Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 2-13 (Algo) Departmental Predetermined Overhead Rates (L02-1, LO2-2, LO2.4) White Company has two departments, Cutting and Finishing. The company uses a job-order costing system

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 2-13 (Algo) Departmental Predetermined Overhead Rates (L02-1, LO2-2, LO2.4) White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department cutting Finishing Direct labor-hours 7,400 82,000 Machine-hours 60,400 3,500 Total fixed manufacturing over head cost $ 380,000 5 510,000 Variable manufacturing overhead per machine-hour $ 4.00 Variable manufacturing overhead per direct labor-hour $ 4.75 Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours 5 18 Machine-hours BB 5 Direct materials $ 710 $ 350 Direct labor cont 5. 120 $ 432 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 tomheducation.com M Question WeChater 2 Cue ter 26 Help Save & E Submit Check my werk Required: 1. Compute the predetermined overhead rate for each department. 2. The Job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours 5 18 Machine-hours 5 Direet materiale 1710 $ 150 Direct labor cost $ 120 #432 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rote based on direct labor hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Cutting Department Finishing Department Predetermined overhead rate 7.64 per MH 11.00 per DLH Required 2 > 5 He overnead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours 18 Machine-hours 88 Direct materials $ 710 $ 350 Direct labor cost $ 120 $ 432 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost ass 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used predetermined overhead rate based on direct labor-hours, rather than using departmental rates? 5 Complete the question by entering your answers in the tabs given below. ces Required 1 Required 2 Required 3 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost $ 176

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_2

Step: 3

blur-text-image_3

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 For Managers Interpreting Accounting Information For Decision Making

Authors: Paul M. Collier

1st Edition

0470845023, 9780470845028

More Books

Students also viewed these Accounting questions

Question

What does the empirical evidence tell us about the two theories?

Answered: 1 week ago

Question

Do the measurement items or tools have content relevance?

Answered: 1 week ago