Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

High Desert Potteryworks makes a varlety of pottery products that it sells to retallers, such as Home Depot. The company uses a joborder costing system

image text in transcribedimage text in transcribed High Desert Potteryworks makes a varlety of pottery products that it sells to retallers, such as Home Depot. The company uses a joborder costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Moulding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the company's management made the following estimates: Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the Job: Requlred: 1. Compute the predetermIned overhead rate used during the year in the Moulding Department. Compute the rate used In the Painting Department. (Round "Cost per machine-hour" answer to 2 decimal places.) 2. Compute the total overhead cost applied to Job 205. (Do not round Intermedlate calculations. Enter your answer rounded to the nearest whole dollar.) 3-a. What would be the total cost recorded for Job 205 ? (Do not round Intermedlate calculations. Enter your answers rounded to the nearest whole dollar.) 3-b. If the job contained 70 units, what would be the cost per unit? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) 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 durina the vear: What was the amount of under- or overapplied overhead in each department at the end of the year? (Do not round Intermedlate calculatlons.)

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

The Internal Auditor At Work A Practical Guide To Everyday Challenges

Authors: K. H. Spencer Pickett

1st Edition

0471458392, 978-0471458395

More Books

Students also viewed these Accounting questions

Question

Analyse the various techniques of training and learning.

Answered: 1 week ago