Tco 2 abc company uses budgeted overhead rates to

This preview shows page 3 - 5 out of 7 pages.

Question 1.Question :(TCO 2) ABC Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on direct labor hours. Last year, the company made the following estimates for this year. Direct labor costs $12,600,000Factory overhead costs $3,060,000Direct Labor Hours 600,000Machine Hours 450,000(a) What is the budgeted overhead rate for the company? (Show your work)(b) If Job #34199 had the costs listed below, what would be the total cost of Job #34199? (Show your work)Material costs were $100,000; Direct labor costs were $140,000; Direct labor hours were 12,000; and Machine hours were 15,000.Student Answer:a. Factory overhead cost / direct labor hours = budgeted overhead rate $3,060,000 / $600,000 = $5.10 per labor hour b. Material Costs -$100,000 Direct Labor Costs - $140,000 Factory Overhead (12,000 * $5.10) - $61,200 -------------- $301,200 Braun, K. W., Tietz, W. M. (2015-01-14). Managerial Accounting, 4th Edition. [devry]. Retrieved from Instructor Explanation:
Points Received:30 of 30Comments:
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 DepartmentMonth Ended June 30Unit informationBeginning work in process, June 1 --- 4,000Started into production during June --- 22,000Completed and transferred to Finished Department during June --- 20,000Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) --- 6,000Cost 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

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture