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I need help on completing this homework, I got stuck. Thank you P4-14- 25 PUNTOS: Determining overhead rates, using direct labor cost, direct labor hour,

I need help on completing this homework, I got stuck. Thank you

P4-14- 25 PUNTOS:

Determining overhead rates, using direct labor cost, direct labor hour, and machine hour methods; determining job cost; computing underapplied and over applied overhead

College Station Manufacturing Inc. is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, $80,000; estimated materials costs, $60,000; estimated direct labor costs, $70,000; estimated direct labor hours, 15,000; estimated machine hours, 30,000; work in process at the beginning of the month, none.

The actual factory overhead incurred for November was $80,000, and the production statistics on November 30 are as follows:

Job

Materials Costs

Direct Labor Costs

Direct Labor Hours

Machine Hours

Date Jobs Completed

101

$7,000

$8,000

2,000

4,000

Nov. 10

102

9,000

14,000

3,000

4,200

Nov. 11

103

10,000

15,500

3,500

5,000

Nov. 12

104

11,000

17,600

3,600

4,400

In process

105

12,000

31,000

5,500

7,500

Nov. 25

106

13,000

4,400

1,400

2,500

In process

Total

$62,000

$90,500

19,000

27,600

Required:

Compute the predetermined rate, based on the following:

Direct labor cost

80,000/70,000= 1.14

Direct labor hours

80,000/15,000= 5.33

Machine hours 80,000/30,000= 2.66

Using each of the methods, compute the estimated total cost of each job at the end of the month.

Determine the under- or overapplied factory overhead, in total, at the end of the month under each of the methods.

Which method would you recommend? Why?

Compute the Predetermined Rates

Direct labor cost rate

Direct labor hour rate

Machine hour rate

2. Total cost of Jobs

Job 101

Job 102

Job 103

Job 104

Job 105

Job 106

Total

Materials

7,000

9,000

10,000

11,000

12,000

13,000

62,000

Direct labor

8,000

14,000

15,500

17,600

31,000

4,400

90,500

Total prime cost

15,000

23,000

25,500

28,600

43,000

17,400

152,500

Applied overhead: Direct labor costs

9,120

15,960

17,670

20,064

35,340

5,016

103,170

Direct labor hour

10,660

15,990

18,655

19,188

29,315

7,462

101,270

Machine hour

5,320

7,980

9,310

9,576

14,630

3,724

50,540

Total cost using direct labor cost

24,120

38,960

43,170

48,664

78,340

22,416

255,670

Total cost using direct labor hour

25,660

38,990

44,155

47,788

72,315

24,862

253,770

Total cost using machine hour

20,320

30,980

34,810

38,176

57,630

21,124

203,040

direct labor hours

machine hours

Overhead Rates
Factor distribution- Labor cost
Factor distribution- Labor hours
Factor distribution- Machine hours

3. Under-and overapplied overhead:

Actual factory overhead Direct Labor Cost Direct Labor Hours Machine hours
Applied overhead
Direct labor cost
Direct labor hour
Machine hour
Underapplied(overapplied)

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