Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Boohoohoo Inc. uses a job order costing system.The estimated manufacturing overhead for the year is $12,000,000.The company has decided to allocate the manufacturing overhead to

Boohoohoo Inc. uses a job order costing system.The estimated manufacturing overhead for the year is $12,000,000.The company has decided to allocate the manufacturing overhead to products on the basis of machine hours.The estimated machine hours for the year are 1,000,000 hours.

A. What is the pre-determined manufacturing overhead rate that will be used to applymanufacturing overhead to products?

Job # 999 has accumulated $35,000 of direct materials and $5,000 of direct labour costs.The rate per direct labour hour is $25.To completeJob# 999, 1,100 machine hours were used.

B. How much manufacturing overhead will be applied to Job # 999 ?

C. What is the total manufacturing cost of Job # 999?

Job # 998 has accumulated $22,000 of direct materials and $70,000 of direct labour costs.The rate per direct labour hour is $25.To completeJob#998, 2,100 machine hours were used.

D. How much manufacturing overhead will be applied to Job # 998 ?

E. What is the total manufacturing cost of Job # 998 ?

Job # 997 has accumulated $140,000 of direct materials and $210,000 of direct labour costs.The rate per direct labour hour is $20.To completeJob#997, 30,000 machine hours were used.

G. How much manufacturing overhead will be applied to Job #997 ?

J. What is the total manufacturing cost of Job # 997 ?

At the end of the yearBoohoohoo produced over 750different jobs.Actual manufacturing overhead costs amounted to $12,100,000 instead of the $12,000,000 estimated at the beginning of the year.The actual machine hours amounted to 980,000 hours instead of the 1,000,000 hours estimated at the beginning of the year.

H. How much fixed manufacturing overhead was applied to all 750+ jobs?

I. Was the manufacturing overhead over or under applied?

J. By how much was the manufacturing overhead over or under applied?

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

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

More Books

Students also viewed these Accounting questions

Question

plot the main ways to develop co-operation strategies;

Answered: 1 week ago

Question

=+ How does this differ from the Solow model?

Answered: 1 week ago