No Service @ 52% 4 16:44 dl-mail.ymail.com Part 1 Estimated time = 26 - 28 minutes The Bootlt Company is a custom builder of luxury sail boats. It uses a job-costing system to assign costs to cach boat that it builds. Boat building operations are performed in two departments: the Hull Department and the Interiors Department. The firm uses normal costing to account for the costs incurred in each department with two categories of direct-cost (direct materials and direct labor) and two (manufacturing) overhead cost pools - one for each department. In the Hull Department, overhead costs are allocated based on machine time; in the Interiors Department the allocation is based on labor costs. Following data is available for 2011: Budete Overhead cost Direct laber C Direct laberim Machine time Hull Department interiors Department $4,000,000 $ 4.500,000 S 500 000 $ 1.500,000 20,00 hrs 75.000 hrs 200,000 hrs 15.000 hrs Actual Overhead cost S 4.000.000 S $35.000 190.00 Direct labor cost Machine time $ 1.900.000 14.000 hrs One of the projects (jobs) that Bootlt completed during the year was designated as the Silhouette Job. Information obtained from the firm's records for that job is presented below: Hull Department Interiores Department 2200 2000 500 SAS Details Direct labor cost Du Wertime Machine time 100 h 10 hs Required: 1. (4 points) For 2011, what was the overhead allocation rate for: The Hull Departments No Service 52% 16:44 dl-mail.gmail.com The Interiors Departments 2. (3 points) What is the total amount of the manufacturing overhead cost allocated to the Silhouette Job? Total amount of overhead allocated to the Silhouette Jobs 3. (3 points) The Silhouette Job consisted of two identical boats (the Celebrity and the VIP). What is the recorded cost of the Celebrity? Recorded cost of the Celebrity S 4.6 points) Compute the amount of the overhead variance for 2011, for both the Hull Department and the Interiors Department. (Place an "X" in the appropriate space to indicate whether the overhead was over-applied or under-applied.) Overhead variance for the Hull Departments Overhead was applied Over- Under-applied No Service @ 52% D4 16:44 dl-mail.ymail.com Overhead variance for the Interiors Departments Overhead was applied Over- Under-applied s (4 points) If Bootit had used actual costing (rather than normal costing), what would the cost of the VIP have been? Cost of the VIP using actual costing S Estimated time Variable vs Absorption Costing: = 30 - 35 minutes Doc Who Corp., which started business on January 1, 2013, manufactures a single product. It uses actual costing and applies overhead based on the number of units produced. The data presented below describe its operations for the year. Ah S Selling Price per unit Sales Revenue s | 54.725.000 $ 1.096.250 l l S145.00 Actual direct materials co e) Actual direct labor costanie) Budgeted manufacturing cost per und Actual manufacturing cost per unit | SIR20 $13.15 $13.00
