Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Century Pools designs and builds custom pools and spas to the customer's order and uses a job order system. The predetermined overhead rate for the

Century Pools designs and builds custom pools and spas to the customer's order and uses a job order system. The predetermined overhead rate for the current year is 60% of direct labor cost.

At the end of the current year, Century Pools' direct labor cost totaled $170,000 and actual overhead amounted to $105,000.

A pool built for F. Becker required $32,000 of direct materials and $6,500 of direct labor. It was completed in May of the current year.

(a) Compute the total cost of the Becker pool as shown on the job cost sheet at date of completion.

(b) Compute the amount of under- or over-applied manufacturing overhead for Century's operations for the current year.

(c) What disposition is made of over- or under-applied overhead at the end of the year (assume that the amount is not material)?

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

Accounting Information Systems

Authors: Cynthia D Heagy, Constance M Lehmann

7th Edition

1111219516, 978-1111219512

More Books

Students also viewed these Accounting questions

Question

What is the purpose of a warranty period?

Answered: 1 week ago

Question

1. Background knowledge of the subject and

Answered: 1 week ago

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago