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. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $232000. 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. Department A Department s Budgeted department overhead s 133,000 288,e90 303,000 (excludes plantwide overhead) Actual department overhead Expected total activity: 132,000 Direct labor hours Machine-hours 46,800 19,800 15,680 48,080 Actual activity: Direct labor hours Machine-hours 48,500 19,500 12,800 50,800 For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs Projected data pertaining only to job no. 110 are as follows. $19,000 Direct materials Direct labor cost: Department A (2,200 hr) Department B (1,200 hr) 33,000 7,600 Machine-hours projected: Depertment A Departeent B 120 ,200 12 3 of 3Naxt > arc lup

Answer 1