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Required information Comprehensive Problem 5 ( Algo ) Skip to question [ The following information applies to the questions displayed below. ] The Gilster Company,
Required information
Comprehensive Problem Algo
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The following information applies to the questions displayed below.
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. Plantwide overhead, which includes the plant managers salary, accounting personnel, cafeteria, and human resources, is budgeted at $ During the past year, actual plantwide overhead was $ Each departments overhead consists primarily of depreciation and other machinerelated expenses. Selected budgeted and actual data from the St Cloud plant for the past year are as follows.
Department A Department B
Budgeted department overhead
excludes plantwide overhead $ $
Actual department overhead
Expected total activity:
Direct labor hours
Machinehours
Actual activity:
Direct labor hours
Machinehours
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 are as follows.
Direct materials $
Direct labor cost:
Department A hr
Department B hr
Machinehours projected:
Department A
Department B
Units produced
Comprehensive Problem Algo Part a
Required:
a 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 What is the expected cost per unit produced for job no
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