Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 8 of 10 View Policies < Current Attempt in Progress Gary was looking back at the profitability of a few jobs from the

image text in transcribedimage text in transcribed

Question 8 of 10 View Policies < Current Attempt in Progress Gary was looking back at the profitability of a few jobs from the prior year, wondering if more profit could have been generated. The executive team of this custom manufacturing shop tries to achieve gross margins near 50% for all of its projects. Each completed job that Gary examined was profitable when overhead costs were determined using the company's actual costing system. Still, since he didn't have those total job costs until the end of the year, he wondered if he could have built in a larger gross margin if he had been able to better estimate these total job costs sooner. Here is more detailed information on the three jobs Gary is reviewing: Job #45 Job #76 Job #82 Actual DM costs $5,900 $12.300 $16.700 Actual DL costs 4,350 14.500 10,200 Applied MOH costs under actual costing 28.275 94.250 66,300 Total costs 38.525 121,050 93.200 Sales revenue $7,000 200,000 135,000 In this manufacturing company, MOH is applied based on direct labor costs.

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

Financial Accounting Theory and Analysis Text and Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey

11th edition

9781118806500, 1118582799, 1118806506, 978-1118582794

More Books

Students also viewed these Accounting questions

Question

How might this affect the risk-taking behaviour of directors?

Answered: 1 week ago