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I put the answers for A-E. I just need F The Gilster Company, a machine tooling firm, has several plants. One plant, located in St.
I put the answers for A-E. I just need F
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's overhead consists primarily of depreciation and other machine-related expenses Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department A Department B $ 100,000 120,000 $ 282,000 302,000 Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 38,000 20,000 20,000 47,000 39,000 20,800 18,700 49,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. $25,000 Direct materials Direct labor cost: Department A (2,800 hr) Department B (1,500 hr) Machine-hours projected: Department A Department B Units produced 42,000 14,000 170 1,200 9,000 - Al - overhead rate $12.79 / direct labor hour A2 = manufacturing costs for Tobi10 - 2015.11 /unit BI- Plantrade over head rate - $5.37/machine hour 32= over head rate - Dept A 45,00 & machine hour over hand rate - Dept B 16.00 / maching hour B3- manufacturing cast for job 110 "B/0,71 /unit CL C = Bid Price - $ 176,796 C2= Bid Price - $ 125,329 3. Which method - overhead rate by machine hrs. D: Overapplied - 8/0.8.20 E continue to make the part Costper unit $10.72 8 external Buying cart B ll. 2 several jobs. Projected data pertaining only to job no. 110 are as follows. $25,000 Direct materials Direct labor cost: Department A (2,800 hr) Department B (1,500 hr) Machine-hours projected: Department A Department B Units produced 42,000 14,000 170 1,200 9,000 f. Would your response to parte change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $29,000? Incremental profit eamed by producing the other job Incremental cost of buying the parts from the subcontractor Increase in total profitsStep by Step Solution
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