Product C can be processed further and sold at a higher price. a) Allocate the joint cost $220,000 to A,B, and C using physical method, the sales value at split-off method, the net realizable value method, and the constant gross margin percentage method. (b) Cooper Chemical is planning on further processing Chemical B to another costlier Chemical B+ with further processing cost $30/ gallon and selling price after further processing $50. Should Cooper Chemical invest on this plan? Department A uses number of employees and Department B uses maintenance hours to allocate direct costs. Overhead costs of Department C and D are allocated to products based on machine hours and abor hours respectively. Ross is preparing a bid for a job 601 that requires 4 machine hours per unit produced in Department C and no labor time in Department D. The expected prime costs per unit for Job 601 is $70. 1. Allocate the service department costs to production departments using the direct method. 2. Determine the bidding price for Job 601. Duke Company is a furniture manufacturer. At the end of November two jobs are in work-in-process. The following table provides the information about Jobs 401 and 402 The predetermined overhead rate for Duke is based on budgeted direct labor hours, 100,000, and the budgeted overhead cost, $750,000. The actual data for November are: There is no beginning inventory. Duke prorates overhead variance to FG, WIP, COGS based on total costs in these accounts. (a) Determine the predetermined overhead application rate and the cost of WIP before overhead variance proration. (b) Determine the overhead variance and prorate the variance to WIP, FG, and COGS. Determine the cost of goods transferred out and the cost of ending inventory of WIP for November. Product C can be processed further and sold at a higher price. a) Allocate the joint cost $220,000 to A,B, and C using physical method, the sales value at split-off method, the net realizable value method, and the constant gross margin percentage method. (b) Cooper Chemical is planning on further processing Chemical B to another costlier Chemical B+ with further processing cost $30/ gallon and selling price after further processing $50. Should Cooper Chemical invest on this plan? Department A uses number of employees and Department B uses maintenance hours to allocate direct costs. Overhead costs of Department C and D are allocated to products based on machine hours and abor hours respectively. Ross is preparing a bid for a job 601 that requires 4 machine hours per unit produced in Department C and no labor time in Department D. The expected prime costs per unit for Job 601 is $70. 1. Allocate the service department costs to production departments using the direct method. 2. Determine the bidding price for Job 601. Duke Company is a furniture manufacturer. At the end of November two jobs are in work-in-process. The following table provides the information about Jobs 401 and 402 The predetermined overhead rate for Duke is based on budgeted direct labor hours, 100,000, and the budgeted overhead cost, $750,000. The actual data for November are: There is no beginning inventory. Duke prorates overhead variance to FG, WIP, COGS based on total costs in these accounts. (a) Determine the predetermined overhead application rate and the cost of WIP before overhead variance proration. (b) Determine the overhead variance and prorate the variance to WIP, FG, and COGS. Determine the cost of goods transferred out and the cost of ending inventory of WIP for November
