Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs completed by the company during the year. Your goal is to complete the table shown below and comment on the insights that it provides:
Job | Sales | Direct Materials | Direct Labor | Applied Overhead | Total Job Cost | Gross Margin | |
1 | $ | 2,400 | ? | ? | ? | ? | ? |
2 | $ | 5,400 | ? | ? | ? | ? | ? |
3 | $ | 9,000 | ? | ? | ? | ? | ? |
4 | $ | 1,450 | ? | ? | ? | ? | ? |
5 | $ | 2,200 | ? | ? | ? | ? | ? |
6 | $ | 7,000 | ? | ? | ? | ? | ? |
7 | $ | 1,700 | ? | ? | ? | ? | ? |
8 | $ | 1,600 | ? | ? | ? | ? | ? |
9 | $ | 8,000 | ? | ? | ? | ? | ? |
10 | $ | 4,100 | ? | ? | ? | ? | ? |
11 | $ | 3,200 | ? | ? | ? | ? | ? |
12 | $ | 2,800 | ? | ? | ? | ? | ? |
Click here to download the Excel template, which you will use to answer the questions that follow.
Click here for a brief tutorial on PivotTables in Excel.
Click here for a brief tutorial on VLOOKUP in Excel.
Required:
6. Within the “Job Profitability”:
a. create formulas that compute the total job cost and gross margin for each of the 12 jobs.
b. What is the total cost of Jobs 3 and 12?
c. What is the gross margin Jobs 1 and 8?
The question could be answered
based on students knowledge to
interpret water fall chart.
Please refer to the attached image for the answer.
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Required:5. Go to the tab titled “Job Profitability.”:a. Using formulas that refer to your answers from requirements 1-4, calculate the direct materials, direct labor, and applied overhead cost for each of the 12 jobs. (Hint: Use VLOOKUP to reference values from the pivot tables you created in requirements 1 and 2.)b. What is the amount of applied overhead for Jobs 4 and 9?Required:6. Within the “Job Profitability”:a. create formulas that compute the total job cost and gross margin for each of the 12 jobs.b. What is...
CP19-46 (similar to) Using a job order costing system, Pierre Computer Company estimated the total cost of two jobs as follows: (Click the icon to view the estimates under job costing.) |(Click the icon to view the ABC information.) (Click the icon to view the records for two clients.) Pierre Computer Company is now considering using an ABC system. Information about ABC costs and records for the same two jobs for 2020 follow: Read the requirements. Requirement 1. Compute the...
1. What is the total manufacturing cost added to Work in Process
during the year?
2. What is the journal entry to record the transfer of completed
jobs that is referred to in item g above?
Record the manufactured goods completed during this year.
3. What is the ending balance in Work in Process?
4. What is the total amount of actual manufacturing overhead
cost incurred during the year?
5. Is manufacturing overhead underapplied or overapplied for the
year? By...