Concept explainers
Multiple Predetermined
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a
Job 205 was started on August 1 and completed on August 10. The company’s cost records show the fo11oing information concerning the job:
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.
3. That would be the total
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Introduction To Managerial Accounting
- 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).arrow_forwardHigh 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 Department Molding 38,500 81,000 $ 251,100 $ 2.60 Painting 50,000 40,000 $ 460,000 $ 4.60 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Direct labor-hours Machine-hours Direct materials Direct labor cost Required: Department Molding 70 Painting 390 $ 934 $ 720 126…arrow_forwardped Dok int ences High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company's job-order costing system uses departmental predetermined overhead rates 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 materiale Direct labor cont Department Holding 75 330 $938 5600 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Painting 130 71 Department $1,160 $ 960 Molding 39,500 83,000 $ 240,700 $2.40 0 Painting 54,700 30,000 $ 519,650 0…arrow_forward
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- High Desert Potteryworks makes a varlety of pottery products that It sells to retallers. 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 Palnting Department Is based on direct labor- hours. At the beglnning of the year, the company provided the following estimates: Department Molding Painting Direct labor-hours 33,000 82,000 $229,600 $494,700 51,000 35,000 Machine-hours Fixed manufacturing overhead cost variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 2.40 24 4.40 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 Molding Painting Direct labor-hours 78 126 Machine-hours 370 73 Direct materials $ 950 $ 700 $1,300 $1,010 Direct labor…arrow_forwardMadani Sdn Bhd produces variety of furniture products that is sell to retailer such as Home Depot. The company use a job order costing system in which predetermined overheads rates are used to apply manufacturing overheads cost to jobs. The predetermined overhead rate in the Spraying Department based on machined hours, and the rate in the Assembly Department is based on direct labour hours. At the beginning of the year, the company’s management made the following estimate: Department Spraying Assembly Direct labour hours 12,000 60,000 Machine hours 70,000 8,000 Direct material cost RM510,000 RM650,000 Direct labour cost RM130,000 RM420,000 Fixed manufacturing overhead cost RM497,000 RM615,000 Variable manufacturing overhead per machine hour RM1.50 - Variable manufacturing…arrow_forwardMadani Sdn Bhd produces variety of furniture products that is sell to retailer such as Home Depot. The company use a job order costing system in which predetermined overheads rates are used to apply manufacturing overheads cost to jobs. The predetermined overhead rate in the Spraying Department based on machined hours, and the rate in the Assembly Department is based on direct labour hours. At the beginning of the year, the company’s management made the following estimate: Department Spraying Assembly Direct labour hours 12,000 60,000 Machine hours 70,000 8,000 Direct material cost RM510,000 RM650,000 Direct labour cost RM130,000 RM420,000 Fixed manufacturing overhead cost RM497,000 RM615,000 Variable manufacturing overhead per machine hour RM1.50…arrow_forward
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