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 predetermined

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:

Department
Molding Painting
Direct labor-hours 39,000 53,700
Machine-hours 87,000 33,000
Fixed manufacturing overhead cost $ 217,500 $ 494,040
Variable manufacturing overhead per machine-hour $ 2.80 -
Variable manufacturing overhead per direct labor-hour - $ 4.80

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
Molding Painting
Direct labor-hours 81 125
Machine-hours 390 72
Direct materials $ 948 $ 1,140
Direct labor cost $ 680 $ 990

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 26 units, what would be the unit product cost?

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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

11th Edition

1264229739, 9781264229734

More Books

Students also viewed these Accounting questions

Question

Describe the contributions of Keller and Marion Breland.

Answered: 1 week ago

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago