ACC 6400 Management Accounting Seminar By Dr. Hung Chan 3) Determine the cost of jobs still in production reported on March 31 general ledger. San Diego Fashions. Inc. (SDF), a local company which uses a job-order normal costing system, had two jobs in process at the start of 2023: job no. 101 ($168,000) and job no. 102 ($107,000). The 4) Assume SDF's budgeted MOH was $1,406,000, how much was the manufacturing overhead following information is available: under- or overapplied for the first quarter of 2023? What would you recommend SDF to account for the amount? Why? How would it affect your profitability analysis of the Job no. a) The company applies manufacturing overhead on the basis of machine hours. SDF has budgeted 101? 31,800 machine hours to be used consistently in 2023. Data concerning machine hours and manufacturing overhead incurred during 2022 follow. 5) Should SDF use its 2023 budgeted MOH cost or its 2022 incurred MOH cost as a benchmark to evaluate its managers' performance in controlling 2023 MOH cost variance? Month Machine hours MOH Why? January 3,800 $138,700 February 3.600 137,300 6) Can you recommend a better benchmark for MOH variance analysis and control? Explain a March 2.300 103,250 pros of your recommended benchmark. April 2,050 100,800 May 2,20 110,100 June 2,40 110,550 July 2,000 110,000 August 2,800 120.400 September 2.600 120,12 October 2,100 100,200 November 2,20 112,350 December 2,400 115,350 b) The company started/worked on four jobs during the first quarter of 2023. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. Direct Materia Direct Labor Machine Hours 101 $42,000 $70,000 ? 102 44,000 2,400 10 88,000 130,000 3,000 104 30,000 17,600 2,000 c) Manufacturing overhead during the first quarter included charges for depreciation ($68,000), indirect labor ($120,000), indirect materials used ($10,000), and other factory costs ($279,000). d) San Diego Fashions completed job no. 101 and job no. 102. Job no. 101 was sold for $425,400 on account, reporting a gross margin of $19,400 for the firm. Required (show your work to receive partial credit): 1) Based on SDF's 2022 MOH cost data, what is your estimated monthly fixed MOH cost and variable MOH cost per machine hours respectively? What cost behavior did the SDF's 2022 MOH cost demonstrate? 2) What is your estimate of SDF's 2023 budgeted MOH based on 2022 incurred MOH data? Discuss two limitations of your estimate