Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Molding, 38,000 89,000 $ 284,800 $ 2.40 Painting 52,700 39,000 $ 500,650 $ 4.40 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following Information concerning the job: Department Direct labor-hours Molding 70 Painting Machine-hours 400 126 65 Direct materials $ 950 $ 1,120 Direct labor cost $ 720 $ 970 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 27 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.) Molding Department Painting Department Predetermined Overhead Rate per MH per DLH Required 1 Required 2 > Required 1 Required 2 Required 3A Required 38 Compute the total overhead cost applied to Job 205. Note: Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Total overhead cost Required 1 Required 2 Required 3A Required 38 What would be the total manufacturing cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) Molding Department Painting Department Total Direct materials Direct labor Manufacturing overhead Total cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 If the job contained 27 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places, Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit

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

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions