please answer in detail with explanation computation formula thanksplease answer all parts million thanks Problem 2-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4]High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system inwhich departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predeterminedoverhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates:Direct labor-hoursMachine-hoursFixed manufacturing overhead cost.Variable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hourDirect labor-hoursMachine-hoursDirect materialsDirect labor costDepartmentMolding87400$936$ 710Painting13170DepartmentJob 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerningthe job:$ 1,160$980Molding30,50089,000$ 204,700$ 2.800Painting51, 10033,000$ 449,6800$ 4.80Required:1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.2. Compute the total overhead cost applied to Job 205. Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3A Required 38Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round youranswers to 2 decimal places.)Molding DepartmentPainting DepartmentPredetermined OverheadRateper MHper DLHComplete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3A Required 38Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round otherIntermediate calculations and final answer to the nearest dollar amount.)Total overhead costDirect materialsDirect labor< Required 1Complete this question by entering your answers in the tabs below.Manufacturing overheadTotal costRequired 2 >Required 1 Required 2Required 3A Required 38Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round otherintermediate calculations and final answer to the nearest dollar amount.)Total overhead cost< Required 1What would be the total manufacturing cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places.Round other intermediate calculations and final answers to the nearest dollar amount.)Molding PaintingDepartment Department< Required 2Required 3A >TotalRequired 3A >Required 38 >

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Description: please answer in detail with explanation computation formula thanksplease answer all parts million thanks Problem 2-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4]High Desert Potteryworks makes a variety of po

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High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Department Painting 131 70 Molding 87 400 $ 936 $ 710 Department $ 1,160 $ 980 Molding Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: 30,500 89,000 $ 204,700 $ 2.80 Painting 51,100 33,000 $ 449,680 0 $ 4.80 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205.

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Department Painting 131 70 Molding 87 400 $ 936 $ 710 Department $ 1,160 $ 980 Molding Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: 30,500 89,000 $ 204,700 $ 2.80 Painting 51,100 33,000 $ 449,680 0 $ 4.80 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2PB: Multiple production department factory overhead rates The management of Spotted Cow Dairy Company,...

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JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M. Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or over applied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102,103, and 104, direct labor hours are 12, 000, 10,000, 11, 000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour. (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101104 using the predetermined factory overhead rate (see above). (i) Finished Job Nos. 101103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and for 50,000 and 45,400, respectively. (k) Transferred under- or over applied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). 2. Post the entries to the work in process and finished goods accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.
JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or overapplied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102, 103, and 104, direct labor hours are 12,000, 10,000, 11,000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101-104 using the predetermined factory overhead rare (see above). (i) Finished Job Nos. 101-103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and O for 50,000 and 45,400, respectively. (k) Transferred under- or overapplied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). Make compound entries for (b), (d), and (h), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.
The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Instructions 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department. 2. Determine the product factory overhead costs, using the multiple production department rates in (1).
Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.
Multiple production department factory overhead rates The management of Spotted Cow Dairy Company, described in Problem 1B, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Instructions Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department. Determine the product factory overhead costs, using the multiple production department rates in (1).
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 9 21 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485
2 Applying Assignment ← Jackson Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based View the costs. Read the requirements. Requirement 1. Compute Jackson Factory's predetermined overhead allocation rate. Predetermined overhea allocation rate per machine H Requirement 2. Prepare the journal entry to allocate manufacturing overhead. (Record debits first, then credit Accounts and Explanation pages $ Estimated overhead cost 880,000 Question 2, EM2-24 (similar to) Part 2 of 6 Date Dec. 31 Get more help. Estimated machine hours 80,000 $ 11 Debit Credit Costs At the beginning of 2025, the company expected to incur the following: $880,000 Manufacturing overhead costs Direct labor costs 1,440,000 Machine hours 80,000 hours At the end of 2025, the company had actually incurred: Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours…
Problem 2-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4) High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor hours. At the beginning of the year, the company provided the following estimates Direct labor hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor hour Direct labor-hours Machine hours Direct materials Direct labor cost Department Holding 90 380 $.934 $740 Painting 131 70 Department Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning…
Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Overhead costs (expected) Normal activity (machine hours) Required: Department A Department B 1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places. 5.75 ✔per machine hour Plantwide 2. Compute predetermined overhead rates for each department using machine hours. (Note: Round to two decimal places, if necessary.) 8.28 ✔ per machine hour 2.89✔ per machine hour Departmental $ 3. Conceptual Connection: Job 73 used 20 machine hours from Department A and 50 machine hours from Department B. Job 74 used 50 machine hours from…
Assigning indirect costs to departments is completed by ________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory In a process costing system, which account shows the overhead assigned to the department? cost of goods sold • finished goods inventory raw material inventory work in process inventory A print shop produces custom paintings. It has received four different orders (a/B/C/D) The total cost for the four orders is labor $6000, materials $10,000 and overheads for 5,000. What processes/systems would you implement if you wanted to know the cost for each of the orders which are not similar.
Copr. Goed Cosmo Co. uses a job order costing system. Manufacturing overhead is applied using departmental overhead rates. Cosmo has two departments, mixing and bottling. Job A6 was recently completed. Data from the job cost card for job A6 is presented below. $180 direct material $210 direct labor $1.260 manufacturing overhead bottling department $690 manufacturing overhead mixing department Job A6 consists of 200 units. What is the cost per unit? $11.70 $1.95 $8.25 $5.40 SUBMIT
Pratice Problem 2: A company's individual job sheets show these costs: A chart showing costs for Jobs 131, 132, and 133. Direct materials is RO 4585, RO 8723, and RO 1575 respectively. Direct labor is RO2385, RO 2498, and RO 2874, respectively. Overhead is applied at 1.25 times the direct labor cost. You are required to : Prepare an entry to record the assignment of direct materials to work in process. Prepare an entry to record the assignment of direct labor to work in process. Prepare an entry to record the assignment of manufacturing overhead to work in process.