Management Accounting_Finalterm (1) [Protected View] - Excel (Unlicensed Product) helen marquez File Home Insert Page Layout Formulas Data Review w View Help Tell me what you want to do 0 PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com A1 x v fx Question 3: The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Fasano uses normal costing with Q U Question 3: The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Fasano uses normal costing with two direct-cost categories (direct materials and 15 MARKS direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machinehours as the allocation base, and the finishing department with direct manufacturing labor costs as the allocation base). The 2011 1 budget for the plant is as follows: Machining Department Finishing Department 4 Manufacturing overhead costs $10,660,000 $7,372,000 15 Direct manufacturing labor costs $ 940,000 $3,800,000 Direct manufacturing labor-hours 36,000 145,000 Machine-hours 205,000 32,000 10 Required: 12 1. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? 3 2. During the month of January, the job-cost record for Job 431 shows the following: Compute the total manufacturing overhead cost allocated to Job 431. 15 16 Machining Department Finishing Department Direct materials used $15,500 5,000 Direct manufacturing labor costs 400 $1,1,00 Direct manufacturing labor-hours 50 50 130 20 Machine-hours Ques 1 Ques 2 Ques 3 Ready 47'F 13 43) 15 RY to Ed 17 180/ 19 #2 110 14 17 12/4 ME 9% 3 4 6 7 8 9 1 # W E R T Y U O S P Caps Lock K A S D F G H J L Verr. Mal. E X C V B N M Alt Car Ctrl Ctrl Home/Debut EN RADERManagement Accounting_Finalterm (2) [Protected View] - Excel (Unlicensed Product) helen ma File Home t Page Layout Formulas Data Review View Tell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com 27 A DE F G H M N o Question 2: The job costing system at Smith's Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs; Job 215, an order of 15 intricate personalized frames, and Job 325, an order of 6 standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly- designed activity-based job-costing system. Total budgeted costs in each indirect cost pool and the budgeted quantity of activity driver are as follows: Budgeted Quantity Budgeted Overhead Activity Driver of Activity Driver NOTE: ACTIVITY DRIVER means 'COST DRIVER' A W Purchasing $ 70,000 Purchase orders processed 2,000 Material handling 87,500 Material moves 5,000 Machine maintenance 237,300 Machine-hours 10,500 Product inspection 18,900 Inspections 1,200 9 Packaging 39,900 Units produced 3,800 10 $453,600 12 Information related to Job 215 and Job 325 follows. Job 215 incurs more batch-level costs because it uses more types of materials that need to be purchased, 13 14 Job 215 Job 325 75 Number of purchase orders 25 8 16 Number of material moves 10 4 17 Machine-hours 40 60 18 Number of inspections 9 3 19 20 Units produced 15 22 REQUIRED: 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. 24 2. Compute the total overhead allocated to each job under an activity-based costing system using the appropriate activity drivers. Ques 2 Ready . 47" F 12 17 F104 F12 / A @ % & 3 4 5 8 O 1/4 1/2 3/4 W E R U 8 4 S F G H K Z V B