Juarez Manufacturing uses a job order costing system. It has two departments, Machining & Assembly. Machining...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Juarez Manufacturing uses a job order costing system. It has two departments, Machining & Assembly. Machining is heavily automated while the Assemby department is labour intensive. The company currently uses a plantwide rate based on direct labour cost. However, it is considering changing to departmental rates where the overhead rate will be based on machine hours in the machining department and direct labour hours in the assembly department. The following data is available to you: Budgeted overhead cost Actual overhead cost Budgeted direct labour cost Actual direct labour cost Budgeted machine hours. Actual machine hours Machining Assembly 2,000,000 1,540,000 2,130,000 1,525,000 750,000 2,800,000 725,000 2,890,000 200,000 212,500 50,000 55,000 You will be asked to calculate the bid price for Job DC66. The actual results for this job are: 4 Machining Assembly 12,250 13,950 180 Direct material Direct labour cost Machine hours Total actual selling and administrative expenses for the year were $2,325,000. Required: Take O/H rates to 3 decimal places. 3,350 29,300 75 1 Calculate the total product cost assuming the company uses a plantwide rate based on direct labour cost 2 Calculate the total product cost assuming the company uses departmental rates using the bases detailed at the start of the problem. 3 Calculate the amount of under/over applied overhead from part 2 Prepare the journal entry to close out the balance in the manufacturing O/H account. What would be the effect on income of this entry? 4 Assuming the company uses departmental rates and it uses a 60% markup to calculate bid prices, calculate the bid price for DC66. Juarez Manufacturing uses a job order costing system. It has two departments, Machining & Assembly. Machining is heavily automated while the Assemby department is labour intensive. The company currently uses a plantwide rate based on direct labour cost. However, it is considering changing to departmental rates where the overhead rate will be based on machine hours in the machining department and direct labour hours in the assembly department. The following data is available to you: Budgeted overhead cost Actual overhead cost Budgeted direct labour cost Actual direct labour cost Budgeted machine hours. Actual machine hours Machining Assembly 2,000,000 1,540,000 2,130,000 1,525,000 750,000 2,800,000 725,000 2,890,000 200,000 212,500 50,000 55,000 You will be asked to calculate the bid price for Job DC66. The actual results for this job are: 4 Machining Assembly 12,250 13,950 180 Direct material Direct labour cost Machine hours Total actual selling and administrative expenses for the year were $2,325,000. Required: Take O/H rates to 3 decimal places. 3,350 29,300 75 1 Calculate the total product cost assuming the company uses a plantwide rate based on direct labour cost 2 Calculate the total product cost assuming the company uses departmental rates using the bases detailed at the start of the problem. 3 Calculate the amount of under/over applied overhead from part 2 Prepare the journal entry to close out the balance in the manufacturing O/H account. What would be the effect on income of this entry? 4 Assuming the company uses departmental rates and it uses a 60% markup to calculate bid prices, calculate the bid price for DC66.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
If two orders are selected, find the probability that they are both from Taco Bell. a. Assume that the selections are made with replacement. Are the events independent? b. Assume that the selections...
-
If two orders are selected, find the probability that they are both accurate. a. Assume that the selections are made with replacement. Are the events independent? b. Assume that the selections are...
-
If two orders are selected, find the probability that they are both from Burger King. a. Assume that the selections are made with replacement. Are the events independent? b. Assume that the...
-
Graph the sets of points whose polar coordinates satisfy the equations and inequalitie. 0 , r = 1
-
a. Is it the long-term nominal interest rate or the long-term real interest rate that influences spending decisions? Explain why. b. How does the market determine the long-term nominal interest rate...
-
In criminal trials (e.g., murder, robbery, driving while impaired, etc.) in the United States, it must be proven that a defendant is guilty beyond a reasonable doubt. This can be thought of as a very...
-
Express the following \(n\) th-order differential equation as a system of \(n\) first-order differential equations: \[a_{n} \frac{d^{n} x}{d t^{n}}+a_{n-1} \frac{d^{n-1} x}{d t^{n-1}}+\cdots+a_{1}...
-
Andy Lange, president of the University of South Wisconsin, is concerned with the declining business at the University Book Store. The students tell him that the prices are simply too high. Andy,...
-
QM sells a range of mobile phones. A customer can also purchase an extended warranty when purchasing a mobile phone. The extended warranty takes effect after the manufacturer's warranty ends. The...
-
OMalley plc requires a bank loan for additional working capital to finance expansion. The bank has requested an audited income statement for the year 2022. The accountant for OMalley plc provides you...
-
Johnny turned 45 years old today. He would like to be retired after his 65th birthday and then withdraw $15,000 from his bank account at the end of each month for 20 years. Assume that his account...
-
For the function evaluate the left and right limits as x -2. Provide your answer below: a. lim f(x)= x-2 b. lim f(x)= x--2 2x2+2x if x < -2 f(x) = { -2x-1 if x-2'
-
es Given the function f(x)= 8x + 4 x < 0 8x 8 x 0 Calculate the following values: f(-1) = (0) f(2) =
-
Complete each row of the table below by filling in the missing prefix or missing exponent. 3 1 g = 10 g 1 g = 10 go 1 g = 10 g 1 dg = 10
-
Simplify. 8x - 9(x - 8y)
-
Given the function 5x 4 X 0 f(x) = 5x216 x>0 Calculate the following values: f(1) = f(0) = f(2) =
-
Incorrect 0.00 points out of 1.00 Based on this data from the adjusted trial balance for Vases R Us , what will be the Net Income reported on the Income Statement ?
-
Provide a few individual examples who revealed what aspects of emotional intelligence?
-
Section 2-1 introduced important characteristics of data summarized by the acronym CVDOT. What characteristics do those letters represent, and which graph does the best job of giving us insight into...
-
a. Are any of the three requirements violated? Can the methods of this section be used to test the claim? b. It was stated that we can easily remember how to interpret P-values with this: "If the P...
-
USA Today provided information about a survey (conducted for Donate Life America) of 5100 adult Internet users. Of the respondents, 2346 said they are willing to donate organs after death. In this...
-
Determine the rating of a generator in kVA for a home in order to ensure that the following systems and appliances can be operated in case of a long-term power outage: (a) Air conditioner rated at...
-
A single-phase induction motor draws 250 W at a power factor of pf = 0.80 (lagging) when connected to 120 V, 60 Hz source. Find the capacitance needed to correct the pf of the motor to unity (i.e.,...
-
Determine the capacitance that can increase the overall power factor to 95% lagging when connected in parallel with a load that draws 1.0 kW at a 70% lagging power factor from a 240 V, 60 Hz source.
Study smarter with the SolutionInn App