Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Acubra Ltd uses a job-costing system at its Perth plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has two

image text in transcribed
Acubra Ltd uses a job-costing system at its Perth 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 overhead, allocated to jobs based on actual machine-hours, and the Assembly Department overhead allocated to jobs based on actual direct manufacturing labour costs). The 2017 budget for the plant is: Machining Assembly Manufacturing overhead Direct Manufacturing Labour costs Direct Manufacturing Labour hours Machine hours Department Department $1,900,000 $3,000,000 $1,400,000 $2,000,000 200,000 200,000 100,000 50,000 Required (1) During February, the job-cost record for job 501 contained the following Machining Assembly Direct materials used Direct Manufacturing Labour costs Direct Manufacturing Labour hours Machine hours Department Department $45,00070,000 $14,00015,000 1,500 1,000 1,000 2,000 Calculate the total costs of job 501 (2) At the end of 2017, the actual manufacturing overhead costs were $2 100 000 in Machining and 3 700 000 in Assembly. Assume that 55 000 actual machine-hours were used in the Machining Department and that actual direct manufacturing labour costs in the Assembly Department were $220 0000. Calculate the total over-or under-allocated manufacturing overhead

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

Quantitative Financial Risk Management

Authors: Constantin Zopounidis, Emilios Galariotis

1st Edition

1118738187, 978-1118738184

More Books

Students also viewed these Finance questions

Question

Design a training session to maximize learning. page 296

Answered: 1 week ago

Question

Design a cross-cultural preparation program. page 300

Answered: 1 week ago