Question
Job A500: Direct materials: Fabric FB70 180 bolts @ $350 Lumber (No. 1 common) 20,000 board feet @ $0.12 Other components $26,600 Direct labor: Cutting
Job A500: | |||
Direct materials: | |||
Fabric FB70 | 180 bolts @ $350 | ||
Lumber (No. 1 common) | 20,000 board feet @ $0.12 | ||
Other components | $26,600 | ||
Direct labor: | |||
Cutting Department | 400 hours @ $10 | ||
Assembly Department | 1,600 hours @ $8.75 | ||
Machine time: | |||
Cutting Department | 350 machine hours | ||
Assembly Department | 50 machine hours | ||
Job B75: | |||
Direct materials: | |||
Fabric FB70 | 26 yards @ $350 | ||
Lumber (first and seconds) | 2,200 board feet @ $0.12 | ||
Other components | $3,236 | ||
Direct labor: | |||
Cutting Department | 70 hours @ $10 | ||
Assembly Department | 240 hours @ $8.75 | ||
Machine time: | |||
Cutting Department | 90 machine hours | ||
Assembly Department | 15 machine hours |
What is the effect on the cost of each proposed job if the mill switches to the sales-value-at-split-off method?
Effect on Job A500 the cost per board foot is increase thus cost increase by $fill in the blank 22 Effect on Job B75 the cost per board foot is increase thus cost increase by $fill in the blank 25
2. Calculate the plantwide overhead rate for the fabric plant. $fill in the blank 26 per hour
3. Calculate the amount of under- or overapplied overhead for the fabric plant. $fill in the blank 27 overapplied
4. Using the weighted average method, calculate the cost per bolt for Fabric FB70. $fill in the blank 29
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