PROBLEM $17\mathrm{.}4$A

Job Order Costing: A Comprehensive Problem

Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In the Fabrication Department, overhead is applied on the basis of machine$-$hours, and in the Installation Department, it is applied on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates.

$$ Fabrication Installation

Direct labor $$132,000$ $$300,000$

Manufacturing overhead $$600,000$ $$180,000$

Machine$-$hours $8,0001,200$

Direct labor hours $6,00015,000$

Production of a $5,350$ linear$-$foot irrigation system for Thompson Orchards $($job no$.399)$ was started and completed in March of the current year. Cost records for this job reveal the following information.

$$ Fabrication Installation

Job no$.399(5,350$ linear$-$foot system$)$: $$

Cost of materials used on job $$7,200$ $$3,600$

Direct labor cost $$1,800$ $$9,600$

Direct labor hours $80450$

Machine$-$hours $6020$

page $802$

Instructions

Determine the overhead rate that should be used for each department in applying overhead costs to job no$.399.$

What was the total cost of job no$.399,$ and what was its cost per linear$-$foot?

Prepare the journal entries required to record the sale $($on account$)$ of job no$.399$ to Thompson Orchards. The total sales price was $$49,000.$

Assume that actual overhead costs for the year were $$612,000$ in the Fabrication Department, and $$175,000$ in the Installation Department. Assume also that actual machine$-$hours in the Fabrication Department were $8,200,$ and actual direct labor hours in the Installation Department were $14,500$ during the year. On the basis of this information, determine the over$-$ or underapplied overhead in each department for the year. PROBLEM $17\mathrm{.}4$A

Job Order Costing: A Comprehensive Problem

Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In the Fabrication Department, overhead is applied on the basis of machine$-$hours, and in the Installation Department, it is applied on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates.

Production of a $5,350$ linear$-$foot irrigation system for Thompson Orchards $($job no$.399)$ was started and completed in March of the current year. Cost records for this job reveal the following information.

Instructions

a$.$ Determine the overhead rate that should be used for each department in applying overhead costs to job no$.399.$

b$.$ What was the total cost of job no$.399,$ and what was its cost per linear$-$foot?

c$.$ Prepare the journal entries required to record the sale $($on account$)$ of job no$.399$ to Thompson Orchards. The total sales price was $\backslash (\backslash$$ $49,000\backslash ).$

d$.$ Assume that actual overhead costs for the year were $\backslash (\backslash$$ $612,000\backslash )$ in the Fabrication Department, and $\backslash (\backslash$$ $175,000\backslash )$ in the Installation Department. Assume also that actual machine$-$hours in the Fabrication Department were $8,200,$ and actual direct labor hours in the Installation Department were $14,500$ during the year. On the basis of this information, determine the over$-$ or underapplied overhead in each department for the year. PROBLEM $17\mathrm{.}4$A

Job Order Costing: A Comprehensive Problem

Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In the Fabrication Department, overhead is applied on the basis of machine$-$hours, and in the Installation Department, it is applied on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates.

Production of a $5,350$ linear$-$foot irrigation system for Thompson Orchards $($job no$.399)$ was started and completed in March of the current year. Cost records for this job reveal the following information. PROBLEM $17\mathrm{.}4$A

Job Order Costing: A Comprehensive Problem

Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In the Fabrication Department, overhead is applied on the basis of machine$-$hours, and in the Installation Department, it is applied on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates.

Production of a $5,350$ linear$-$foot irrigation system for Thompson Orchards $($job no$.399)$ was started and completed in March of the current year. Cost records for this job reveal the following information.

Instructions

a$.$ Determine the overhead rate that should be used for each department in applying overhead costs to job no$.399.$

b$.$ What was the total