Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below) Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing

image text in transcribed
image text in transcribed
[The following information applies to the questions displayed below) Burlington Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is $220,000. The firm employs 10 master clockmakers, who constitute the direct-labor force Each of these employees is expected to work 2,000 hours during the year, which represents each employee's practical capacity. The following events occurred during October 6. The firm purchased 3,500 board feet of mahogany veneer at $10 per board foot. b. Twenty brass counterweights were requisitioned for production Each weight cost $25 c. Five gallons of glue were requisitioned for production. The glue cost $20 per gallon. Glue is treated as an indirect material d. Depreciation on the clockworks building for October was $7000. e. A $500 utility bill was paid in cash t. Time cards showed the following usage of labor Job number G60: 12 grandfather's clocks, 1000 hours of direct labon Job number C81: 20 cuckoo clocks 700 hours of direct labor The master clockmakers (direct-labor personnel) earn $20 per hour 9. The October property tax bill for $920 was received but has not yet been paid in cash, h. The firm employs laborers who perform various tasks such as material handling and shop cleanup. Their wages for October amounted to $2.400 1. Job number G60, which was started in July, was finished in October. The total cost of the job was $14.400 Nine of the randfather's rinks from in number (6) were nld in Orther for $1400 each we yamons vrye were requisione or ProLUCon me yuccuSE PU pe Yah, GC 1 Cateu as area material d. Depreciation on the clockworks building for October was $7,000. e. A $500 utility bill was paid in cash. f. Time cards showed the following usage of labor. Job number G60: 12 grandfather's clocks, 1,000 hours of direct labor Job number C81: 20 cuckoo clocks, 700 hours of direct labor The master clockmakers (direct-labor personnel) earn $20 per hour. g. The October property tax bill for $920 was received but has not yet been paid in cash h. The firm employs laborers who perform various tasks such as material handling and shop cleanup. Their wages for October amounted to $2,400. 1. Job number G60, which was started in July, was finished in October. The total cost of the job was $14,400. J. Nine of the grandfather's clocks from job number G60 were sold in October for $1.400 each. Problem 3-43 Part 1 Required: 1. Calculate the firm's predetermined overhead rate for the year, Predetermined overhead rate per DLH

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

Financial Accounting

Authors: Belverd E Needles, Marian Powers

10th Edition

0547193289, 9780547193281

More Books

Students also viewed these Finance questions

Question

What forces are driving the added-value movement in HRM?

Answered: 1 week ago