Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 3.51BP
Analyze Manufacturing Overhead (Learning Objectives 3 & 5)
Sloan Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Sloan Company reports the following cost data for the past year:
| Budget | Actual | |
| Direct labor hours | 7,600 hours | 6,100 hours |
| Machine hours | 7,000 hours | 6,500 hours |
| $23,000 | $23,000 | |
| Indirect materials | $50,500 | 54000 |
| Depreciation on trucks used to deliver uniforms to customers | $16,000 | $15,000 |
| Depreciation on plant and equipment | $68,000 | $69,000 |
| Indirect manufacturing labor | $39,500 | $42,500 |
| Customer service hotline | $21,500 | $22,500 |
| Plant utilities | $38,000 | $40,500 |
| Direct labor cost | $72,500 | $86,500 |
Requirements
- 1. Compute the predetermined manufacturing overhead rate.
- 2. Calculate the allocated manufacturing overhead for the past year.
- 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of?
- 4. How can
managers use accounting information to help controlmanufacturing overhead costs ?
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Students have asked these similar questions
I have the following information: direct materials $250 and total manufacturing cost $700. Overhead applied to jobs at a rate of 200% of direct labor cost. This is for Chapter 2 job costing in managerial accounting. I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead.
I know the formula for conversion cost= direct labor + manufacturing OH
Prime cost= direct labor + direct materials
How do I figure out direct labor cost with the given information? The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor. Can you please help?
Thanks,
Erica Gordon
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead
based on the machine hours each job uses. Hartley Uniforms reports the following cost
data for the past year:
Budget
Actual
7,600 hours
6,100 hours
Direct labor hours
Machine hours
7,200 hours
6,300 hours
Depreciation on salespeople's autos
$23,000
$23,000
Indirect materials
$48,500
$50,500
Depreciation on trucks used to deliver
uniforms to customers
solla
$13,000
$70,000
$40,000
$11,000
Depreciation on plant and equipment
Indirect manufacturing labor
$72,500
$42,000
Customer service hotline
$19,000
$21,000
Plant utilities
$35,900
$38,400
Direct labor cost
$72,500
$85,500
Requirements
1odel tba
1. Compute the predetermined manufacturing overhead rate.
2. Calculate the allocated manufacturing overhead for the past year.
3. Compute the underallocated or overallocated manufacturing overhead. How will this
underallocated or overallocated manufacturing overhead be disposed of?
4.
How can managers usA acco
PIUK Learning Ma
Happy Valley Land and Snow Company provides the following ABC costing information:
Activities
Total Costs
Activity-cost drivers
Labor hours
$320,000
8,000 hours
Gas
$36,000
6,000 gallons
Invoices
$40,000
2,500 invoices
Total costs
$396,000
The above activities used by their three departments are:
Lawn Department Bush Department Plowing Department
Labor hours
2,500 hours
1,200 hours
4,300 hours
Gas
1,500 gallons
800 gallons
3,700 gallons
Invoices
1,600 invoices
400 invoices
500 invoices
How much of the labor cost will be assigned to the Lawn Department?
Select one:
a. $100,000
b. s25,600
c. S40,000
Chapter 3 Solutions
Managerial Accounting (5th Edition)
Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QCCh. 3 - Prob. 9QCCh. 3 - Prob. 10QC
Ch. 3 - Identify product costs, period costs, and product...Ch. 3 - Decide on product costing system (Learning...Ch. 3 - Determine the flow of costs between inventory...Ch. 3 - Understanding key document terms in a job cost...Ch. 3 - Compute a professional billing rate (Learning...Ch. 3 - Prob. 3.6SECh. 3 - Continuation of S3-6: compute total allocated...Ch. 3 - Continuation of S3-7: determine over- or under...Ch. 3 - Prob. 3.9SECh. 3 - Calculate job cost and billing at appliance repair...Ch. 3 - Calculating overallocated or underallocated...Ch. 3 - Prob. 3.12SECh. 3 - Record manufacturing labor costs (Learning...Ch. 3 - Prob. 3.14SECh. 3 - Prob. 3.15SECh. 3 - Understanding key terms (Learning Objectives 1, 2,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Prob. 3.18AECh. 3 - Determine the cost of a job and use it for pricing...Ch. 3 - Compute a predetermined overhead rate and...Ch. 3 - Prob. 3.21AECh. 3 - Prob. 3.22AECh. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Job cost and bid price at a consulting firm...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Understand the flow of costs in a job cost shop...Ch. 3 - Prob. 3.33BECh. 3 - Prob. 3.34BECh. 3 - Prob. 3.35BECh. 3 - Sustainability and job costing (Learning...Ch. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Prob. 3.43BECh. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Job costing or process costing for wedding...Ch. 3 - Discussion Questions 1. Why would it be...Ch. 3 - Unwrapped or How Its Made Go to www.YouTube.com...Ch. 3 - Ethics involved with choice of cost driver...Ch. 3 - Prob. 3.61ACTCh. 3 - Issues with cost of job (Learning Objectives 2, 3,...
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