chapter 4, question 3

What if the variance is of the opposite sign calculated in Requirement I? Provide the appro- drivers is g appropriate accounts and provid 3. priate adjusting journal entries for Requirements 1 and 2. Cornerstone Exercise 4.3 Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments: OBJECTIVE 1 CORNERSTONE 4.3 Polishing Total Molding 3480,000 $400,000 $80,000 Estimated overhead Direct labor hours (expected and actual) Overl Actity 5,000 15,000 6,000 19,000 25,000 1,000 4,000 Form A Form B 20,000 5,000 Total Machine hours otob Form A Form B Total bahayO tinu bns b3,500 boilggA 3,000 ox 6,500 3,500 120ubos 10,000 Require 1,500 2,000 o Calc 1. Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. 5,000 5,000 Calc 2. 0d 3. Whe eb) acti Corners uod odl Genera Required: 1. Calculate the overhead rates for each department 2. Using departmental rates, assign overhead to the two products and calculate the overhead cos per unit. How does this compare with the plantwide rate unit cost, using direct labor hours 3. What if the machine hours in Molding were 1,200 for Form A and 3.800 for Form B and t Golding account Resou Super Phon Salar direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the over- dohead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcomer Com Requir Cornerstone Exercise 4.4 OBJECTIVE 2 Consumption Ratios Co Larsen, Inc., produces omootuo aid lo anoillo d b Part X12 two types of electronic parts and has provided the following data: NERSTONE 4.4 act Ph Part YK7 Units produced Total