Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me. Cny w The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job

Please help me.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cny w The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department Department $ 100,000 110,000 $ 500,000 520,000 Budgeted department overhead (excludes plantvide overhead) Actual department overhead Expected total activity birect labor hours Machine-hours Actual activity Direct Labor hours Machine-hours 50,000 10,000 10,000 50,000 51,000 10.500 9,000 52,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several Jobs. Projected data pertaining only to job no. 110 are as follows Direet materials Direct labor costi Department A (2.000 hr) Department (500 hr) Machine-hours projectedt Department A Department Units produced $20,000 30,000 6,000 100 1.200 10,000 Part 1 of 6 Required: a-1. Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected total direct labor hours to compute the overhead rate. a-2. What is the expected cost per unit produced for job no. 110? 16.66 points Complete this question by entering your answers in the tabs below. Shipped ook Print Req A1 Reg A2 Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected total direct labor hours to compute the overhead rate. (Round your answer to 2 decimal places.) per direct labor hour AD Req A2 > Comprehensive Problem 5 (Algo) Part b Assume the St. Cloud plant uses three separate overhead rates to assign overhead costs to jobs. -1. Find the plant wide overhead rate by using expected machine hours. b-2. Find the department overhead rate using expected machine hours for Department A and Department B. b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed in b-1 and b-2. Complete this question by entering your answers in the tabs below. Req B1 Reg B2 Rea B3 Find the plant wide overhead rate by using expected machine hours. (Round your answer to 2 decimal plates.) Plan de overeadrato per machine hour Comprehensive Problem 5 (Algo) Part 3 of 6 5 5 c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 30 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? c-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 30 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? c-3. Which of the overhead allocation methods would you recommend? skipped Complete this question by entering your answers in the tabs below. BOOK Print Reg C1 Reg C2 Reg C3 References The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 30 percent to total manufacturing couts. What would be the bid for job no. 110 using the overhead rate from part a? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) RO Req C2 > Comprehensive Problem 5 (Algo) Part d d d. Compute the under-or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate calculations to 2 decimal places.) * ces Comprehensive Problem 5 (Algo) Parte e. A St. Cloud subcontractor has offered to produce the parts for job no. 110 for a price of $8 per unit. Assume the St. Cloud Salesforce has already committed to the bid price based on the calculations in part b. Should the St Cloud plant buy the $8 per unit part from the subcontractor or continue to make the parts for job no. 110 itself? Continue to make the part Buy part from the subcontractor Comprehensive Problem 5 (Algo) Partf . Would your response to parte change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $15,000? non Incremental profit earned by producing the other job Incremental cost of buying the parts from the subcontractor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Algebra With Modeling And Visualization

Authors: Gary Rockswold

6th Edition

0134418042, 978-0134418049

Students also viewed these Accounting questions