Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The job-costing system at Sharon's Custom Framing has five indirect-eost pools (purchasing, material handling, machine maintonance. product inspection, and packaging). The company is in the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The job-costing system at Sharon's Custom Framing has five indirect-eost pools (purchasing, material handling, machine maintonance. product inspection, and packaging). The company is in the process of bidding on two lobs; Job 215, an order of 15 intricate personalized trames, and Job 325 , an order of six standard personalized frames. The controler wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indiect-cost pool and the budgeted quantity of each activity driver are as follows. (Click the icon to view the cost and driver data.) [Click the icon to view the job data.] Read the requirements. Requirement 1. Compute the total overhead alocated to each job under a simple costing system, whore overhead is allocatod based on machine-hours. Begin by calculating the overhead rale under the simple costing system. First select the formula, then enter the applicable ameunts and calculate the rate. (Round your answer to the nearest cent Abbeeviations usod: bgt = budgeted, mach = mechine, mat = material, purch, = purchase, aly. = quantay) system at Sharon's Custom Framing has five indirect-cost pools (purchasing, material handling, machine maintenance, produ ding on two jobs; Job 215, an order of 15 intricate personalized frames, and Job 325 , an order of six standard personalized frar of the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each i Data table tem at Sharon's Custom Framing has five indirect-cost pools (purchasing, material handling, machine maintenance, prod on two jobs; Job 215, an order of 15 intricate personalized frames, and Job 325, an order of six standard personalized fra current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each More info Information related to Job 215 and Job 325 follows. Job 215 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 325 . The job-costing system at Sharon's Custom Framing has five indirect-cost pools (purchasing, material handing, machine maintenance, product inspection process of bidding on two jobs; Job 215, an order of 15 intricate personalized frames, and Job 325 , an order of six standard personalized frames. The con allocated under the current simple job-costing system and a newly designed activity-based job-costing systern. Total budgeted costs in each indirect-cost p activity driver are as follows. (Click the icon to view the cost and driver data.) (Click the icon to view the job data.) Read the requirements. Requirement 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. Begin by calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the rate. Abbreviations used: bgt. = budgeted, mach. = machine, mat. 1 material, purch, = purchase, qty, = quantity.) The job-costing system at Sharon's Custom Framing has five indirect-cost pools (purchasing, material handling, machine maintenance, product inspect process of bidding on two jobs; Job 215, an order of 15 intricate personalized frames, and Job 325 , an order of six standard personalized frames. The 0 allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect-cos activity driver are as follows. (Click the icon to view the cost and driver data.) (Click the icon to view the job data.) Read the requirements. Requirement 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. Begin by calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the rate Abbreviations used: bgt = budgeted, mach. = machine, mat. = material, purch. = purchase, qty. = quantity.)

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

Quality Auditing A Tool For Excellence

Authors: David Mills, J. Mills

1st Edition

041245890X, 978-0412458903

More Books

Students also viewed these Accounting questions

Question

6. Describe why communication is vital to everyone

Answered: 1 week ago