Deep Ocean Potteryworks makes a variety of pottery products that it sells to retailers such as...
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Deep Ocean Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job- order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Moulding Department is based on machine hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the company's management made the following estimates: Direct labour hours Machine hours Direct materials cost Direct labour cost Manufacturing overhead cost Department Moulding Painting 15,500 72,800 $ 524,000 $ 155,000 67,000 9,400 $664,000 $ 448,000 $ 640,640 $ 851,200 Job 210 was started on July 1 and completed on July 10. The company's cost records show the following information concerning the Job: Direct labour hours Machine hours Materials placed into production Direct labour cost Department Moulding 50 Painting 110 $500 $310 80 40 $380 $600 Required: 1. Compute the predetermined overhead rate used during the year in the Moulding Department. Compute the rate used in the Painting Department. (Round "Cost per machine hour" answer to 2 decimal places.) Moulding Department Painting Department Predetermined Overhead Rate per machine hour % of direct labour cost 2. Compute the total overhead cost applied to Job 210. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar.) Total overhead cost 3-a. What would be the total cost recorded for Job 210? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.) Direct materials Direct labour Manufacturing overhead applied Total cost Department Moulding Painting Total $ 0 $ 0 S Deep Ocean Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job- order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Moulding Department is based on machine hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the company's management made the following estimates: Direct labour hours Machine hours Direct materials cost Direct labour cost Manufacturing overhead cost Department Moulding Painting 15,500 72,800 $ 524,000 $ 155,000 67,000 9,400 $664,000 $ 448,000 $ 640,640 $ 851,200 Job 210 was started on July 1 and completed on July 10. The company's cost records show the following information concerning the Job: Direct labour hours Machine hours Materials placed into production Direct labour cost Department Moulding 50 Painting 110 $500 $310 80 40 $380 $600 Required: 1. Compute the predetermined overhead rate used during the year in the Moulding Department. Compute the rate used in the Painting Department. (Round "Cost per machine hour" answer to 2 decimal places.) Moulding Department Painting Department Predetermined Overhead Rate per machine hour % of direct labour cost 2. Compute the total overhead cost applied to Job 210. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar.) Total overhead cost 3-a. What would be the total cost recorded for Job 210? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.) Direct materials Direct labour Manufacturing overhead applied Total cost Department Moulding Painting Total $ 0 $ 0 S
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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