Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help me to solve this problem? So that I can compare your solution on mine too. Thank you! Problem 5 Predetermined Factory

image text in transcribed

Can you please help me to solve this problem? So that I can compare your solution on mine too. Thank you!

image text in transcribed
Problem 5 Predetermined Factory Overhead Alleen Co. makes shirts that it sells to retailers. The company uses a job orde costing system in which predetermined overhead rates are used to apply factor overhead cost to jobs. The predetermined rate in the Sewing department based on machine hours and in Cutting department is based on direct labs cost. The following estimates are made at the beginning of the year: Sewing Direct labor hours 24,000 Cutting 120,000 Machine hours 140,000 10,000 Direct Material Cost 1,020,000 1,300,000 Direct Labor Cost 260,000 840,000 FOH cost 1,204,000 1,470,000 Job 101 was started on February 1 and completed on February 25. The company's cost records show the following information concerning the job. Sewing Cutting Direct labor hours 60 170 Machine hours 220 40 Material used 940 664 Direct labor cost 580 1,360 At the end of the year, the records of the company show the actual cost and data for all jobs worked during the year. Sewing Cutting Direct labor hours 20,000 124,000 Machine hours 130,000 18,000 Direct Material Cost 860,000 1,360,000 Direct Labor Cost 216,000 872,000 FOH cost 1,140,000 1,500,000 Required: 1. Compute the factory overhead rate used in the Sewing and Cutting department during the year. 2. Compute the total factory overhead cost applied to job 101. 3. What would be the total cost of job 101? If the job contained 100 units, what would be the unit cost of the job 101? 4. How much is the over or under-applied factory overhead in each department at the end of the year

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

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

3rd edition

9781337909402, 978-1337788281

More Books

Students also viewed these Accounting questions

Question

Claim: p Answered: 1 week ago

Answered: 1 week ago

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago

Question

Explain the sources of recruitment.

Answered: 1 week ago

Question

Differentiate sin(5x+2)

Answered: 1 week ago

Question

Compute the derivative f(x)=1/ax+bx

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago