Giannacopoulos SA uses a job-costing system at its Korinthos plant. The plant has a Machining Department and

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Giannacopoulos SA uses a job-costing system at its Korinthos plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department, allocated using actual machine-hours, and the Assembly Department, allocated using actual labour cost). The 2015 budget for the plant is as follows:
Giannacopoulos SA uses a job-costing system at its Korinthos plant.

Required
1. Present an overview diagram of Giannacopoulos's job-costing system. What is the budgeted overhead rate that should be used in the Machining Department? In the Assembly Department?
2. During the month of February, the cost record for Job 494 shows the following:

Giannacopoulos SA uses a job-costing system at its Korinthos plant.

What is the total manufacturing overhead allocated to Job 494?
3. Balances at the end of 2015 are as follows:
Machining Assembly
Department Department
Manufacturing overhead incurred................‚¬2 100 000............‚¬3 700 000
Direct manufacturing labour cost............................-.............‚¬2 200 000
Machine-hours............................................55 000........................-
Calculate the under- or overallocated manufacturing overhead for each department.

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Related Book For  book-img-for-question

Management and Cost Accounting

ISBN: 978-1292063461

6th edition

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

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