Question
1. Predetermined OH rates (1pt): Konerko Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the
1. Predetermined OH rates (1pt): Konerko Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 66,000 labor-hours. The estimated variable manufacturing overhead was $8.41 per labor-hour and the estimated total fixed manufacturing overhead was $1,533,180. The actual labor-hours for the year turned out to be 68,400 labor-hours.
Compute the company's predetermined overhead rate for the recently completed year.
Unit Product Cost (1pt): Job #MB56 was recently completed. The following data have been recorded on its job cost sheet:
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Direct materials | $ | 59,400 |
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Direct labor-hours |
| 1,224 | DLHs |
Direct labor wage rate | $ | 15 | per DLH |
Number of units completed |
| 3,600 | units |
The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $35 per direct labor-hour.
Compute the unit product cost that would appear on the job cost sheet for this job.
Applied Overhead Costs (2pts): Riders Corporation uses a job-order costing system with a single plant-wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
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Total machine-hours |
| 40,000 |
Total fixed manufacturing overhead cost | $ | 344,000 |
Variable manufacturing overhead per machine-hour | $ | 3.90 |
Recently, Job M759 was completed. It required 60 machine-hours. Calculate the amount of overhead applied to Job M759.
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