Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 16, Problem 4MAD
Brady Furniture Company manufactures wooden oak furniture. The company employs a
Dining tables are the most difficult furniture item in Brady’s catalog to manufacture. Thus, the most skilled employees are scheduled to make dining tables, unless they are required for other jobs.
- a. Determine the material cost per unit for each job.
- b. Use the January material cost per unit for each type of furniture as the base material cost. For each month and each type of furniture, determine the unit material cost as a percent of the base unit material cost. Round percent to one decimal place. Use the following table format:
- c. Develop a line chart of the percent of unit material cost to the base unit material cost. Place the months on the horizontal axis and use three lines for the three different types of furniture.
- d.
Interpret the chart. What is happening to the dining tables?
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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:
Department
Molding
Painting
Direct labor-hours
36,500
59,800
Machine-hours
87,000
34,000
Fixed manufacturing overhead cost
$
208,800
$
532,220
Variable manufacturing overhead per machine-hour
$
3.20
-
Variable manufacturing overhead per direct labor-hour
-
$
5.20
Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:
Department…
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of
each bike. Estimated costs and expenses for the coming year follow:
Bike parts
Factory machinery depreciation
Factory supervisor salaries
Factory direct labor
Factory supplies
Factory property tax
Advertising cost
Administrative salaries
Administrative-related depreciation
Total expected costs
Required:
1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour.
2. Determine the amount of applied overhead if 18,600 actual hours are worked in the upcoming year.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
$ 341,800
61,500
140,000
211,998
Predetermined Overhead Rate
39,400
33,750
22,500
55,000
19, 200
$925,148
Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour.
Note: Round your answer to 2 decimal…
Speedy Auto Repairs uses job-order costing. Its direct materials consist of replacement parts installed in customer vehicles, and its
direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's
salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room.
The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following
estimates:
Direct labor-hours required to support estimated output
Fixed overhead cost
Variable overhead cost per direct labor-hour
Required:
1. Compute the predetermined overhead rate.
2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information pertains to
his job:
Direct materials
Direct labor cost
Direct labor-hours used
36,000
$ 540,000
$ 1.00
$ 685
$ 153
7
Compute Mr. Wilkes' total job cost.
3. If Speedy…
Chapter 16 Solutions
Financial And Managerial Accounting
Ch. 16 - A. Name two principal types of cost accounting...Ch. 16 - What kind of firm would use a job order cost...Ch. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - What is a job cost sheet?Ch. 16 - Prob. 6DQCh. 16 - Discuss how the predetermined factory overhead...Ch. 16 - A. How is a predetermined factory overhead rate...Ch. 16 - A. What is (1) overapplied factory overhead and...Ch. 16 - Describe how a job order cost system can be used...
Ch. 16 - Issuance of materials On May 7, Bergan Company...Ch. 16 - Direct labor costs During May, Bergan Company...Ch. 16 - Factory overhead costs During May, Bergan Company...Ch. 16 - Applying factory overhead Bergan Company estimates...Ch. 16 - Job costs At the end of May, Bergan Company had...Ch. 16 - Cost of goods sold Pine Creek Company completed...Ch. 16 - Transactions in a job order cost system Five...Ch. 16 - The following information is available for the...Ch. 16 - Cost of materials issuances under the FIFO method...Ch. 16 - Prob. 4ECh. 16 - Kingsford Furnishings Company manufactures...Ch. 16 - A summary of the time tickets is as follows:...Ch. 16 - Entry for factory labor costs The weekly time...Ch. 16 - Schumacher Industries Inc. manufactures...Ch. 16 - Eclipse Solar Company operates two factories. The...Ch. 16 - Exotic Engine Shop uses a job order cost system to...Ch. 16 - Predetermined factory overhead rate Obj. 2...Ch. 16 - The following account appears in the ledger prior...Ch. 16 - Collegiate Publishing Inc. began printing...Ch. 16 - The following events took place for Rushmore...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Barnes Company uses a job order cost system. The...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job cost sheet Remnant Carpet Company sells and...Ch. 16 - Analyzing manufacturing cost accounts Fire Rock...Ch. 16 - Prob. 5PACh. 16 - Entries for costs in a job order cost system Royal...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job cost sheet Stretch and Trim Carpet Company...Ch. 16 - Analyzing manufacturing cost accounts Clapton...Ch. 16 - Prob. 5PBCh. 16 - Antolini Enterprises produces mens sports coats...Ch. 16 - Alvarez Manufacturing Inc. is a job shop. The...Ch. 16 - Raneri Trophies Inc. uses a job order cost system...Ch. 16 - Brady Furniture Company manufactures wooden oak...Ch. 16 - Ethics in Action TAC Industries Inc. sells heavy...Ch. 16 - Team Activity As an assistant cost accountant for...Ch. 16 - Prob. 3TIFCh. 16 - RIRA Company makes attachments such as backhoes...Ch. 16 - Todd Lay just began working as a cost accountant...Ch. 16 - Baldwin Printing Company uses a job order cost...Ch. 16 - John Sheng, a cost accountant at Starlet Company,...Ch. 16 - Lucy Sportswear manufactures a specialty line of...Ch. 16 - Patterson Corporation expects to incur 70,000 of...
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