1) | Predetermined overhead rates | |||||||
Molding | ||||||||
= (fixed overhead cost / Number of machine-hours ) + Variable overhead cost per machine hours | ||||||||
= ($497000/70000) +$1.50 | ||||||||
=$7.1+1.5 | ||||||||
=$8.6 per MH | ||||||||
Painting | ||||||||
= (fixed overhead cost / Number of labor hours ) + Variable overhead cost per labor hours | ||||||||
=($615000/60000) +$2 | ||||||||
=$10.25+2 | ||||||||
=$12.25 | per LH | |||||||
2) | Total Manufacturing overhead cost applied to Job 205 | |||||||
=(Machine hours in molding *$8.6 per MH) + (Labor hours in Painting *$12.25 per LH) | ||||||||
=(110 hours *$8.6) + (84 hours *$10.25) | ||||||||
=$1807 | ||||||||
3a) | total manufacturing cost recorded for Job 205 | |||||||
Department | Total | |||||||
Molding | Painting | |||||||
Direct materials | $ 770 | $ 1,332 | $ 2,102 | |||||
Direct labor | $ 525 | $ 1,470 | $ 1,995 | |||||
Manufacturing overhead | $ 946 | $ 861 | $ 1,807 | |||||
Total cost | $ 2,241 | $ 3,663 | $ 5,904 | |||||
3b) | If the job contained 50 units, what would be the unit product cost | |||||||
=total manufacturing cost/number of units | ||||||||
=$5904/50 | ||||||||
=$118.08 per unit | ||||||||
=$118 per unit (rounded off) |
High Desert Pottery works makes a variety of pottery products that it sells to retailers. The...
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 12,000 60,000 Machine-hours...
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 12,000 60,000 Machine-hours...
Check My Wor 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 Pixed...
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 compány provided the following estimates: Department Molding Painting 12,00 60,80e 70,000 8,0e0...
High Desert Potterworks 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...
NEED HELP WITH ALL REQUIREMENTS OF QUESTION 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:...
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 37,000 59,400 Machine-hours...
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 35,000 57,800 Machine-hours...
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 34,000 51,400 Machine-hours...
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...