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

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The Glister Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota. uses 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 5183.000. 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 Budgeted department overhead (excludes plantide overhead) $ 120,000 5308,000 Actual department overhead 125,000 323.000 Expected total activity: Direct labor hours 38.000 10,000 Machine-hours -15,000 44,000 Actual activity: Direct labor hours 40,000 8.600 Machine-hours 15.500 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 11,000 Direct materials Direct labor cost Department A (2,200 he Department (500 hr) Machine-hour's projected: Department A Department Units produced 150 1,200 11,000 . Would your response to parte change if the St Cloud plant could use the facilities necessary to produce parts for job no 110 for another job that could earn an incremental profit of $17,000? Incremental profit earned by producing the other job Incremental cost of buying the parts from the subcontractor Increase in total profits The Glister Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota. uses 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 5183.000. 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 Budgeted department overhead (excludes plantide overhead) $ 120,000 5308,000 Actual department overhead 125,000 323.000 Expected total activity: Direct labor hours 38.000 10,000 Machine-hours -15,000 44,000 Actual activity: Direct labor hours 40,000 8.600 Machine-hours 15.500 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 11,000 Direct materials Direct labor cost Department A (2,200 he Department (500 hr) Machine-hour's projected: Department A Department Units produced 150 1,200 11,000 . Would your response to parte change if the St Cloud plant could use the facilities necessary to produce parts for job no 110 for another job that could earn an incremental profit of $17,000? Incremental profit earned by producing the other job Incremental cost of buying the parts from the subcontractor Increase in total profits

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