Question
Euphoria Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The
Euphoria Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted Amounts Department X Department Y Direct labor cost $180,000 $165,000 Factory overhead $225,000 $200,000 Machine-hours 51,000 mh 40,000 mh Actual data for Job #25 Department X Department Y Direct materials requisitioned $15,000 $18,000 Direct labor cost $11,000 $14,000 Machine-hours 5,000 mh 3,000 mh
a. Compute the budgeted factory overhead rate for Department X. b. Compute the budgeted factory overhead rate for Department Y. c. What is the total overhead cost of Job 25? d. If Job 25 consists of 50 units of product, what is the profit per unit if selling price is $2,000 per unit? e. What is the proportion of the direct labor cost incurred with respect to the total cost of the job? f. Should the company go ahead with this job?
14) Constanza Company has the following balances as of the year ended December 31, 2014: Direct Materials Inventory $30,000 Dr. WIP Inventory 69,000 Dr. Finished Goods Inventory 99,000 Dr. Underapplied Factory Department Overhead 8,000 Dr. Cost of Goods Sold 149,000 Dr. Cost of direct materials purchased during 2014 $82,000 Cost of direct materials requisitioned in 2014 74,000 Cost of goods completed during 2014 204,000 Factory overhead applied (120% of direct labor) 96,000 a. Compute beginning direct materials inventory. b. Compute beginning WIP inventory. c. Compute beginning finished goods inventory. d. Compute actual factory overhead incurred.
15) Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $12 per direct labor-hour. The following data are obtained from the accounting records for June 2014: Direct materials $350,000 Direct labor (16,000 hours @ $11/hour) 176,000 Indirect labor 20,000 Plant facility rent 100,000 Depreciation on plant machinery and equipment 40,000 Sales commissions 50,000 Administrative expenses 60,000 a. What actual amount of manufacturing overhead costs was incurred during June 2014? b. What amount of manufacturing overhead was allocated to all jobs during June 2014? c. For June 2014, was manufacturing overhead underallocated or overallocated?
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a To compute the budgeted factory overhead rate for Department X divide the budgeted factory overhead for Department X by the budgeted direct labor co...Get Instant Access to Expert-Tailored Solutions
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