Question
T-bone Company has organized its manufacturing operations into two departments - machining and assembly. The total allocated manufacturing overhead in the machining and assembly departments
T-bone Company has organized its manufacturing operations into two departments - machining and assembly. The total allocated manufacturing overhead in the machining and assembly departments were $817,000 and $2,940,000 respectively. In the machining department, estimated total direct labor hours and estimated total machine hours were 3,200 and 19,000 respectively. In the assembly department, estimated total direct labor hours and estimated total machine hours were 12,000 and 3,900 respectively.
During the job, Job Q525 used 21 machine hours and 3 direct labor hours in the machining department. It also used 2 machine hours and 14 direct labor hours in the assembly department. Do not enter dollar signs or commas in the input boxes. Round all your answers to 2 decimal places. a) T-bone Company allocates manufacturing overhead to jobs using one predetermined overhead rate for the entire plant. This is based on direct labor hours as an allocation base. How much manufacturing overhead would be allocated to Job Q525? Plant-wide manufacturing overhead rate: $Answer Manufacturing overhead allocated to Job Q525: $Answer b) Suppose T-bone Company uses departmental predetermined overhead rates to allocate expected department overhead costs to jobs. In the machining department, manufacturing overhead is allocated based on machine hours. In the assembly department, direct labor hours are used as the allocation base. What is the total manufacturing overhead that would be allocated to Job Q525? Predetermined rate for the machining department: $Answer Predetermined rate for the assembly department: $Answer Manufacturing overhead allocated to job Q525 in the machining department: $Answer Manufacturing overhead allocated to job Q525 in the assembly department: $Answer Total Manufacturing overhead allocated to job Q525: $Answer c) What is the journal entry to allocate the manufacturing overhead in part (b) above?
Date | Account Title and Explanation | Debit | Credit |
Oct 31 | AnswerCashCost of Goods SoldFinished GoodsManufacturing OverheadNotes PayableRaw MaterialsRent ExpenseRetained EarningsSalaries ExpenseWIP | Answer | |
AnswerCashCost of Goods SoldFinished GoodsManufacturing OverheadNotes PayableRaw MaterialsRent ExpenseRetained EarningsSalaries ExpenseWIP | Answer |
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