Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead (LO3-1, LO3-2, LO3-4] High Desert Potteryworks makes a variety of pottery products that it sells to

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Problem 3-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead (LO3-1, LO3-2, LO3-4] High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Molding Painting 37,000 54,100 81,000 31,000 $ 178,200 $476,080 $ 3.00 - $ 5.00 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Direct labor-hours Machine-hours Direct materials Direct labor cost Department MoldingPainting 75127 38068 $ 950 $1,300 $ 700 $ 990 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 24 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.) Predetermined Overhead Rate Molding Department per MH Painting Department per DLH Reqi Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) Total overhead cost Req1 Req 3A > Req 1 Reg 2 Req Req 3B What would be the total manufacturing cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) Department Molding Painting Total Direct materials Direct labor Manufacturing overhead Total cost Reg 1 Req 2 Req Req 3B If the job contained 24 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit Req 3A Req 38 )

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

Computer Accounting With QuickBooks Online

Authors: Donna Kay

3rd Edition

1264127278, 9781264127276

More Books

Students also viewed these Accounting questions

Question

=+d) Comment on how these models do with these data.

Answered: 1 week ago