Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Extrom Inc. has a job-order costing system. The company's fiscal year starts on January 1 and ends on December 31. The company uses predetermined overhead

image text in transcribedimage text in transcribed

Extrom Inc. has a job-order costing system. The company's fiscal year starts on January 1 and ends on December 31. The company uses predetermined overhead rates to allocate manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department C is based on machine hours, and the rate in Department D is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year: Department C Department D Machine hours 85,500 288,000 Direct labour-hours 41,600 68,700 Direct materials cost $195,000 $348,000 Direct labour cost $264,000 $606,000 Manufacturing overhead cost $429,000 $758,000 Job 284 entered into production on March 9 and was completed on October 3. The company's cost records show the following information about the job: Department C Department D Machine hours 350 295 Direct labour-hours 149 105 Direct materials cost $605 $750 Direct labour cost $905 $1,830 At the end of the year, the records of Extrom Inc. showed the following actual cost and operating data for all jobs worked on during the fiscal year: Department C Department D Machine hours 80,000 315,300 Direct labour-hours 36,900 61,600 Direct materials cost $202,000 $277,000 Direct labour cost $262,000 $599,000 Manufacturing overhead cost $507,000 $765,000 1. What is the predetermined overhead rate for Department C (expressed in dollars, rounded to 2 decimals)? (2 marks) Number 2. What is the predetermined overhead rate for Department D (expressed in dollars, rounded to 2 decimals)? (2 marks) Number 3. What is the total overhead cost allocated to Job 284 (rounded to the nearest dollar)? (2 marks) Number 4. Were Department C's overhead costs over or underapplied? (1 mark) Department C's overhead costs for the year were overapplied. Department C's overhead costs for the year were underapplied. 5. How much were Department C's overhead costs over or underapplied by? Enter your answer as a positive number. Make sure you carry through all digits from previous responses and round your final response to the nearest dollar. (1 mark) Number 6. Were Department D's overhead costs over or underapplied? (1 mark) Department D's overhead costs for the year were overapplied. Department D's overhead costs for the year were underapplied. 7. How much were Department D's overhead costs over or underapplied by? Enter your answer as a positive number. Make sure you carry through all digits from previous responses and round your final response to the nearest dollar. (1 mark) Number

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

Advances In Quantitative Analysis Of Finance And Accounting - New Series (Vol. 2)

Authors: Lee Cheng Few

1st Edition

9812561641, 9789812561640

More Books

Students also viewed these Accounting questions

Question

How did Spinoza and Descartes challenge beliefs in witchcraft?

Answered: 1 week ago

Question

a. What aspects of the situation are under your control?

Answered: 1 week ago