Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SAVOIE Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year,

image text in transcribed
SAVOIE Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $228.240 and total machine hours at 63.400 During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 Job 102 Job 103 Total $ 11,200 $ 7,460 $ 4,700 $ 23,300 $ 17,500 $ 6,700 $ 5,900 $ 38,100 1,500 hours 2,500 hours 700 hours 4,700 hours 6 Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,420. Required: 1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations (Round your intermediate calculations to 2 decimal places.) 3. Compute the balance in the Work in Process Inventory account at the end of the first month. (Round your intermediate calculati to 2 decimal places.) 4. How much gross profit would the company report during the first month of operations before making an adjustment for over on underapplied manufacturing overhead? (Round your intermediate calculations to 2 decimal places.) 5-a. Determine the balance in the Manufacturing Overhead account at the end of the first month(Round your intermediate calculations to 2 decimal places.) 5-b. Is it over- or underapplied? per Machine Hour 1 2 3. Predetermined Overhead Rate Total Applied Manufacturing Overhead Ending Work in Process Inventory

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

Accountancy And The Changing Landscape Of Integrated Reporting

Authors: Ioana Dragu

1st Edition

1522536221, 9781522536222

More Books

Students also viewed these Accounting questions