Wai Ming Company (Wai Ming') is a typical electronics manufacturing company in Hong Kong. Wai Ming...

  

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Wai Ming Company ("Wai Ming') is a typical electronics manufacturing company in Hong Kong. Wai Ming uses a job-costing system in its plant/factory in Shatin. The plant has a Machining Department and a Finishing Department. Wai Ming uses normal costing with two direct-cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department, with machine-hours as the allocation base; and the Finishing Department, with direct manufacturing labour costs as the allocation base). Budget information for the year of 2022 for the plant is as follows: Machining Finishing Department Department Manufacturing overhead costs Direct manufacturing labour costs Direct manufacturing labour-hours Machine-hours Required: a Calculate the budgeted overhead rates in the Machining Department and the Finishing Department. (4 marks) $280,000 $100,000 Direct materials used Direct manufacturing labour costs Direct manufacturing labour-hours Machine-hours 4,000 2,500 b During the month of January 2022, the job cost record for a job (Job 888) received from a client showed the following: $40,000 $850 $75,000 $50,000 Machining Finishing Department Department 35 280 2,000 1,100 $6,000 $1,500 $252,000 $110,000 2,300 80 30 Determine the total manufacturing overheads allocated to Job 888. (5 marks) c Assuming that Job 888 consisted of 200 units of the product, what is the cost per unit? (7 marks) d The actual amounts at the end of 2022 are as follows: Machining Finishing Department Department Manufacturing overheads incurred Direct manufacturing labour costs Machine-hours Show and explain the reasons underlying the under- or over- allocated manufacturing overheads for each department and for the plant as a whole. (9 marks) $70,000 $42,000 1,060 Wai Ming Company ("Wai Ming') is a typical electronics manufacturing company in Hong Kong. Wai Ming uses a job-costing system in its plant/factory in Shatin. The plant has a Machining Department and a Finishing Department. Wai Ming uses normal costing with two direct-cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department, with machine-hours as the allocation base; and the Finishing Department, with direct manufacturing labour costs as the allocation base). Budget information for the year of 2022 for the plant is as follows: Machining Finishing Department Department Manufacturing overhead costs Direct manufacturing labour costs Direct manufacturing labour-hours Machine-hours Required: a Calculate the budgeted overhead rates in the Machining Department and the Finishing Department. (4 marks) $280,000 $100,000 Direct materials used Direct manufacturing labour costs Direct manufacturing labour-hours Machine-hours 4,000 2,500 b During the month of January 2022, the job cost record for a job (Job 888) received from a client showed the following: $40,000 $850 $75,000 $50,000 Machining Finishing Department Department 35 280 2,000 1,100 $6,000 $1,500 $252,000 $110,000 2,300 80 30 Determine the total manufacturing overheads allocated to Job 888. (5 marks) c Assuming that Job 888 consisted of 200 units of the product, what is the cost per unit? (7 marks) d The actual amounts at the end of 2022 are as follows: Machining Finishing Department Department Manufacturing overheads incurred Direct manufacturing labour costs Machine-hours Show and explain the reasons underlying the under- or over- allocated manufacturing overheads for each department and for the plant as a whole. (9 marks) $70,000 $42,000 1,060

Answer rating: 100% (QA)

a To calculate the budgeted overhead rates in the Machining Department and the Finishing Department you can use the following formula for each departm... View the full answer