Question
Spoodle Company manufactures goods in two processes: Assembly and Finishing. Manufacturing overhead for the period was estimated to be $100,000 for the Assembly process and
Spoodle Company manufactures goods in two processes: Assembly and Finishing. Manufacturing overhead for the period was estimated to be $100,000 for the Assembly process and $75,000 for the Finishing process. Assembly overhead is allocated based on machine hours, which were estimated to be 5,000 for the period. Finishing overhead is allocated based on direct labor hours, which were estimated to be 2,500 for the period. During the period, Spoodle completed Job 52, which used 40 direct labor hours (paid at $15 per hour), 100 machine hours, and $700 worth of direct materials. Spoodle incurred a total of $750 in repair costs on the job$100 for goods that were damaged in a fire, and $650 for modifications requested by the customer.
Calculate each of the following:
Instructions:
Enter all dollar values without dollar signs.
The companys predetermined manufacturing overhead rate for Assembly | |
The companys predetermined manufacturing overhead rate for Finishing | |
The cost of the job before considering spoilage and rework | |
The cost of any normal spoilage arising from the job | |
The cost of any abnormal spoilage arising from the job | |
The cost of any spoilage due to customer rejection arising from the job | |
The cost of any normal rework arising from the job | |
The cost of any abnormal rework arising from the job | |
The cost of any customer-requested rework arising from the job | |
The amount of spoilage and rework cost from the job that should be added to manufacturing overhead | |
The amount of spoilage and rework cost from the job that should be added to a loss account | |
The cost of the job after considering spoilage and rework |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started