ZuoTi.Pro
Question

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates Department Cutting Finishing Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 79,000 2,500 390,000 566,000 7,600 65,900 $ 3.00 $4.75 Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following Department Cutting Finishing Direct labor-hours Machine-hours Direct materials Direct labor cost 16 83 $770 $100 $370 $320

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

Hi

Let me know in case you face any issue:

Answers are highlighted in Yellow: Predetermined overhead rate (Estimated manufacturing overhead/ Base) Cutting Department: Cutting Department Finishing Department: Finishing Department: Total Overhead cost applied to Job 203: Solution: 1) Variable $ 3.00 $ 5.92 Fixed (390000/65900) $ 8.92 per MH $ 4.75 $ 7.16 Variable Fixed (566000/79000) 11.91 per DLH 2) Cutting Finishin Total Overhead cost applied to Job 205 (83*8.92) 16 11.91 $ 740 $ 191 $ 931 Step.01 Direct Materia Direct Labor Overhead Total Manufacturing cost for Job 203 $ 1,140 $ 420 $ 931 $ 2,491 770+370) (100+320) Step.02 3) Yes Because, machine hour and direct labor numbers are different.

3 0
Add a comment
Know the answer?
Add Answer to:
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting Finishing 6,600 62,000 60,900 3,200...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 6,600 65,000 Machine-hours 57,300 3,200 Total fixed manufacturing overhead cost $ 390,000 $ 443,000 Variable manufacturing overhead per machine-hour $ 3.00...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting Finishing 8.900 36.000 60,900 3,600...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 6,700 87,000 Machine-hours 67,200 3,100 Total fixed manufacturing overhead cost $ 390,000 $ 490,000 Variable manufacturing overhead per machine-hour $ 3.00...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 9,000 77,000 Machine-hours 56,600 3,600 Total fixed manufacturing overhead cost $ 390,000 $ 527,000 Variable manufacturing overhead per machine-hour $ 4.00...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 6,600 78,000 Machine-hours 68,300 2,400 Total fixed manufacturing overhead cost $ 360,000 $ 588,000 Variable manufacturing overhead per machine-hour $ 4.00...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 8,100 81,000 Machine-hours 59,900 2,900 Total fixed manufacturing overhead cost $ 380,000 $ 583,000 Variable manufacturing overhead per machine-hour $ 4.00...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting Finishing 6,900 73,000 56,400...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 7,600 73,000 Machine-hours 66,500 2,800 Total fixed manufacturing overhead cost $ 400,000 $ 575,000 Variable manufacturing overhead per machine-hour $ 4.00...

  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and...

    White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 8,400 70,000 Machine-hours 62,200 1,800 Total fixed manufacturing overhead cost $ 390,000 $ 487,000 Variable manufacturing overhead per machine-hour $ 3.00...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT