Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Required information [The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located in

image text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribed
Required information [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. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $400,000. During the past year, actual plantwide overhead was $387,000. 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 A Department B Budgeted department overhead (excludes plantwide overhead) $ 108,800 $ 473,000 Actual department overhead 125, 000 485, 000 Expected total activity: Direct labor hours 54,000 25,000 Machine-hours 17 , 000 55,000 Actual activity: Direct labor hours 56,500 24, 100 Machine-hours 17 ,800 57,000 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. Direct materials $22, 400 Direct labor cost: Department A (3,000 hr) 45,000 Department B (1, 800 hr) 11, 600 Machine-hours projected: Department A 250 Department B 1, 200 Units produced 9,000Required: 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? Complete this question by entering your answers in the tabs below. Req A1 Req 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.) Overhead rate per direct labor hour 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? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the expected cost per unit produced for job no. 110? (Round your intermediate calculations and final answer to 2 decimal places.) Manufacturing costs for Job 110 per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Global Strategy

Authors: Mike W. Peng

5th Edition

0357512367, 978-0357512364

Students also viewed these Accounting questions