Delmar Ltd. manufactures industrial kitchen equipment. Delmar uses a normal job-costing system to allocate manufacturing overhead cost,
Question:
The budgeted manufacturing overhead costs and machine hours were $126,000 and 5,600 hours. The actual machine hours worked was 6,200 hours.
REQUIRED
A. Calculate the budgeted overhead rate per machine hour and the actual overhead rate per machine hour?
B. What was the manufacturing overhead amount applied to the work-in-process? Was the amount over- or underapplied?
C. The material requisition records showed that $94,500 of materials was used in the production. What is the amount of material purchased?
D. Prepare all journal entries related to the production, including the year-end adjustment for over- or underapplied manufacturing overhead.
E. Prepare a schedule of cost of goods manufactured, using the amount of actual manufacturing overhead incurred. What is the amount of cost of goods sold after the adjustment?
Step by Step Answer:
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook