Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In another of its divisions that utilizes Job Order Costing, the following information has been provided: Overhead costs are assigned to jobs on the

image text in transcribed

In another of its divisions that utilizes Job Order Costing, the following information has been provided: Overhead costs are assigned to jobs on the basis of machine hours. The division estimated the following annual amounts for 2022: Company Direct materials $60,000 Direct labor $25,000 Manufacturing overhead costs $72,000 Machine hours 80,000 Details on Job #362, completed during June 2022, follows: Direct materials Direct labor Machine hours Job # 362 $4,500 $2,500 1,350 Required: a. Compute the predetermined overhead rate. b. Compute the manufacturing overhead cost assigned to Job #362. c. Compute the total manufacturing costs for Job # 362. (2 Marks) (1 Mark) (2 Marks) d. Compute the over- or under-applied overhead cost for June 2022, given the following: (3 Marks) Actual machine hours totaled 7,000 Actual overhead costs were $6,000 e. Journalize the necessary entry at June 30, 2022 to adjust the over- or under-applied overhead cost computed in part (d). (2 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

3rd edition

132890542, 978-0132890540

Students also viewed these Accounting questions