Question

Requirement 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. of the company's resources machine hours than the other job. The accounting system should show that one job actually the other Requirement 4. Compute the total amount of overhead alocated to each job if the company uses its current plantwide overhead rate. Job 500 Job 501 Total direct labor hours x Plantwide allocation rate Overhead allocation Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Ans 3]

  

Particulars	Job 500 $	Job 501 $
Direct Material	1800	1800
Direct Labour [$30XDL 5]M/c Dept	150	150
Direct Labour [$30XDL 12]Assembly Dept	360	360
Manufacturing OverheadsM/c[680000/10000x10 & x20]	680	1360
Manufacturing Overheads Assembly[420000/14000x12]	360	360
Total Manu Cost	3350	4030
Job 501 uses more resources than Job 500

Ans 4]

Particulars	Job 500	Job 501
Total direct labour hours	17	17
Plantwide rate	50	50
Total overhead allocation	850	850

Ans 5]

Particulars	Job 500	Job 501
Overhead allocation M/c Dept[680000/10000x10 & x20]	680	1360
Overhead allocation Asse Dept420000/14000x12]	360	360
Total overhead allocation	1040	1720

Ans 6]

No. The first method allocateds manu. overheads on DL basis which allocates less cost and that to equally as DL for both jobs are same . Actually it is not showing proper allocation as overheads are apportioned less and that to equally. As per second method overheads are properly allocated on the basis on Departmetal Overheads rates which is a higher rate but indicates proper allocation according to usage of resources.

Ans 7]

Particulars	Job 500 $	Job 501 $
Direct Material	1800	1800
Direct Labour [$30XDL 5]M/c Dept	150	150
Direct Labour [$30XDL 12]Assembly Dept	360	360
Manufacturing OverheadsM/c[680000/10000x10 & x20]	680	1360
Manufacturing Overheads Assembly[420000/14000x12]	360	360
Total Manu Cost	3350	4030
Sales Price at 110% of Manu. Cost as per given info	3685	4433