Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its

image text in transcribed
image text in transcribed
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $183,000 Each department's overhead consists primarily of depreciation and other machine-related expenses Selected budgeted and actual data from the St Cloud plant for the past year are as follows Department Department B $ 120,000 $ 300,000 125,000 323,000 Budgeted department overhead (excludes plantude overhead Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity! Direct labor hours Machine hours 38.000 15.000 10,000 44,000 40,000 15,500 3,500 46.000 For the coming year, the accountants at the St Cloud plant are in the process of helping the sales force create bids for several jobs Projected data pertaining only to job no. 110 are as follows. $17,000 33,000 11.00 Direct materials Direct labor cost: Department A (2,200 h) Department 6 (se hr) Machine-hours projected: Department A Departments Units produced 150 1,200 11,000 Assume the St. Cloud plant uses three separate overhead rates to assign overhead costs to jobs. b-1. Find the plant wide overhead rate by using expected machine hours b-2. Find the department overhead rate using expected machine hours for Department A and Department b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed in b1 and 5-2 Complete this question by entering your answers in the tabs below. For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no 110 are as follows $17,000 33,000 Direct materials Direct labor cost: Department A (2.200 hrs Department (500 hr) Machine-hours profected: Department A Departments Units produced 11,000 150 1.200 11,000 Assume the St Cloud plant uses three separate overhead rates to assign overhead costs to jobs. b-1. Find the plant wide overhead rate by using expected machine hours. b-2 Find the department overhead rate using expected machine hours for Department A and Department B. b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed in b1 and b-2. Complete this question by entering your answers in the tabs below. Reg 1 Reg B2 Reg B3 Find the plant wide overhead rate by using expected machine hours. (Round your answer to 2 decimal places.) Plantside overhead rate per machine hour Req B2 >

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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions