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Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch
Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant managers salary, accounting personnel, cafeteria, and human resources, is budgeted at $ During the past year, actual plantwide overhead was $ Each departments overhead consists primarily of depreciation and other machinerelated expenses. Selected budgeted and actual data from the Saint Cloud plant for the past year are as follows: Department A Department B Budgeted department overhead excludes plantwide overhead $ $ Actual department overhead Expected total activity: Direct labor hours Machinehours Actual activity: Direct labor hours Machinehours For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for several jobs. Projected data pertaining only to job number are as follows: Direct materials $ Direct labor cost: Department A hours Department B hours Machinehours projected: Department A Department B Units produced f A Saint Cloud subcontractor has offered to produce the parts for job number for a price of $ per unit. Assume the Saint Cloud sales force has already committed to the bid price of $ Compute incremental cost benefit to make if the Saint Cloud plant could use the facilities necessary to produce parts for job number for another job that could earn an incremental profit of $ Assume the Saint Cloud plant uses three separate overhead rates to assign overhead costs to jobs based on machine hours.
Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant managers salary, accounting personnel, cafeteria, and human resources, is budgeted at $ During the past year, actual plantwide overhead was $ Each departments overhead consists primarily of depreciation and other machinerelated expenses. Selected budgeted and actual data from the Saint Cloud plant for the past year are as follows:
Department A Department B
Budgeted department overhead excludes plantwide overhead $ $
Actual department overhead
Expected total activity:
Direct labor hours
Machinehours
Actual activity:
Direct labor hours
Machinehours
For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for several jobs. Projected data pertaining only to job number are as follows:
Direct materials $
Direct labor cost:
Department A hours
Department B hours
Machinehours projected:
Department A
Department B
Units produced
f A Saint Cloud subcontractor has offered to produce the parts for job number for a price of $ per unit. Assume the Saint Cloud sales force has already committed to the bid price of $ Compute incremental cost benefit to make if the Saint Cloud plant could use the facilities necessary to produce parts for job number for another job that could earn an incremental profit of $ Assume the Saint Cloud plant uses three separate overhead rates to assign overhead costs to jobs based on machine hours.
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