Question

Highland Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. | Activity setups purchasing other overhead Cost $ 100,000 70,000 250,000 | Driver number of setups number of parts of parts direct labor hours Amount of driver 5,000 20.000 50,000 The following information about the jobs was given for October Job 1004 Balance 10/1 direct materials direct labor number of setups number of parts direct labor hours Job 1001 $44,900 60,000 80,000 40 300 5,000 Job 1002 $60,700 40,000 38,500 10 180 2,400 Job 1003 $30,500 35,000 43,000 30 400 5.200 50,000 71.000 200 500 1,200 By October 31, Jobs 1001 and 1003 were completed and sold. The remaining jobs were still in process. Required: 1. Calculate the activity rates for each overhead activity. 2. Calculate the cost of each job for October 31 3. What is the beginning work in process on October 1 and November 1? 4. What is the cost of goods manufactured? 5. What is the cost of goods sold? (Ctrl)

Answer 1

cost Seuns Purchasing other overhead chead 100,000 70,000 250,000 Amount of driver Activity rate 5,000 20.00 20,000 3.50 50,000 5.00 2) Job 1001 Job 1002 Category Direct material Direct labour Overhead Total cost 60,000.00 80,000.00 26,850.00 166,850.00 40,000 38,500 12,830 91,330 Job 1003 35,000 43,000 28,000 106,000 Job 1004 50,000 71,000 11,750 132,750 3) Oct 1st Nov 1st 136,100 224,080 4) Cost of goods mfg 496,930 5) Cost of goods sold 272,850