Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The

image text in transcribed
image text in transcribed
image text in transcribed
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, whilch was started and completed during the year, showed the following: Using the prodetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantally different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, father than using departmental rates? Complete the question by entering your answers in the tabs given below. Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) White Company has two departments, Cutting and Finkshing. The company uses a job-order costung system and computes a predetermined overhead rate in each department. The Cuming Department bases its rate on machine-hours, and the Finiching Deparment bases nis rate on drect labor-hours. At the beginning of the year, the company made the following estimates: Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheot for Job 203, which was started and completed during the year, showed the following Using the predotermined ovemead rates that you computed in requitrement (3, compute the total manufacturing cost assigned to Job 203. 3. Would you expoct substarnally different amounts of overhead cost to be asslgned to some jobs if the company used a plantwide predeteimined overhead reme based on diroct labor fiours, rathor than using departmental ratos? Complete the question by entering rour answers in the tabs given below. Using the prodetermined overhand rates that you computed in requirement (1), compute the total manufacturing cost assigeed to Job 2.03 . (Round intermediate calculations to 2 decimal placea and ifinal Mickley Company's plantwide predetermined overhead rate is $2200 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-500: Required: 1. What is the total manufacturing cost assigned to Job A-500? 2 If Job A 500 consists of 50 units, what is the unit product cost for this Job? (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions