The ABC Company uses a job-costing system at its Chicago, Illinois, plant. The plant has a...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6650e4d555f27_4926650e4d4d0fbe.jpg)
Transcribed Image Text:
The ABC Company uses a job-costing system at its Chicago, Illinois, plant. The plant has a machining department and a finishing department. ABC uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2014 budget for the plant is as follows: Machining Department Finishing Department Manufacturing overhead costs Direct manufacturing labor costs $9,065,000 $8,181,000 $ 970,000 $4,050,000 Direct manufacturing labor-hours 36,000 185,000 155,000 37,000 Machine-hours Required: 1. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? 2. During the month of January, the job-cost record for Job 431 shows the following: Machining Department Finishing Department Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours $13,000 $ 900 $ 5,000 $1,250 20 70 140 20 Machine-hours Compute the total manufacturing overhead cost allocated to Job 431. 3. Assuming that Job 431 consisted of 300 units of product, what is the cost per unit? 4. Amounts at the end of 2014 are as follows: Mfg. overhead incurred Machining Department $10,000,000 Finishing Department $7,982,000 Direct mfg. labor costs Machine-hours $ 1,030,000 200,000 $4,100,000 34,000 Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 5. Why might Pisano use two different manufacturing overhead cost pools in its job- costing system? The ABC Company uses a job-costing system at its Chicago, Illinois, plant. The plant has a machining department and a finishing department. ABC uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2014 budget for the plant is as follows: Machining Department Finishing Department Manufacturing overhead costs Direct manufacturing labor costs $9,065,000 $8,181,000 $ 970,000 $4,050,000 Direct manufacturing labor-hours 36,000 185,000 155,000 37,000 Machine-hours Required: 1. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? 2. During the month of January, the job-cost record for Job 431 shows the following: Machining Department Finishing Department Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours $13,000 $ 900 $ 5,000 $1,250 20 70 140 20 Machine-hours Compute the total manufacturing overhead cost allocated to Job 431. 3. Assuming that Job 431 consisted of 300 units of product, what is the cost per unit? 4. Amounts at the end of 2014 are as follows: Mfg. overhead incurred Machining Department $10,000,000 Finishing Department $7,982,000 Direct mfg. labor costs Machine-hours $ 1,030,000 200,000 $4,100,000 34,000 Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 5. Why might Pisano use two different manufacturing overhead cost pools in its job- costing system?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Factor each trinomial. 4(m 5)2 4(m 5) 15
-
Follow the instructions of Prob. 25.4-1 when using the following network. Note that component 3 flows in both directions. (a) Find all the minimal paths and cuts. (b) Compute the exact system...
-
Explain what it means to allocate, apportion and absorb indirect costs.
-
(Appendix) Elke Ginter operates a health-food bakery that uses specially ground flour in its products. The bakery operates 360 days a year. Elke finds that she seems to order either too much or too...
-
The global recession forced thousands of firms into bankruptcy. Does this fact alone confirm that external factors are more important than internal factors in strategic planning? Discuss.
-
1. As businesses expand to serve global markets, How Global Changes Affect business houses, Explain with example. 2. "Productivity is the means for increasing the welfare and wealth of nation"....
-
Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The corporation uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of...
-
Blossom Company compiled the following financial information as of December 31, 2025: Service revenue $825000 Common stock 175000 Equipment 225000 Operating expenses 725000 Cash 200000 Dividends...
-
Define HIPPA? What is the purpose of HIPPA? What are the 4 main rules of HIPPA?
-
Accounting for Inventories" Please respond to the following: As a Financial Accountant,determine the best type of income statement a retailer should use.Defend your suggestion. Analyze inventory...
-
A baseball player's slugging percentage SLG can be calculated with the following formula (which is an example of a rational function): SLG = H+2B+2x(3B)+3x(HR) AB Q Image transcription text H+2B+2x...
-
Question During 2021, Cassandra Albright, who is single, worked part-time at a doctor's office and received a W-2. She also had a cash-basis consulting practice that had the following income and...
-
Shelly Beaman (social security number 412-34-5670) Is single and resides at 540 Front Street, Ashland, NC 27898. Shelly's W-2 wages Federal withholding Social security wages Social security...
-
Which of the following is NOT a way to signal high quality Group of answer choices leaving a big tip for the waiter after a dinner date offering an expensive engagement ring to your bride Doing messy...
-
Transfer pricing) Lafayette Co., a profit center of Creole Enterprises, manu factures brake pads to sell internally to other company divisions and exter nally. A set of Lafayette brake pads normally...
-
(Transfer pricing for sen ices) Walsdorf Companys information technology department is developing a service department transfer price based on min utes of computer time. For 2006, its expected...
-
(Web research) Use the Internet to identify a multinational company encoun tering tax problems related to transfer pricing between its organizational units in different countries. Prepare a brief...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App