs to individual jobs. More specifically, it uses a system based on machine hours . At the end of last year, the company made the following estimates (in advance) for this year. Direct labor costs $15,000,000 Factory overhead costs $18,500,000 Direct labor hours 500,000 Machine hours 1,000,000 Please answer both of the following parts of this question : (a) What is the budgeted (predetermined) overhead rate for the company? (PLEASE SHOW YOUR WORK for full credit) (b) If Job #33133 had the costs listed below, what would be the total cost of Job #33133? (PLEASE SHOW YOUR WORK for full credit)
Material costs for this job were $600,000; Direct labor costs for this job were $750,000; Direct labor hours for this job were 20,000; and Machine hours for this job were 22,000.
See Chapter 3. Points Received: 30 of 30 Comments: Correct! Question 2. Question : (TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department: Forming Department Month Ended June 30 Unit information Beginning work in process, June 1 --- 4,000 units Started into production during June --- 22,000 units Completed and transferred out to Finishing Department during June --- 20,000 units Ending work in process, June 30 --- 6,000 units (20% complete with respect to direct materials and 50% complete with respect to conversion costs) Cost information: Beginning work in process as of June 1 consists of $1,000 of direct materials costs and $4,500 of conversion costs --- $5,500 total Direct materials used in June --- $7,268 Conversion costs incurred in June --- $32,990 Please answer both of the following parts of this question :
(a) Calculate the total number of equivalent units with respect to direct materials. (SHOW YOUR WORK for full credit) (b) Calculate the cost per equivalent unit with respect to direct materials. (SHOW YOUR WORK for full credit)

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture