1. Agate Company uses job order costing for each of its three departments. Overhead is applied...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Agate Company uses job order costing for each of its three departments. Overhead is applied to jobs on the basis of Direct Labor in Department D, Labor Hours in Department E, and Machine Hours in Department F. Annual Costs were estimated for each department as follows: Department D $1,200,000 Department E Manufacturing OH Department F $1,500,000 $900,000 Direct Labor Costs $1,500,000 $1,250,000 $450,000 Direct Labor Hours 100,000 125,000 450,000 Machine Hours 400,000 500,000 120,000 At the end of the first month, the following ACTUAL costs and production was shown: Department D Department E $126,000 Department F $78,000 $140,000 Direct Materials Manufacturing OH Direct Labor Costs Direct Labor Hours Machine Hours (a) (b) (c) $99,000 $124,000 $79,000 $120,000 $110,000 $37,500 8,000 11,000 3,500 34,000 45,000 10,400 Compute the pre-determined overhead rate for each department Compute the total manufacturing costs assigned to each department for the month Compute the under- or over-applied overhead for each department for the end of the month 1. Agate Company uses job order costing for each of its three departments. Overhead is applied to jobs on the basis of Direct Labor in Department D, Labor Hours in Department E, and Machine Hours in Department F. Annual Costs were estimated for each department as follows: Department D $1,200,000 Department E Manufacturing OH Department F $1,500,000 $900,000 Direct Labor Costs $1,500,000 $1,250,000 $450,000 Direct Labor Hours 100,000 125,000 450,000 Machine Hours 400,000 500,000 120,000 At the end of the first month, the following ACTUAL costs and production was shown: Department D Department E $126,000 Department F $78,000 $140,000 Direct Materials Manufacturing OH Direct Labor Costs Direct Labor Hours Machine Hours (a) (b) (c) $99,000 $124,000 $79,000 $120,000 $110,000 $37,500 8,000 11,000 3,500 34,000 45,000 10,400 Compute the pre-determined overhead rate for each department Compute the total manufacturing costs assigned to each department for the month Compute the under- or over-applied overhead for each department for the end of the month
Expert Answer:
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials,...
-
For each of its operating segments that require separate disclosure, what information must an enterprise disclose?
-
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. 1. Determine the predetermined overhead rate...
-
Junes Garden Supplies purchases merchandise on account from Lawn Supplies, Inc. The list price is $1,600, with a trade discount of 25 percent, terms 1/10, n/30. Junes Garden Supplies pays the amount...
-
Worst Buy Company has had a lot of complaints from customers of late and its stock price is now only $2 per share. It is going to employ a one-for-five reverse stock split to increase the stock...
-
Construct a random integer valued 4 x 4 matrix A. a. Reduce A to echelon form U with no row scaling, and compute det A. (If A happens to be singular, start over with a new random matrix.) b. Compute...
-
Determine the necessary stiffness and the damping constant of an accelerometer if the maximum error is to be limited to \(3 \%\) for measurements in the frequency range of \(0 \mathrm{~Hz}\) to \(100...
-
Complete the table below and plot the EAC as a function of time. What are yourconclusions? Cumulative Cost, in Thousands Variance S Week BCWS BCWP ACWP Schedule Cost EAC 50 70 90 120 130 140 165 200...
-
Assume a merchandising company provides the following information from its master budget for the month of May Sales $ 119,000 Cost of goods sold $ 84,000 Selling and administrative expenses $ 18,000...
-
A randomized controlled trial comparing two drugs for treating insomnia is said to have 85% power to detect a 20% relative reduction (RR=0.80) in sleep problems nine months following treatment at the...
-
Which of the following statements about period costs is true? A) Most period costs are expensed in the period the costs are incurred. B) Period costs are expensed when the products associated with...
-
Strategic Decision-Making: Innovation and Implementation of a New Reporting Solution Tatjana Vasiljeva, RISEBA University of Business, Arts and Technology, Latvia A beautiful sunny winter day......
-
Reflect on a time you have seen language interfere with a message either at work, school or in your personal life. How might a change in the formality, simplicity, or reduction in redundancy have...
-
how would you order if you have forecasted demand mean and standard deviation of the forecasted demand? and what is the meaning of forecasted demand minus standard deviation of the demand ? how to...
-
the questions about the following scenarios that illustrate some of the 10 decision traps you have learned about. Justify your decision. What decision traps did you fall into when answering each...
-
The Mighty Chalkdust from Trinidad and Tobago composed the song "Sea Water and Sand.", we look at alliances that CVBs or NTOs can create to generate more visitor arrivals to their destinations. Read...
-
Suppose that the risks of working in a hospital during the pandemic caused many workers to reconsider applying for hospital jobs. What will happen to the supply of labor and the wage in this market?
-
Find the intercepts and then graph the line. (a) 2x - 3y = 6 (b) 10 - 5x = 2y
-
At April 30, partners capital balances in SKG Company are: S. Seger $52,000, J. Kensington $54,000, and T. Gomez $18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the SKGA Company...
-
Neff Manufacturing Inc. has beginning work in process $26,000, direct materials used $240,000, direct labor $200,000, total manufacturing overhead $180,000, and ending work in process $32,000.What...
-
Data for Castilla Company are given in BE21-8. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost...
-
A piece of red hot iron is suddenly plunged into \(10 \mathrm{~kg}\) of water at \(20^{\circ} \mathrm{C}\). The temperature of water rises to \(55^{\circ} \mathrm{C}\). Calculate the change in...
-
A reverse Carnot engine is used for the heating of a building. The building receives \(209 \mathrm{~kJ} / \mathrm{h}\) of heat at \(20^{\circ} \mathrm{C}\) from a heat pump. The outside air...
-
A hot iron having specific heat \(0.5 \mathrm{~kJ} / \mathrm{kg} \mathrm{K}\), mass \(30 \mathrm{~kg}\) and temperature \(500^{\circ} \mathrm{C}\) is dropped into \(200 \mathrm{~kg}\) of oil of...
Study smarter with the SolutionInn App