Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $240,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows:
The following information apoles to the questions displeyed below job arder costing system for its batch prodution processes The St. Fals plant hes two depetme wrech most jobs pess Plantwide oveheed wich Includes the plant manegers salaryccount cafeteria, and human esources, is budgeted at $250,000 During the pest year,ectual plantwide o 5240,000. ach depertment's oerted conaists primerity of depreciation and other machiner $150.000 60,000 $600.000 Expected totel activty Direct labor hours 15,000 Actual activity Direct labor hours 51000 10,500 9,000 42,000 Forthe coming year, the accourtants st St Fall inthe pocess of hetrgte sales force oes several jobs. Projected date pertaining only to job no. 11o are as follows Direct meterials Direct labor cost Depertment A Q.200 Depertment B (800 hr) 45,000 10,000 Department A Department B 200 1200 10,000 Units produced 10.00 points Instructions a-1. Assume the St. Fails plant uses asingle plantwide overhead rate to assign all and department) costs to jobs. Find the overheed rate by using expected direct labo Overhead rate $ 20 per direct labor hour 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