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Take me to the text The following information was reported by Minstrel Company relating to its first year of operations. Note that Minstrel has only identified direct labor and direct materials as direct costs. Item Expected Cost Actual Cost Advertising Expenditures $159,100 $152,500 Depreciation on Factory Equipment $557,000 $587,000 Direct Labor $885,000 $921,000 Direct Materials $1,270,000 $1,208,000 Factory Supplies $100,400 $100,300 Head Office General Expenditures $356,400 $369,100 Head Office Salaries $395,900 $310,800 Heating in Factory $111,400 $115,900 Income Taxes $2,299,000 $2,782,000 Machine Repair and Maintenance $ 105,900 $100,400 Production Supervisor Wages $122,900 $124,600 Rent for Factory $900,100 $987,600 Office Supplies $112,300 $121,800 Sales Expenditures $412,600 $424,500 Intal l donc con Item Expected Cost Actual Cost Advertising Expenditures $159,100 $152,500 Depreciation on Factory Equipment $557,000 $587,000 Direct Labor $885,000 $921,000 Direct Materials $1,270,000 $1,208,000 Factory Supplies $100,400 $100,300 Head Office General Expenditures $356,400 $369,100 Head Office Salaries $395,900 $310,800 Heating in Factory $111,400 $115,900 Income Taxes $2,299,000 $2,782,000 Machine Repair and Maintenance $105,900 $100,400 Production Supervisor Wages $122,900 $124,600 Rent for Factory $900,100 $987,600 Office Supplies $112,300 $121,800 Sales Expenditures $412,600 $424,500 Total $7,788,000 $8,305,500 Minstrel Company allocates manufacturing overhead using a predetermined overhead rate. Minstrel uses direct labor hours as an allocation base and incurs 32,700 direct labor hours. a) What is the total estimated manufacturing overhead cost? Estimated Manufacturing Overhead Costs: b) What is the predetermined overhead rate? Round your answer to 2 decimal places. Predetermined overhead rate: c) If the hourly rate for direct labor is $26, what is the manufacturing overhead applied to production? Round your answer to the nearest whole number. Applied Overhead: d) What is the over or under-allocated manufacturing overhead for this year? Assume the wage rate is still $26/hr. . Check D3 Not checked Marked out of Pflag question Take me to the text Chum Company has just completed its first year of operations. During the year, Chum Company purchased $527,000 of materials. The year-end balance reported in the raw materials account was $52,000. 529,000 of the raw materials consumed was considered as indirect materials and entered into manufacturing overhead. Chum Company incurred $1,248,000 in total direct labor wages during the year. Factory workers are paid $26 per hour. Total manufacturing overhead during the year amounted to $354,000, which was $36,000 less than estimated. Total factory worker hours were 10% less than estimated. Chum Company's manufacturing overhead was allocated using direct labor hours as the allocation base. Chum Company charges any over or under-allocated manufacturing overhead to cost of goods sold. During the year, Chum Company started and completed Job 003. This job consumed 35% of the total direct direct materials used this year and 45% of the direct labor hours. Determine the total cost for Job 003. Do not enter dollar signs or commas in the input boxes. Round the predetermined overhead to 2 decimal places. Round all other answers to the nearest whole number. Total Direct Material Costs: $ Total Direct Labor Hours: Total Direct Material Costs: $ Total Direct Labor Hours: Total Estimated Direct Labor Hours: Total Estimated Manufacturing Overhead: $ Predetermined Overhead Rate: $ Direct Material Costs Job 003: $ Labor Costs Job 003: $ Manufacturing Overhead Job 003: $ Total Estimated Manufacturing Overhead: $ Predetermined Overhead Rate: $ Direct Material Costs Job 003: $ Labor Costs Job 003: $ Manufacturing Overhead Job 003: $ Total Costs Job 003: $ Question 4 Take me to the text Not checked Marked out of 4.00 RST Company makes a wide variety of gear assemblies for industrial applications. The company uses job order costing, with a predetermined overhead rate of $5.20 per machine hour. During May 2019, RST worked on the following jobs. P Flag question Job #52 Job #53 Job #54 Direct Materials Used on Job $13,040 $17,000 $7,870 Direct Labor Cost $18,910 $13,450 $10,140 Machine Hours 1,390 1,470 790 Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. a) Calculate the amount of overhead to be allocated to each job. Direct Materials Used on Job $13,040 $17,000 $7,870 Direct Labor Cost $18,910 $13,450 $10,140 Machine Hours 1,390 1,470 790 Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. a) Calculate the amount of overhead to be allocated to each job. Job #52: $ Job #53: $ Job #54: $ b) Assume actual overhead for May was $15,184. Indicate whether overhead was under or over allocated. Check Question 5 Take me to the text Not checked Marked out of 2.00 A company estimated its manufacturing overhead to be $519,000 for the year, based on a normal capacity of 106,000 direct labor hours. At the end of the year, actual direct labor hours totaled to 102,000 while actual manufacturing overhead costs amounted to $536,000. P Flag question Do not enter dollar signs or commas in the input boxes. a) Calculate the predetermined overhead rate. Round your answer to 2 decimal places. Predetermined overhead rate: b) Determine the amount of over or under-allocated overhead. Round your answer to the nearest whole number. Do not use the negative sign. Over/Under Allocated: Check ZA W Question 6 Take me to the text Not checked Marked out of 3.00 F Flag question Maggie Company allocates manufacturing overhead to jobs based on machine hours. Just before the current accounting period, Maggie estimated that total manufacturing overhead costs would amount to $1,712,972 and total machine hours would amount to 14,767. During the year, the actual manufacturing overhead was $1,900,000 and the actual number of machine hours was 15,900. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) What is the predetermined overhead rate that Maggie Company used to allocate manufacturing overhead to production? Predetermined Overhead Rate: b) Was manufacturing overhead over or under-allocated during the year? Check Take me to the text A manufacturing firm uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs, based on machine hours required. At the beginning of 2019, the firm expected to incur the following: Budgeted Manufacturing Overhead Costs $1,120,000 Budgeted Direct Labor Cost $1,730,000 Budgeted Machine Hours 70,000 At the end of 2019, the firm had actually incurred: Direct Labor Cost $1,220,000 Depreciation on Manufacturing Property, Plant and Equipment $425,000 Sales Salaries $40,000 Delivery Drivers' Wages $25,000 Plant Janitors' Wages $15,000 Machine Hours 65,000 Do not enter dollar signs or commas in the input boxes. a) Calculate the firm's predetermined overhead rate. Round your answer to 2 decimal places. c) Determine the balance for the manufacturing overhead account. Round your answer to the nearest whole number, DR Manufacturing Overhead CR Actual Overhead: Allocated Overhead: $ Balance $ d) is the manufacturing overhead account over or under allocated? e) Close the manufacturing overhead account to cost of goods sold. DR CR Date Description Dec 31 0 a IA Type here to search Do not enter dollar signs or commas in the input boxes, a) Calculate the firm's predetermined overhead rate. Round your answer to 2 decimal places. Predetermined overhead rate: $ b) Calculate the total amount of overhead allocated. Round your answer to the nearest whole number. Allocated Overhead: $ c) Determine the balance for the manufacturing overhead account. Round your answer to the nearest whole number. DR Manufacturing Overhead CR Actual Overhead: Allocated Overhead: Balance 5 d) is the manufacturing overhead account over or under allocated? e) Close the manufacturing overhead account to cost of goods sold. Date Description DR CR Dec 31 To close the manufacturing overhead account Check Chapter 2: Job Order Costing / Chapter 2 Pos to 8 Not checked Marked out of 11.00 Flag question Take me to the text Angus Company has organized its manufacturing operations into two departments - machining and assembly. The total allocated manufacturing overhead in the machining and assembly departments were $700,000 and $2,604,000 respectively. In the machining department, estimated total direct labor hours and estimated total machine hours were 4,900 and 20,000 respectively. In the assembly department, estimated total direct labor hours and estimated total machine hours were 12,400 and 3,500 respectively. During the job, Job Q581 used 30 machine hours and 7 direct labor hours in the machining department. It also used 6 machine hours and 15 direct labor hours in the assembly department. Do not enter dollar signs or commas in the input boxes. Round all your answers to 2 decimal places. a) Angus Company allocates manufacturing overhead to jobs using one predetermined overhead rate for the entire plant. This is based on direct labor hours as an allocation base. How much manufacturing overhead would be allocated to Job Q581? Type here to search O Do not enter dollar signs or commas in the input boxes. Round all your answers to 2 decimal places. a) Angus Company allocates manufacturing overhead to jobs using one predetermined overhead rate for the entire plant. This is based on direct labor hours as an allocation base. How much manufacturing overhead would be allocated to Job Q581? Plant-wide manufacturing overhead rate: $ Manufacturing overhead allocated to Job Q581: $ b) Suppose Angus Company uses departmental predetermined overhead rates to allocate expected department overhead costs to jobs. In the machining department, manufacturing overhead is allocated based on machine hours. In the assembly department, direct labor hours are used as the allocation base. What is the total manufacturing overhead that would be allocated to Job 0581? Predetermined rate for the machining department: $ Predetermined rate for the assembly department: $ engs Predetermined rate for the machining department: $ Predetermined rate for the assembly department: $ Manufacturing overhead allocated to job 0581 in the machining department: $ Manufacturing overhead allocated to job Q581 in the assembly department: $ Total Manufacturing overhead allocated to job Q581: $ c) What is the journal entry to allocate the manufacturing overhead in part (b) above? Date Account Title and Explanation Debit Credit Jun 30 - -9 Take me to the text Ecked out of QRS Manufacturing Company makes large drills for specific customers and uses job order costing to accumulate costs. The company started operating in January 2019 with no inventories. During January, it worked on two jobs. Job # 1 Job # 2 ws Direct Materials Used $61,000 $48,000 Direct Labor at $8 per hour $50,080 $68,400 QRS incurred manufacturing overhead costs of $196,000. Budgeted monthly manufacturing overhead is $121,000. The company uses a predetermined overhead rate based on 11,000 direct labor hours per month. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Calculate the predetermined overhead rate per direct labor hour. Job # 1 Job # 2 Direct Materials Used $61,000 $48,000 Direct Labor at $8 per hour $50,080 $68,400 QRS incurred manufacturing overhead costs of $196,000. Budgeted monthly manufacturing overhead is $121,000, The company uses a predetermined overhead rate based on 11,000 direct labor hours per month. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Calculate the predetermined overhead rate per direct labor hour. Predetermined Overhead Rate: b) Determine the amounts of overhead to apply to each job. Job # 1: Job # 2: Check Question 10 Take me to the text Not checked Marked out of 8.00 P Flag question During its first year of operations, Salt Company had estimated total manufacturing overhead to be $2,690,100. Salt Company used direct labor hours as an allocation base for the predetermined overhead rate. Estimated total direct labor hours for the year was 18,300 and actual total direct labor hours amounted to 22,700. The direct labor wage rate is $22/hr. Actual manufacturing overhead was 103% of estimated total manufacturing overhead. The ending balances in work-in-process, finished goods inventory, and cost of goods sold before any adjustment for over or under-allocated manufacturing overhead were $486,000, $1,430,000, and $2,860,000 respectively. An analysis of the account balances concluded that actual direct labor cost was 6% of the account balance for all three accounts. Do not enter dollar signs or commas in the input boxes. a) Suppose Salt Company has a policy of allocating any over or under-allocated manufacturing overhead to cost of goods sold. Calculate the amount of over or under-allocated manufacturing overhead. Round the overhead rate to 2 decimal places. Salt Company's manufacturing overhead rate: $ Round the overhead rate to 2 decimal places. Salt Company's manufacturing overhead rate: $ Round the rest of these answers to the nearest whole dollar. Total Manufacturing overhead allocated: $ Actual Manufacturing Overhead: $ Over-allocated: $ b) Record the appropriate adjusting entry for part (a) Debit Account Title and Explanation Date Credit May 31 Actual Manufacturing Overhead: $ Over-allocated: $ b) Record the appropriate adjusting entry for part (a) Debit Credit Date Account Title and Explanation May 31 Check Question 11 Take me to the text Not checked Marked out of 6.00 StarPower Inc. is a company that produces custom photo frames. On July 15, 2019, Star Power Inc. records the transfer of $82,100 of raw materials into production. $20,525 of the raw materials is considered as direct materials, and $61,575 of the raw materials is considered as indirect materials. What is the journal entry to transfer these costs to the WIP and manufacturing overhead accounts? P Flag question Do not enter dollar signs or commas in the input boxes. Enter the debit accounts in alphabetical order. Date Credit Debit Account Title and Explanation . Jul 15 . Question 12 Take me to the text Not checked Horizon Company, a well-known manufacturer of high quality speed boats, provided the following information for the month of December 2019. Marked out of 8.00 Job # 6 Job # 7 Job #8 P Flag question Allocated Manufacturing Overhead $28,200 $25,900 $26,100 Direct Labor $24,300 $24,800 $20,300 Direct Materials $19,200 $23,500 $27,300 Total $71,700 $74,200 $73,700 The December sales report showed that Job # 6 and # 7 were sold for cash amounting to $94,300 and $99,700 respectively. Job # 8 is still unsold. Record the above sale. Assume that Horizon Company uses a perpetual inventory system. The December sales report showed that Job # 6 and # 7 were sold for cash amounting to $94,300 and $99,700 respectively. Job # 8 is still unsold. Record the above sale. Assume that Horizon Company uses a perpetual inventory system. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Dec 31 To record sales Dec 31 > To recognize COGS Question 13 Take me to the text Not checked Marked out of 6.00 Johnson's Fancy Bakery worked on two projects during the month of March. Information on the jobs is given below: Birthday Cake Wedding Cake P Flag question Flour $2.00/lb 6.0 lbs 13.0 lbs 3.0 dozen 0.5 dozen 2.0 lbs 2.5 lbs 2.5 lbs 4.0 lbs Eggs $1.00/dozen Sugar $2.00/1b Other ingredients $5.00/lb Mixing $2.00/hour Decorating $9.00/hour Manufacturing Overhead (actual) 1.0 hours 5.0 hours 6.0 hours 10.0 hours $52 $80 Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places. Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places, a) Calculate direct materials and direct labor for each job. Materials Labor Birthday Cake $ Wedding Cake$ b) What is the total product cost for each job? Total Cost Birthday Cake $ Wedding Cake$ Check Question 14 Take me to the text Not checked Marked out of 14.00 Signate Furntiture has just completed building 10 tables for customer Prestige Worldwide and has delivered them to the customer. The job order is #6253. Below are the financial details regarding the tables on a per unit basis. Item Amount P Flag question Sales Price $1,000 Direct Labor $110 Direct Material $260 Manufacturing Overhead $70 Do not enter dollar signs or commas in the input boxes. Round the gross margin to 1 decimal place. Do not use the negative sign. Using this information, prepare a Job Order Cost and Margin Record for this job. Signate Furntiture Job Order Cost and Margin Record Job #6253 for Prestige Worldwide Number of Tables 10 1 Sales Price - Using this information, prepare a Job Order Cost and Margin Record for this job. Signate Furntiture Job Order Cost and Margin Record Job #6253 for Prestige Worldwide Number of Tables 10 1 Sales Price Direct Labor Direct Material Manufacturing Overhead Total Product Cost Gross Profit % % Gross Margin