Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available:
a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively.
b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows:
Job No. | Direct Material | Direct Labor | Machine Hours | ||||||
64 | $ | 21,000 | $ | 35,000 | 1,200 | ||||
65 | — | 22,000 | 700 | ||||||
66 | 44,000 | 65,000 | 2,000 | ||||||
67 | 15,000 | 8,800 | 500 | ||||||
c. Manufacturing overhead during the first quarter included charges
for depreciation ($33,900), indirect labor ($60,200), indirect
materials used ($5,100), and other factory costs ($139,600).
d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,800 for the firm.
1. Determine the company’s predetermined overhead application rate (per machine hour)
2. Determine the cost of jobs still in production as of March 31. (Round your answer to 2 decimal places.)
3. Did the finished-goods inventory increase or decrease during the first quarter? By how much? (Do not round intermediate calculations.)
4. Was manufacturing overhead under- or overapplied for the first quarter of the year? By how much? (Do not round intermediate calculations.)
Answer:
1)Pre determined overhead rate = $49.5
2) cost of jobs still in production = $256550
3)Yes there is increase in finished goods by $199500
4) Overheads are under applied by $21,000
Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the...
Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company...
Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,300). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $840,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used,...
3. ?? 4.?? 5.?? The following information applies to the questions displayed below. Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $824,000, and 16,000 hours, respectively. b....
Required information [The following information applies to the questions displayed below.) Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,400). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company...
Can someone help me determine the correct responses to this muli-part question?? Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,200) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The...
Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,400). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $824,000, and 16,000 hours, respectively. b. The company...
Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,300). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $824,000, and 16,000 hours, respectively. b. The company...
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Can someone help me find the cost of jobs still in production as of March 31?? Ive seen multiple responses to this problem online that are incorrect Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,200) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis...
1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.) 3. Determine the cost of jobs still in production as of March 31. (Round your answer to 2 decimal places.) Cost of the jobs in production 4. Did the finished-goods inventory increase or decrease during the first quarter? By how much? (DO not round intermediate calculations.) The finished-goods inventory by 5. Was manufacturing overhead under-or overapplied for the first quarter of the year? By how...