Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing
Question:
Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job. Company Winton High School Job Direct materials $40,000 $2,000 Direct labor $10,000 $400 Manufacturing overhead costs $45,000 Machine-hours 100,000 mh 900 mh a. For Comfort Manufacturing, what is the annual manufacturing overhead cost-allocation rate? b. What amount of manufacturing overhead costs will be allocated to this job? c. What are the total manufacturing costs of this job? d. What is the bid price for the Winton High School job if the company uses a 40% markup of total manufacturing costs?
5) Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: Department A Department B Direct materials $700,000 $100,000 Direct manufacturing labor $200,000 $800,000 Manufacturing overhead $600,000 $400,000
The actual material and labor costs charged to Job #432 were as follows: Total Direct materials: $25,000 Direct labor: Department A $ 8,000 Department B $12,000 $20,000 Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year
6) Shotter Manufacturing is a small textile manufacturer using machine-hours to calculate the single indirect- cost rate to allocate manufacturing overhead costs to various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the jackets to be made for Jackson High School Science Olympiad. Company Jackson High School Job Direct materials $25,000 $600 Direct manufacturing labor $5,000 $150 Manufacturing overhead costs $30,000 Machine-hours (mh) 50,000 mh 800 mh a. For Shotter Manufacturing, determine the annual manufacturing overhead cost-allocation rate. b. Determine the amount of manufacturing overhead costs allocated to the Jackson High School job. c. Determine the estimated total manufacturing costs for the Jackson High School job.
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan