Requirement 5. Compute the total amount of overhead allocated to each job if Teahen Products uses departmental overhead rates. Job 500 Job 501 Overhead allocation - Machining Department Overhead allocation - Assembly Department Total overhead allocation Requirement 6. Do both of the allocation systems accurately reflect the resources that each job used? Explain. The single plantwide overhead rate assigned of overhead to both jobs. The departmental rates assign 7 to Job 501 than Job 500 due to the used. This seems Requirement 7. Compute the total manufacturing cost and sales price of each job using Teahen Products' current plantwide overhead rate. (Round amounts to the nearest dollar. Enter the percentage as a whole number.) Job 500 Job 501 Direct materials Direct labour Manufacturing overhead Total manufacturing costs Markup for pricing (%) Sales price Requirement 8. Based on the current (plantwide) allocation system, how much profit did Teahen Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did it really earn on each job? Calculate the gross profit using the current costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit / (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7, how much profit did the company really earn on each job? Calculate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses.) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labour Manufacturing overhead Gross profit/ (loss) Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Teahen believes that When utilizing a refined costing method, Teahen realizes that Requirements Data Table 1. Compute Teahen Products' current plantwide overhead rate. 2. Compute refined departmental overhead rates. 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. 4. Compute the total amount of overhead allocated to each job if Teahen Products uses its current plantwide overhead rate. 5. Compute the total amount of overhead allocated to each job if Teahen Products uses departmental overhead rates 6. Compute Machining Assembly 7. Department Department Do both allocation systems accurately reflect the resources that each job used? Explain. the total manufacturing cost and sales price of each job using Teahen Products' current plantwide overhead rate. 8. Based on the current (plantwide) allocation system, how much profit did Teahen Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7, how much profit did it really earn on each job? 9. Compare and comment on the results you obtained in Requirements 7 and 8. Job 500 9 MH 12 DL hours 6 DL hours Job 501 18 MH 12 DL hours 6 DL hours Print Done Print Done ate. Requirement 8. Based on the current (plantwide) allocation system, how much profit did Teahen Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did it really earn on each job? Calculate the gross profit using the current costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit / (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7, how much profit did the company really earn on each job? Calculate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses.) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labour Manufacturing overhead Gross profit/ (loss) Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Teahen believes that When utilizing a refined costing method, Teahen realizes that Requirement 5. Compute the total amount of overhead allocated to each job if Teahen Products uses departmental overhead rates. Job 500 Job 501 Overhead allocation - Machining Department Overhead allocation - Assembly Department Total overhead allocation Requirement 6. Do both of the allocation systems accurately reflect the resources that each job used? Explain. The single plantwide overhead rate assigned of overhead to both jobs. The departmental rates assign 7 to Job 501 than Job 500 due to the used. This seems Requirement 7. Compute the total manufacturing cost and sales price of each job using Teahen Products' current plantwide overhead rate. (Round amounts to the nearest dollar. Enter the percentage as a whole number.) Job 500 Job 501 Direct materials Direct labour Manufacturing overhead Total manufacturing costs Markup for pricing (%) Sales price
