) Hill Manufacturing uses departmental cost dri r rates to apply manufacturing overhead costs to products....
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) Hill Manufacturing uses departmental cost dri r rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied 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: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Direct labor-hours Machining Machine-hours Direct material cost Direct labor cost 10,000 dih 100,000 mh $80,000 $250,000 $720,000 $360,000 The accounting records of the company show the following data for Job #846 Machining 50 dlh 170 mh Assembly $2,700 $ 400 90,000 dlh 5,000 mh Assembly 120 dlh 10 mh $1,600 $ 900 I Required: a. Compute the manufacturing overhead allocation rate for each department. b. Compute the total cost of Job #846. C Provide possible reasons why Hill Manufacturing uses two different cost allocation rates. ) Hill Manufacturing uses departmental cost dri r rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied 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: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Direct labor-hours Machining Machine-hours Direct material cost Direct labor cost 10,000 dih 100,000 mh $80,000 $250,000 $720,000 $360,000 The accounting records of the company show the following data for Job #846 Machining 50 dlh 170 mh Assembly $2,700 $ 400 90,000 dlh 5,000 mh Assembly 120 dlh 10 mh $1,600 $ 900 I Required: a. Compute the manufacturing overhead allocation rate for each department. b. Compute the total cost of Job #846. C Provide possible reasons why Hill Manufacturing uses two different cost allocation rates.
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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