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In each of the following situations, determine whether job costing or process costing would be more appropriate. 1. A CPA Firm 2. An oil refinery
In each of the following situations, determine whether job costing or process costing would be more appropriate. 1. A CPA Firm 2. An oil refinery 3. A custom furniture manufacturer 4. A tire manufacturer 5. A textbook publisher 6. A pharmaceutical company 7. An advertising agency 8. An apparel manufacturing plant 9. A flour mill 10. A paint manufacturer 11. A medical care facility 12. A landscaping company 13. A movie studio 14. A law firm 15. A breakfast-cereal company 16. A catering service 17. A paper mill 18. An auto repair shop The Lynn Company uses a job-costing system at its Minneapolis plant. The plant has a machining department and an assembly department. Its job-costing system has two manufacturing overhead cost pools (the machining department overhead, applied to jobs based on actual machine-hours, and the assembly department overhead, applied to jobs based on actual direct manufacturing labor costs). The 2014 budget for the plant was as follows: Machining Dept Assembly Dept Factory overhead $1,800,000 $3,600,000 Direct labor costs $1,400,000 $2,000,000 Direct labor-hours 100,000 200,000 Machine-hours 50,000 200,000 1. Compute the budgeted manufacturing overhead rate for each department. 2. During February, the job-cost records for Job 494 contained the following: Machining Dept Assembly Dept Direct materials used $45,000 $70,000 Direct labor costs $14,000 $15,000 Direct labor-hours 1,000 1,500 Machine-hours 2,000 1,000 Compute the total manufacturing overhead costs allocated to Job 494. 3. At the end of 2014, the actual manufacturing overhead costs were $2,100,000 in machining and $3,700,000 in assembly. 55,000 actual machine-hours were used in machining and direct manufacturing labor costs in assembly were $2,200,000. Compute the over- or under applied manufacturing overhead for each department. 4. Determine the over- or under applied manufacturing overhead for Lynn Co. and prepare the adiusting entry
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