Example 1: Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other Hosing orthead rats: costs related to Adams were: Example 3: Carolin Chemicals produces a range of chemical products for industries on getting bulk orders . It manufacturing process are direct in nature, but manufacturing overhead is allocated to different uses a job-costing system to calculate the cost of a particular job. Materials and labors used in the jobs using direct manufacturing labor costs. Carolin provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2017 $2,750,000 1,830,000 3,294,000 Actual Results for 2017 $3,000,000 2,250,000 3,780,000 Required: 1. Compute the actual and budgeted manufacturing overhead rates for 2017 2. During March, the job-cost records for Job 635 contained the following information: Direct materials used $73,500 Direct manufacturing labor costs $51,000 Compute the cost of Job 635 using (a) actual costing and (b) normal costing. budgeted. Example 1: Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other Hosing orthead rats: costs related to Adams were: Example 3: Carolin Chemicals produces a range of chemical products for industries on getting bulk orders . It manufacturing process are direct in nature, but manufacturing overhead is allocated to different uses a job-costing system to calculate the cost of a particular job. Materials and labors used in the jobs using direct manufacturing labor costs. Carolin provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2017 $2,750,000 1,830,000 3,294,000 Actual Results for 2017 $3,000,000 2,250,000 3,780,000 Required: 1. Compute the actual and budgeted manufacturing overhead rates for 2017 2. During March, the job-cost records for Job 635 contained the following information: Direct materials used $73,500 Direct manufacturing labor costs $51,000 Compute the cost of Job 635 using (a) actual costing and (b) normal costing. budgeted
