Question
1. Determine the overhead rate that should be used for each department in applying overhead costs to job no. 399. (Round your answers to 2
1. Determine the overhead rate that should be used for each department in applying overhead costs to job no. 399. (Round your answers to 2 decimal places.)
Department A overhead application rate per machine-hour =
Department B overhead application rateper direct labor hour =
2. What is the total cost of job no. 399, and what is the unit cost of the product manufactured on this production order?
3. Prepare the journal entries required to record the sale (on account) of 1,000 of the tachometers to SkiCraft Boats. The total sales price was $19,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Assume that actual overhead costs for the year were $517,000 in Department A and $424,400 in Department B. Actual machine-hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. On the basis of this information, determine the over- or underapplied overhead in each department for the year.
Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of machine-hours, and in Department B, 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 Department A Department B Direct labor Manufacturing overhead Machine-hours Direct labor hours $ 420,000 540,000 18,000 28,000 $300,000 $412,500 1,900 25,000 Production of 4,000 tachometers (job no. 399) was started in the middle of January and completed two weeks later. The cost records for this job show the following information Department A Department B Job no. 399 (4,000 units of product): Cost of materials used on job Direct labor cost Direct labor hours Machine-hours $ 6,800 8,100 540 250 $ 4,500 7,200 600 100 Required a. Determine the overhead rate that should be used for each department in applying overhead costs to job no. 399 b. What is the total cost of job no. 399, and what is the unit cost of the product manufactured on this production order? c. Prepare the journal entries required to record the sale (on account) of 1,000 of the tachometers to SkiCraft Boats. The total sales price was $19,500 d. Assume that actual overhead costs for the year were $517,000 in Department A and $424,400 in Department B. Actual machine- hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. On the basis of this information, determine the over- or underapplied overhead in each department for the yearStep by Step Solution
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