White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Required: Department Cutting 8,600 56,500 Finishing 75,000 1,200 $ 360,000 $ 538,000 $ 2.00 $ 3.75 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting 3 Finishing 19 82 6 $ 710 $ 66 $ 380 $ 418 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Finishing Department per DLH Predetermined overhead rate Cutting Department per MH White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Required: Department Cutting 8,600 56,500 Finishing 75,000 1,200 $ 360,000 $ 538,000 $ 2.00 $ 3.75 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting 3 Finishing 19 82 6 $ 710 $ 66 $ 380 $ 418 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Finishing Department per DLH Predetermined overhead rate Cutting Department per MH
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Describe the laws that govern e-signatures and any reforms you believe are necessary. o What constitutes an e-signature? o Why is an e-signature necessary in an e-commerce contract (focusing on the...
-
Hardin Smith is the owner of Staples (Pty) Ltd. The business is a registered VAT vendor and accounts for VAT on the invoice basis. The following information is an extract from the accounting records...
-
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its...
-
This exercise shows that the multiplier may be interpreted as a rate of change in general. Assume that the maximum of (x, y) subject to g(x, y) = c occurs at a point P. Then P depends on the value...
-
For each of the following pairs of functions f and g, give two possible forms for A that will allow the relation g(x) = A f(x) to be satisfied. (a) f = 2x4, g = 8x3; (b) f = 2x, g = x2; (c) f = x4, g...
-
The _______ statement is equivalent to the conditional operator (?:). a. If b. If/else c. Nested if d. Switch
-
A countercurrent leaching system is recovering oil from soybeans with five stages. On a volumetric basis, liquid flow rate/solids flow rate \(=1.36\). Recovery of oil in the solvent is \(97.5 \%\)....
-
For the following diagram, compute the rate of return on the $3810 investment. 500 500 500 500 250 250 250 810
-
K Cost of equity: SML. Stan is expanding his business and will sell common stock for the needed funds. If the current risk-free rate is 3.9% and the expected market return is 11.2%, what is the cost...
-
Julio buys a koi fishpond (and fish to put in it) for his wife on their anniversary. He pays $8000 for the pond and fish with $2000 down. The dealer charges add-on interest of 3.5% per year, and...
-
Daniela did not say thank you when someone held the door open for her. When her mom and her got back in the car, her mom yelled at her for not being polite. Daniela received _______________. Positive...
-
6 Can 2. Leanne's co-op experience is at the payroll department of a school board because one day she would like to go into accounting. Her supervisor asks her to update the database related to...
-
Leadership is an important soft skill for many managers. But can you learn how to become a better leader? Many people think so. Research how to become a better leader on the Internet. What are three...
-
The half-life of a certain brand of ice cream is 180 minutes. a. Find the decay rate of the ice cream. (6 decimal places) b. How long will it take for it to decay to 60% of the original amount. c. At...
-
Purple Professional Services, a division of Alaskan Fuel Company provides various services to the operators of the North Slope oil field in Alaska. Restore The Land is a newer division of Alaskan...
-
Factor completely: 3x + 24x +45x
-
Given a relational schema R with attributes A, B, C, and D, where functional dependencies B-> ACD and C -> D are supposed to hold. (a) What are all the keys in ABCD? (b) Give example of a superkey in...
-
Evaluate each logarithm to four decimal places. log 0.257
-
Why are discounted cash flow methods of making capital budgeting decisions superior to other methods?
-
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and...
-
Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $ 20 per game. Fixed expenses associated with the game total $ 182,000 per...
-
Consider a publicly-held company whose products you are familiar with. Some examples might include: Access the companys public website and search for its most recent annual report. ies: Some pre al...
-
The 2014 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C of this book. LVMH is a Paris-based holding company and one of the worlds largest and best-known...
-
The basic concept behind a learning organization is: A. The popularity to change. B. The people change. C. The adaptation to change. D. The resources of change.
Study smarter with the SolutionInn App