1. Agate Company uses job order costing for each of its three departments. Overhead is applied...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Agate Company uses job order costing for each of its three departments. Overhead is applied to jobs on the basis of Direct Labor in Department D, Labor Hours in Department E, and Machine Hours in Department F. Annual Costs were estimated for each department as follows: Department D $1,200,000 Department E Manufacturing OH Department F $1,500,000 $900,000 Direct Labor Costs $1,500,000 $1,250,000 $450,000 Direct Labor Hours 100,000 125,000 450,000 Machine Hours 400,000 500,000 120,000 At the end of the first month, the following ACTUAL costs and production was shown: Department D Department E $126,000 Department F $78,000 $140,000 Direct Materials Manufacturing OH Direct Labor Costs Direct Labor Hours Machine Hours (a) (b) (c) $99,000 $124,000 $79,000 $120,000 $110,000 $37,500 8,000 11,000 3,500 34,000 45,000 10,400 Compute the pre-determined overhead rate for each department Compute the total manufacturing costs assigned to each department for the month Compute the under- or over-applied overhead for each department for the end of the month 1. Agate Company uses job order costing for each of its three departments. Overhead is applied to jobs on the basis of Direct Labor in Department D, Labor Hours in Department E, and Machine Hours in Department F. Annual Costs were estimated for each department as follows: Department D $1,200,000 Department E Manufacturing OH Department F $1,500,000 $900,000 Direct Labor Costs $1,500,000 $1,250,000 $450,000 Direct Labor Hours 100,000 125,000 450,000 Machine Hours 400,000 500,000 120,000 At the end of the first month, the following ACTUAL costs and production was shown: Department D Department E $126,000 Department F $78,000 $140,000 Direct Materials Manufacturing OH Direct Labor Costs Direct Labor Hours Machine Hours (a) (b) (c) $99,000 $124,000 $79,000 $120,000 $110,000 $37,500 8,000 11,000 3,500 34,000 45,000 10,400 Compute the pre-determined overhead rate for each department Compute the total manufacturing costs assigned to each department for the month Compute the under- or over-applied overhead for each department for the end of the month
Expert Answer:
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials,...
-
For each of its operating segments that require separate disclosure, what information must an enterprise disclose?
-
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. 1. Determine the predetermined overhead rate...
-
Junes Garden Supplies purchases merchandise on account from Lawn Supplies, Inc. The list price is $1,600, with a trade discount of 25 percent, terms 1/10, n/30. Junes Garden Supplies pays the amount...
-
In Exercise, a statistics practitioner examined the relationship between office rents and the citys office vacancy rate. The model appears to be quite poor. It was decided to add another variable...
-
Below are two expressions, the only difference being the presence or absence of parentheses. expression 1: 4+1x (3+5) x (5-2) expression 2: 4+1x3+5x5-2 Calculate the difference between the two...
-
Gavin wants to dig deep into pricing theory, so he decides to work out an application of Eq. (16.11). He suggests to himself that a simple model of interest rates in the risk-neutral world might be...
-
Which of the following phenomena would be either consistent with or a violation of the efficient market hypothesis? Explain briefly. a. Nearly half of all professionally managed mutual funds are able...
-
The following formula for k(t), describes the rate of change as the function of time (t):k(f) = 4e-1. What is the average rate of change between t 2 seconds and t = 5 seconds?
-
The management of Zigby Manufacturing prepared the following balance sheet for March 31. Cash Accounts receivable Raw materials inventory Assets ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities...
-
"A tank is to be constructed to hold 500 cubic meters of oil. The tank is cylindrical in shape (including the base) and the top is a cone with a height equal to its radius. The cost of materials and...
-
Anderson and Rainie (2020) surveyed scholars about the impact of technology on democracy. Identify at least 3 concerns expressed by these experts regarding the future of democracy in a digital world....
-
Economic research finds that some developing countries may depreciate their capital stocks much faster than the U.S. economy. Consider the Solow growth model that we have studied in class....
-
2. In public policy, there is often a trade-off between equity and efficiency. Describe this trade-off and provide examples of how policymakers navigate this delicate balance. How can policies be...
-
The objective of inventory management is to strike a balance between ..... 4 O ordering cost and market share. O company reputation and stability. O inventory investment and customer service. O...
-
Costs for EN-RG's manufacturing and refinement in the US have increased by 50% during the first 12 months. The labor force includes 30,000 people across 7 factories (California; Colorado, Florida;...
-
BUTTERWORTH: A prime mover driver died after being stuck in the driver's cabin, which was crushed by a container, in an incident at the container terminal area here today. State Occupational Safety...
-
Find the intercepts and then graph the line. (a) 2x - 3y = 6 (b) 10 - 5x = 2y
-
At April 30, partners capital balances in SKG Company are: S. Seger $52,000, J. Kensington $54,000, and T. Gomez $18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the SKGA Company...
-
Neff Manufacturing Inc. has beginning work in process $26,000, direct materials used $240,000, direct labor $200,000, total manufacturing overhead $180,000, and ending work in process $32,000.What...
-
Data for Castilla Company are given in BE21-8. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost...
-
A fertilizer producing company purchases nitrates, phosphates, potash, and an inert chalk base and produces four different fertilizers A, B,C, and D. The cost of these nitrates, phosphates, potash,...
-
We are interested to produce $P$ in the reaction $A ightarrow P$ using a continuous reactor at $v=240$ liters/ hr with $C_{A_{0}}=3$ moles/liter. However, it is noticed that there is a second...
-
Heavy fuel oil, initially semisolid at $15^{\circ} \mathrm{C}$ is to be heated and pumped through a $15 \mathrm{~cm}$ diameter (inside) pipe at the rate of $20000 \mathrm{~kg} / \mathrm{h}$. The pipe...
Study smarter with the SolutionInn App