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 such as Home Depot The company uses a job-order costing system

image text in transcribed
image text in transcribed
image text in transcribed
High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot The company uses a job-order costing system in which 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's management made the following estimates: Department Painting 58,800 40,000 $203,000 $527,000 $511,560 Molding 38,000 80,000 $193,000 $277,000 $184,000 $3.20 Direct labor-hours Machine-hours Direct materials cost Direct labor cost Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour $5.20 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 86 380 $938 $740 Painting 131 69 $1,180 $1,010 Direct labor-hours Machine-hours Materials placed into production Direct labor cost Required: 1. Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.) Predetermined overhead rate Molding Department Painting Department per MH per DLH 2. Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.) Total overhead cost 3-a. What would be the total cost recorded for Job 205? (Round "Predetermned overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.) Department Painting Total Molding Direct materials Direct labor Manufacturing overhead Total cost 3-b. If the job contained 34 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.) Unit product cost per unit 4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year Department Molding 27,000 79,800 $167,500 $108,000 $448,500 Painting 57,000 23,800 $423,000 $436,000 $755,300 Direct labor-hours Machine-hours Direct materials cost Direct labor cost Manufacturing overhead cost What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).) Molding Department Painting Department

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

Artificial Intelligence In Accounting And Auditing Creating Value With Al Volume 5

Authors: Miklos A. Vasarhelyi, Dan O'Leary

1st Edition

1558761780, 978-1558761780

More Books

Students explore these related Accounting questions

Question

In Exercise 40 what is the

Answered: 3 weeks ago