Nylle Ltd uses a job-costing system at its Melbourne furniture plant. The plant has a Machining...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Nylle Ltd uses a job-costing system at its Melbourne furniture plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has two direct cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department overhead, allocated to jobs based on actual machine-hours, and the Assembly Department overhead, allocated to jobs based on actual direct manufacturing labour costs). The 2023 budget for the plant is: Machining Assembly Department BUDGET Annual Manufacturing overhead Direct manufacturing labour costs Direct manufacturing labour-hours Machine-hours Department $2,000,000.00 $ 3,200,000.00 $1,500,000.00 $2,100,000.00 120,000.00 55,000.00 220,000.00 220,000.00 Required: 1 Calculate the budgeted manufacturing overhead rate for each department. [2 marks] 2 During February, the job-cost record for Job 549 contained the following: ACTUAL COSTS Job 549 Machining Department Assembly Department $ 50,000.00 $ 75,000.00 Direct materials used Direct manufacturing labour costs Direct manufacturing labour-hours $ 15,000.00 $ 17,500.00 1,100.00 2,200.00 1,750.00 1,000.00 Machine-hours Calculate- a) the total manufacturing overhead costs allocated to Job 549 [2 marks] b) the total of all costs from each department relating to Job 549 [2 marks] c) the total costs for job 549. 3 At the end of 2023, calculate the over- or under-allocated manufacturing overhead for each department and explain possible causes for the over- or underallocations. [ 4 If the actual costs for 2023 were as listed below, a) calculate the Actual Manufacturing Overhead rate for each department. [ b) use the actual rates to re-allocate for all costs related to Job 549. [ Nylle Ltd uses a job-costing system at its Melbourne furniture plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has two direct cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department overhead, allocated to jobs based on actual machine-hours, and the Assembly Department overhead, allocated to jobs based on actual direct manufacturing labour costs). The 2023 budget for the plant is: Machining Assembly Department BUDGET Annual Manufacturing overhead Direct manufacturing labour costs Direct manufacturing labour-hours Machine-hours Department $2,000,000.00 $ 3,200,000.00 $1,500,000.00 $2,100,000.00 120,000.00 55,000.00 220,000.00 220,000.00 Required: 1 Calculate the budgeted manufacturing overhead rate for each department. [2 marks] 2 During February, the job-cost record for Job 549 contained the following: ACTUAL COSTS Job 549 Machining Department Assembly Department $ 50,000.00 $ 75,000.00 Direct materials used Direct manufacturing labour costs Direct manufacturing labour-hours $ 15,000.00 $ 17,500.00 1,100.00 2,200.00 1,750.00 1,000.00 Machine-hours Calculate- a) the total manufacturing overhead costs allocated to Job 549 [2 marks] b) the total of all costs from each department relating to Job 549 [2 marks] c) the total costs for job 549. 3 At the end of 2023, calculate the over- or under-allocated manufacturing overhead for each department and explain possible causes for the over- or underallocations. [ 4 If the actual costs for 2023 were as listed below, a) calculate the Actual Manufacturing Overhead rate for each department. [ b) use the actual rates to re-allocate for all costs related to Job 549. [
Expert Answer:
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
The Lynn Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining department and an assembly department. Its job-costing system has two direct-cost categories...
-
Giannacopoulos SA uses a job-costing system at its Korinthos plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has two direct-cost categories (direct...
-
Question 4 Tic-tac-toe (also known as noughts and crosses) is a game for two players, X and O, who take turns marking the spaces in a 3x3 grid. The player who succeeds in placing three of their marks...
-
Find the equation fo the Gateway Arch in St. Louis, Missouri, given that it is an inverted catenary. Assume that it stands on the x-axis, that it is symmetric with respect to the y-axis, and that it...
-
The Boston Beer Company Inc. (SAM) produces Samuel Adams beer and other alcoholic beverages. Boston Beer reported the following operating information for a recent year (in thousands): In addition,...
-
Develop the appropriate primary research question to be associated with this design. Develop a hypothetical research scenario that would necessitate the use of the Action Research Approach and a...
-
Overton Company has gathered the following information. Units in beginning work in process ....... 20,000 Units started into production ......... 164,000 Units in ending work in process ..........
-
The shadow cost and allowable changes for metal stress are missing from the sensitivity report. What numbers should be there? Explain how you were able to deduce each number. 5 km B A 15 5 km 5 km 22...
-
Based on the Lease Asset vs Total Asset visualization, what conclusions can be made?
-
Why must raw data, such as that compiled by the GFOA, be converted to useful geographical and population strata benchmarks?
-
What might be a potential pitfall of preparing and maintaining a rolling budget? Explain.
-
The month of July, the client had a database outage, lose some data, what are there any issues that you would want to bring to the audit manager's attention? What assertions will be?
-
three months ago CruiseEAstern Pty Ltd, a cruise shipping business, borrowed $1 billion from the Federation Bank on security over CruiseEastern Pty Ltd's fleet of cruise ships. CruiseEastern was...
-
A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $20 million and its accounts payable to suppliers decreased by $1 million. If cost of...
-
Babcock and Marks (2010) review survey data from 2003-2005, and obtained an average of u =14 hours per week spent studying by full-time students at four-year colleges in the United States. To...
-
A handrail, which weighs 120 N and is 1.8 m long. was mounted to a wall adjacent to a small set of steps (Figure P4.26). The support at A has broken, and the rail has fallen about the loose bolt at 8...
-
In a recent study of how mice negotiate turns, the mice ran around a circular 90 turn on a track with a radius of 0.15 m. The maximum speed measured for a mouse (mass = 18.5 g) running around this...
-
It is well known that runners run more slowly around a curved track than a straight one. One hypothesis to explain this is that the total force from the track on a runners feet the magnitude of the...
-
You are driving your car through a roundabout that has a radius of 9.0 m. Your physics textbook is lying on the seat next to you. What is the fastest speed at which you can go around the curve...
Study smarter with the SolutionInn App