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Need answers with formulas in excel ITEM SET: JOB COSTING Francis Co. (FC) is a manufacturing company and uses a job-order accounting system for its
Need answers with formulas in excel
ITEM SET: JOB COSTING | |||||
Francis Co. (FC) is a manufacturing company and uses a job-order accounting system for its production costs. A predetermined overhead rate based on direct labor hours is used and applied to individual jobs. A flexible overhead budget was prepared for the fiscal as show below: | |||||
Overhead budget: | Low Capacity | Normal Capacity | High Capacity | ||
Direct labor hours | 110,000 | 130,000 | 150,000 | ||
Variable overhead costs | $325,000 | $390,000 | $455,000 | ||
Fixed overhead costs | $216,000 | $216,000 | $216,000 | ||
Total overhead | $541,000 | $606,000 | $671,000 | ||
The information presented below is for November, 2016. Jobs 2000 and 2001 were completed during November. | |||||
Inventories, 11/1/2016 | Materials and supplies used in production: | ||||
Raw materials | $10,500 | Job 2000 | $45,000 | ||
Work-in-progress (Job 2000) | $54,000 | Job 2001 | $37,500 | ||
Finished goods | $112,500 | Job 2002 | $25,500 | ||
Supplies | $12,000 | ||||
Purchases of raw materials and supplies: | Total | $120,000 | |||
Raw materials | $135,000 | ||||
Supplies | $15,000 | ||||
Total | $150,000 | ||||
Factory direct labor hours: | Labor costs: | ||||
Job 2000 | 3,500 | Direct labor wages | $51,000 | ||
Job 2001 | 3,000 | Indirect labor wages (4,000 hrs.) | $15,000 | ||
Job 2002 | 2,000 | Supervisory salaries | $6,000 | ||
Total | 8,500 | Total | $72,000 | ||
Building occupancy costs: | Factory equipment costs: | ||||
Factory facilities | $6,500 | Power | $4,000 | ||
Sales offices | $1,500 | Repairs and maintenance | $1,500 | ||
Administrative offices | $1,000 | Depreciation | $1,500 | ||
Total | $9,000 | Other | $1,000 | ||
Total | $8,000 | ||||
Assumed predetermined overhead rate | $4.0 | per direct labor hour | |||
1. What was actual factory overhead incurred during November? | |||||
Item | Amount | ||||
Indirect labor wages | |||||
Supervisor salaries | |||||
Total factory equipment costs | |||||
Factory facilities | |||||
Supplies | |||||
2. What was the total cost of Job 2000 (using the assumed predetermined overhead rate per direct labor hour)? | |||||
Item | Amount | ||||
Direct labor cost | |||||
Applied overhead | |||||
WIP Job 2000 | |||||
Materials Job 2000 | |||||
3. What amount of factory overhead costs were applied to Job 2002 during November (using the assumed predetermined overhead rate per direct labor hour)? | |||||
Item | Amount | ||||
4.What amount of total overhead costs were applied to jobs during November (using the assumed predetermined overhead rate per direct labor hour)? | |||||
Item | Amount | ||||
5. What is the most appropriate predetermined overhead rate to be used to apply overhead to individual jobs? | |||||
Item | Amount | ||||
Normal capacity: | |||||
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