Question

The Gilster Company, a machine tooling firm, has several plants. One plant, located in st. Falls, Minnesota, uses a job order costing system for its batch production processes. The st. Falls plant has two departments through which most jobs pass. Plant wide overhead, which includes the plants manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual pantwide overhead was $195,000. Each department's overhead consists primarily of depreciation and other machine-related expenses, selected budgeted and actual data from the st. Falls plant for the past year are as follows.

The Glister Compama machine rooting fom has several plants. One plant, lented in St Fath, Minnesota vioso order conting system for as batch proaction processes. The st Falls plant has two deportinents through which most jobs para mantwide overhead which includes the manager's salary, counting personnel cafeterin, human resou b ted 200.000 During the year actual plan de verhead was 10.000. Each ceart overhead consirmy of depreciation and other chil d expenses Selected budgeted and actual and from the It Foto plant for the past year win an tollows. S conclutes plantatte overheads Actual departouchent Eroncted to activity 5000 3000 3500 200 Marinehou c ess of helping for rente bids for everal jobs. Proiected dat For the coming year, the accountants al SL Falls are in pertaining only to job no 110 are as follows De $16.000 37.00 9,000 Department A 000 h Department Machine-hour projected: Department Department Units produce 1200 Award: 1166 points Required: -1. Assure the St Fals plant uses a single plantwide overhead rate to assign all overhead plantwide and department) costs to jobs Find the overhead rate by using expected direct labor hours -2. Determine the projected amount of total manufacturing costs per unit for the units in job no. 110 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Determine the projected amount of total manufacturing costs per unit for the units in job no. 110. (Round your intermediate calculations and final answer to 2 decimal places.) Manufacturing costs for Job 110 per unit < Reg A1 Req A2 > m.mm.hmina me SinalePrint Viewe single uestion

Answer 1

Answer a-1:

Budgeted plant wide overhead (plant wide plus departmental) = $200000 + 169000 + 504000 = $873000

Budgeted plant wide direct labor hours = 34000 + 10000 = 44,000

Plant wide manufacturing overhead rate based on direct labor hour = Budgeted plant wide overhead / Budgeted plant wide direct labor hours

= 873000 / 44000

= $19.84 (rounded of 2 decimals)

Plant wide overhead rate $19.84 per DLH

Answer a-2:

Total direct labor hours required for Job 110 = 2000 + 500 = 2500 DLH

Overhead allocated to Job 110 = 2500 * 19.84 = $49,600

Total Manufacturing cost of Job 110 = Direct material + direct labor + Overhead allocated

= 16000 + (37000 + 9000) + 49600

= $111,600

Manufacturing cost per unit = 111600 / 9000 = $12.40

Manufacturing cost for Job 110 $12.40 Per Unit