White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Required: Department Cutting Finishing 9,000 61,700 78,000 $ 380,000 $ 3.00 2,100 $ 588,000 0 $4.75 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Direct labor-hours Machine-hours Direct materials Department Cutting Finishing 6 11 90 6 $ 740 $144 $ 370 $264 Direct labor cost Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs given below. Complete this question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. Note: Round your answers to 2 decimal places. Predetermined overhead rate Cutting Department per MH Finishing Department per DLH) Complete this question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Note: Round your intermediate calculations and final answer to 2 decimal places. Total manufacturing cost < Required 1 Required 3> Print Complete this question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Yes No < Required 2 Required 3> White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Required: Department Cutting Finishing 9,000 61,700 78,000 $ 380,000 $ 3.00 2,100 $ 588,000 0 $4.75 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Direct labor-hours Machine-hours Direct materials Department Cutting Finishing 6 11 90 6 $ 740 $144 $ 370 $264 Direct labor cost Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question by entering your answers in the tabs given below. Complete this question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. Note: Round your answers to 2 decimal places. Predetermined overhead rate Cutting Department per MH Finishing Department per DLH) Complete this question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Note: Round your intermediate calculations and final answer to 2 decimal places. Total manufacturing cost < Required 1 Required 3> Print Complete this question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Yes No < Required 2 Required 3>
Expert Answer:
Answer rating: 100% (QA)
1 Compute the predetermined overhead rate for each department Cutting Department Predetermined overh... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
A proposed cost-saving device has an installed cost of $700,000. It is in Class 8 (CCA rate = 20%) for CCA purposes. It will actually function for five years, at which time it will have no value....
-
Slow Steel Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the...
-
Describe the laws that govern e-signatures and any reforms you believe are necessary. o What constitutes an e-signature? o Why is an e-signature necessary in an e-commerce contract (focusing on the...
-
In Exercises use a graphing utility to graph the curve represented by the parametric equations. Indicate the direction of the curve. Identify any points at which the curve is not smooth. Curtate...
-
Let and 2 denote the mean and variance of the random variable X. Determine E[(X )/] and E{[(X )/]2}.
-
1. What are the payback periods for the lawn-to-prairie conversion project, the dock blankets, the T-9 lighting fixtures, and the storm-water project? 2. Calculate the Net Present Value of the...
-
Stillsville Corporation manufactures an electronic switch for dishwashers. The cost base per unit, excluding selling and administrative expenses, is $60. The per unit cost of selling and...
-
Production workers prepare materials requisition forms (four copies) and forward them to the production supervisor for approval. The materials requisition form is then forwarded to stores. In stores,...
-
Suppose that the bacteria in a colony grow unchecked according to the Law of Exponential Change. The colony starts with 1 bacterium and triples in number every 30 minutes. How many bacteria will the...
-
You are a young CPA just starting your own practice in Hollywood, California, after five years experience with a Big 4 firm. You have several connections in the entertainment industry and hope to...
-
Visit the following link and examine the destination website. You are to use your critical thinking skills to evaluate the site. In a discussion board post of 1 to three paragraphs, answer the...
-
An independent auditor has completed substantive tests of balance sheet and income statement accounts, and now plans to begin procedures designed to determine whether there are any loss contingencies...
-
You were engaged to audit the financial statements of Ronlyn Corporation for the year ended June 30, 1999. On May 1, 1999, the corporation borrowed $500,000 from Second National Bank to finance plant...
-
In testing prepaid insurance, how does an auditor address rights and obligations?
-
What sources does an auditor use to test for overstated accounts payable, and how are those sources used?
-
The following covenants are extracted from the indenture of a bond issue. Although the bond due date is 2016, failure to comply with any covenant automatically advances the due date of the loan to...
-
Likert scale of headache severity 0: no headache 1: I notice the headache only when I pay attention to it 2: Mild headache that can be ignored at times 3: Headache is painful, but I can do my job or...
-
Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...
-
According to the survey mentioned in this chapter, what are the most important factors companies consider in establishing transfer prices? What might cause this survey to provide less-than-accurate...
-
Istanbul Company is a manufacturer of computers. Its controller resigned in October 2002. An inexperienced assistant accountant has prepared the following income statement for the month of October...
-
Ever heart Manufacturing Company uses a simple manufacturing accounting sys- tem. At the end ol its fiscal year on August 31, 2002, the adjusted trial balance contains the following accounts....
Study smarter with the SolutionInn App