Data Allocation base Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base Machine-hours $300,000 75,000 machine-hours $290,000 68,000 machine-hours Enter a formula into each of the cells marked with a ? below Computation of the predetermined overhead rate Estimated manufacturing overhead cost Estimated total amount of the allocation base Predetermined overhead rate ? machine-hours ? per machine-hour Computation of underapplied or overapplied manufacturing overhead Actual manufacturing overhead cost Manufacturing overhead cost applied to Work in Process during the year: Predetermined overhead rate ? per machine-hour ? machine-hours Actual total amount of the allocation base Manufacturing overhead applied Underapplied (overapplied) manufacturing overhead 000,025 OPE SSA 29ib 1odal 55340 Divine Bath Works is a leader in the bath fixtures industry, rising to prominence with the introduction of over-the-counter sinks. The following data pertain to September, the last month of Divine's fiscal year. 29 Type of Inventory Balance as of September 1 IstoT Materials (direct and indirect) $ 28,100 $124,320 $245,000 Work in Process dsiotb 0 08 Finished Goods The Work in Process Inventory on 9/1 consisted of one job, Job X, for 700 units of Model 00, an oval, over-the-counter sink. The Finished Goods Inventory on 9/1 comprised the following: bric Model Number (description) 00 (Oval, over-the counter) RI (Round, in-the counter) OI (Oval, in-the counter) Quantity Cost per unit Total Cost 100 $320.00 $32,000 $78,900 $134,100 $245,000 400 $197.25 450 $298.00 Total Divine uses a "normal" costing system, combined with the FIFO inventory flow assumption, to cost its inventories. That is, Divine traces actual materials and labor costs to individual jobs. It allocates manufacturing overhead using a predetermined overhead rate computed at the start of the year. Divine allocates overhead using direct labor hours as the allocation basis (cost driver). del Divine prepared the following annual overhead cost budget at the start of the present year. Overhead item Budgeted amount $290,000 422,340 228,520 425,800 136,740 185,000 $1,688,400 Supplies Indirect Labor Supervision Depreciation Utilities Factory Rent Total Divine also informs you that it had budgeted for 80,400 direct labor hours at the start of the year. As of September 1, the company had incurred 75,315 actual direct labor hours and spent $1,569,450 in actual overhead costs. we bought During September, Divine purchased $112,340 of direct materials and $26,430 of indirect materials. The following table shows the requisition of direct materials during September: Job number K B. Model 00 RO RI Description Oval, OTC Round, OTC 200 H $24,000 Oval, in sink Round, in sink Units 700 500 700 Direct Materials $58,000 $22,000 E $11,450 45450 (8) Divine consumed $22,000 of indirect materials during September. Divine incurred the following labor costs during September. Item Job Hours Amount Indirect Labor $32,000 P $34,560 $43,740 $29,365 $15,210 Direct Labor 1,920 422875 2,430 1,678 K 845 6873 The following comprises actual overhead costs (other than supplies and indirect labor) incurred during the month of September. Actual amount (for September) $18,400 $32,650 $ 8,900 $15,400 75 350 Cost Item Supervision Depreciation Utilities Factory rent Finally, Divine completed all jobs except Job B during September. It also sold the following items during the month of September. Model 00 750 RI Units Sold OI RO 150 200 400 REQUIRED: 1. Compute the amount of under-over applied overhead for the month of September and the year ended September 30. (10 pts.) September: Year: 2. Compute the ending balance of the Work in Process Inventory account at 9/30: (5 pts.) 3. Calculate the ending balance of Finished Goods Inventory for each model at 9/30 (use FIFO method). (20 pts.) Model 00: Model RI: Model OI: Model RO: vo fsutbs eeengnce prilwle 4. Prepare an Income Statement for the month ended 9/30 (Assume that Sales Revenue will be 25% greater than total Cost of Goods Sold, operating expenses are $20,000 and the company's income tax rate is 20%). (10 pts.) 5. Team Participation Points: these will be awarded by your teammates (15 pts.) admoto pobuo ecowo Tohoh Data Allocation base Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base Machine-hours $300,000 75,000 machine-hours $290,000 68,000 machine-hours Enter a formula into each of the cells marked with a ? below Computation of the predetermined overhead rate Estimated manufacturing overhead cost Estimated total amount of the allocation base Predetermined overhead rate ? machine-hours ? per machine-hour Computation of underapplied or overapplied manufacturing overhead Actual manufacturing overhead cost Manufacturing overhead cost applied to Work in Process during the year: Predetermined overhead rate ? per machine-hour ? machine-hours Actual total amount of the allocation base Manufacturing overhead applied Underapplied (overapplied) manufacturing overhead 000,025 OPE SSA 29ib 1odal 55340 Divine Bath Works is a leader in the bath fixtures industry, rising to prominence with the introduction of over-the-counter sinks. The following data pertain to September, the last month of Divine's fiscal year. 29 Type of Inventory Balance as of September 1 IstoT Materials (direct and indirect) $ 28,100 $124,320 $245,000 Work in Process dsiotb 0 08 Finished Goods The Work in Process Inventory on 9/1 consisted of one job, Job X, for 700 units of Model 00, an oval, over-the-counter sink. The Finished Goods Inventory on 9/1 comprised the following: bric Model Number (description) 00 (Oval, over-the counter) RI (Round, in-the counter) OI (Oval, in-the counter) Quantity Cost per unit Total Cost 100 $320.00 $32,000 $78,900 $134,100 $245,000 400 $197.25 450 $298.00 Total Divine uses a "normal" costing system, combined with the FIFO inventory flow assumption, to cost its inventories. That is, Divine traces actual materials and labor costs to individual jobs. It allocates manufacturing overhead using a predetermined overhead rate computed at the start of the year. Divine allocates overhead using direct labor hours as the allocation basis (cost driver). del Divine prepared the following annual overhead cost budget at the start of the present year. Overhead item Budgeted amount $290,000 422,340 228,520 425,800 136,740 185,000 $1,688,400 Supplies Indirect Labor Supervision Depreciation Utilities Factory Rent Total Divine also informs you that it had budgeted for 80,400 direct labor hours at the start of the year. As of September 1, the company had incurred 75,315 actual direct labor hours and spent $1,569,450 in actual overhead costs. we bought During September, Divine purchased $112,340 of direct materials and $26,430 of indirect materials. The following table shows the requisition of direct materials during September: Job number K B. Model 00 RO RI Description Oval, OTC Round, OTC 200 H $24,000 Oval, in sink Round, in sink Units 700 500 700 Direct Materials $58,000 $22,000 E $11,450 45450 (8) Divine consumed $22,000 of indirect materials during September. Divine incurred the following labor costs during September. Item Job Hours Amount Indirect Labor $32,000 P $34,560 $43,740 $29,365 $15,210 Direct Labor 1,920 422875 2,430 1,678 K 845 6873 The following comprises actual overhead costs (other than supplies and indirect labor) incurred during the month of September. Actual amount (for September) $18,400 $32,650 $ 8,900 $15,400 75 350 Cost Item Supervision Depreciation Utilities Factory rent Finally, Divine completed all jobs except Job B during September. It also sold the following items during the month of September. Model 00 750 RI Units Sold OI RO 150 200 400 REQUIRED: 1. Compute the amount of under-over applied overhead for the month of September and the year ended September 30. (10 pts.) September: Year: 2. Compute the ending balance of the Work in Process Inventory account at 9/30: (5 pts.) 3. Calculate the ending balance of Finished Goods Inventory for each model at 9/30 (use FIFO method). (20 pts.) Model 00: Model RI: Model OI: Model RO: vo fsutbs eeengnce prilwle 4. Prepare an Income Statement for the month ended 9/30 (Assume that Sales Revenue will be 25% greater than total Cost of Goods Sold, operating expenses are $20,000 and the company's income tax rate is 20%). (10 pts.) 5. Team Participation Points: these will be awarded by your teammates (15 pts.) admoto pobuo ecowo Tohoh