Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

all parts of question b. The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job

all parts of question b. image text in transcribed
image text in transcribed
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $240,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows. Department Department $ 162,000 170,000 $ 546,000 564,000 Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 54,000 12,000 15,000 52,000 55,500 12,700 14,000 54,000 For the coming year, the accountants at St. Falls 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 $21,000 Direct labor cost: Annon 36,000 10,800 Department A (2,400 hr) Department B (800 hr) Machine-hours projected: Department A Department B Units produced 160 1,200 11,000 of 3 Assume the St. Falls plant uses three separate overhead rates to assign overhead costs to jobs. bok b-1. Find the plant wide overhead rate by using expected machine hours. b-2. Find the department overhead rate using expected machine hours for Department A and Department B. b-2. Calculate the projected manufacturing costs for job 110 using the three separate rates computed in b-1 and b 2 ences Complete this question by entering your answers in the tabs below. Req B1 Req B2 Reg B3 Find the plant wide overhead rate by using expected machine hours. (Round your answer to 2 decimal places.) Plantwide overhead rate! I per machine hour

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

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser

12th Canadian edition

ISBN: 133098230, 978-0132791564, 132791560, 978-0133098235

More Books

Students also viewed these Accounting questions

Question

What is a Treasury regulation? Is it binding on the courts?

Answered: 1 week ago

Question

Show the properties and structure of allotropes of carbon.

Answered: 1 week ago