Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 Required information [The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located

image text in transcribedimage text in transcribed
6 Required information [The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job Part 6 of 6 order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $400,000. During the past year, actual plantwide overhead was $387,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. eBook Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 108,800 $ 473,000 Actual department overhead 125, 000 485,000 Print Expected total activity: Direct labor hours 54, 000 25, 000 Machine-hours 17, 000 55 , 000 Actual activity: References Direct labor hours 56, 500 24, 100 Machine-hours 17, 800 57,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. Direct materials $22, 400 Direct labor cost: Department A (3,000 hr) 45,000 Department B (1, 800 hr) 11, 600 Machine-hours projected: Department A 250 Department B 1, 200 Units produced 9,000 f. Would your response to part e change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $33,000?f. Would your response to part e change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $33,000? Incremental profit earned by producing the other job 33,000 Incremental cost of buying the parts from the subcontractor Increase in total profits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

5th Edition

126078035X, 978-1260780352

More Books

Students also viewed these Accounting questions