DJ Inc. manufactures appliances made to customer specifications and utilizes a job order costing system. Manufacturing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
DJ Inc. manufactures appliances made to customer specifications and utilizes a job order costing system. Manufacturing overhead is currently applied to jobs on the basis of direct labor hours using a plant wide rate. The following estimates were made at the beginning of the year. The controller is considering using ABC for costing their products. Preparation Painting Assembly Total Plant Direct Labor hours 20,000 $200,000 50,000 $600,000 Direct Labor costs Manufacturing Overhead $800,000 $100,000 Activity Sanding Painting Units Assembled Activity Level 100,000 sq. 50,000 Units 800,000 sq. ft. painted ft. sanded assembled Daisy is currently bidding on a job that has the following cost components: Preparation Painting Assembly Direct Materials $10,000 $6,000 $1,000 200 Direct Labor Hours 700 1,200 Direct Labor costs $7,000 $2,000 $12,000 Activity Level 500 sq. ft. 400 sq. ft. 500 units assembled How much overhead would be charged to the job if: a) DJ used ABC costing? b) They used their current methodology? 30,000 $300,000 $500,000 100,000 $1,100,000 $1,500,000 DJ Inc. manufactures appliances made to customer specifications and utilizes a job order costing system. Manufacturing overhead is currently applied to jobs on the basis of direct labor hours using a plant wide rate. The following estimates were made at the beginning of the year. The controller is considering using ABC for costing their products. Preparation Painting Assembly Total Plant Direct Labor hours 20,000 $200,000 50,000 $600,000 Direct Labor costs Manufacturing Overhead $800,000 $100,000 Activity Sanding Painting Units Assembled Activity Level 100,000 sq. 50,000 Units 800,000 sq. ft. painted ft. sanded assembled Daisy is currently bidding on a job that has the following cost components: Preparation Painting Assembly Direct Materials $10,000 $6,000 $1,000 200 Direct Labor Hours 700 1,200 Direct Labor costs $7,000 $2,000 $12,000 Activity Level 500 sq. ft. 400 sq. ft. 500 units assembled How much overhead would be charged to the job if: a) DJ used ABC costing? b) They used their current methodology? 30,000 $300,000 $500,000 100,000 $1,100,000 $1,500,000
Expert Answer:
Answer rating: 100% (QA)
Calculation of the Manufacturing Overhead to be Charged to the Job A DJ Use ABC Costing Activilty Le... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
How much interest would be charged on a line of credit that charges a monthly interest rate of 0.75% if the average daily balance for the month were $26,200?
-
How much interest would be charged on a line of credit that charges a monthly interest rate of 0.96% if the average daily balance for the month were $75,000?
-
The Leblanc Company employs a job order costing system to account for its costs. The company has three production departments. Separate departmental cost driver rates are employed because the demand...
-
Mazlin Limited purchased a machine on account on April 2, 2015, at an invoice price of $360,000. On April 4, it paid $2,000 for delivery of the machine. A one-year, $4,000 insurance policy on the...
-
Data Processors perform credit card services for banks. The company uses an ABC system. The following information applies to the past year: REQUIRED A. Are the activities listed likely to be the only...
-
Define the non-bank financial institutions and how they relate to the financial markets?
-
Explain why your university is considered a system. Give examples of other systems that you know.
-
It was announced today that Florida, Inc., will acquire Menlo Park, Inc. Menlo Park has assets with a gross tax basis of $ 6 million and has $ 1.5 million of liabilities. Prior to being acquired,...
-
Required information [The following information applies to the questions displayed below.] George and Wanda received $30,500 of Social Security benefits this year ($11,700 for George; $18,800 for...
-
After researching the different forms of business organization. Natalie Koebel decides to operate Cookie Creations as a proprietorship. She then starts the process of getting the business running. In...
-
The Merchandise Inventory of Pilipinas Marketing on June 30, 20x1 is P800,000.. Following are the transactions for the month of July 20x1. Purchased merchandise on account from Agoncillo Trading,...
-
Provide Brief Explanation about the statement above. 6.The Internet has eliminated problems of informational asymmetry in health care.
-
Define International Governmental Organizations (IGOs) and Non-Governmental Organizations (NGOs). Identify two IGOs and two NGOs that appear to be efficient in achieving its general goals and...
-
What are struggles over working conditions and also about the surplus product?
-
U se logarithm to solve 6 e ^ ( 9 x + 8 ) + 2 = 7 4
-
A semi-annual coupon Corporate bond is quote das 85.94. This bond has 16 year sti maturity with a coupon rate of 5%. What is the current yield on this bond?
-
Given a sequence x (n), where x (0) = 9 x (1) = 1 x (2) = 0 x (3) = 2 Evaluate its DFT X (K)
-
What kind of financial pressures can an LBO cause?
-
Shown below are selected transactions of Konshocks, a retail store that uses a perpetual inventory system. a. Purchased merchandise on account. b. Recognized the revenue from a sale of merchandise on...
-
Use the information in Exhibit 245 on page 1046 to compute the expected volume variance at 750 units. In Exhibit245 Actual Production (in units) 700 600 800 Overhead applied to work in process using...
-
Two products, wood chips and fiberboard, come out of a joint process costing $420,000 per year. The sales value of the wood chips is $260,000 per year. The sales value of the fiberboard is $780,000...
-
How many structural isomers are there for hydrocarbons that have the molecular formula C 4 H 10 ? (a) none (b) one (c) two (d) three
-
Which contains more hydrogen atomsa five-carbon saturated hydrocarbon molecule or a five-carbon unsaturated hydrocarbon molecule? (a) The unsaturated hydrocarbon has more hydrogen atoms. (b) The...
-
One solution to the problem of our overflowing landfills is to burn plastic objects instead of burying them. What are some advantages and disadvantages of this practice? (a) disadvantage: toxic air...
Study smarter with the SolutionInn App