Homework Answers
Estimated and actual overhead costs are recognised and measured using the following four steps
1. Calculating the predetermined overhead rate : this you calculate using the following formula
Pre determined overhead rate = Estimated overhead costs / Estimated activity base
the base can be direct labor , machine hours , materials , etc.
Estimated overhead costs are usually based on past trends.
2. After you calculate the overhead rate you assign the overhead costs to products and services based on the predetermined overheads rate this is because it is difficult to keep track of each product / service consuming which overhead activities , so to save money and time we use predetermined overhead rate to allocate overheads
3.Then you measure the actual overheads during the period. this is a year end activity generally because all the actual costs are avialable now
4. Reconciling the difference of actual and applied overheads and adjusting underapplied or overapplied overheads appropriately
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order costing system? DQ4. CONCEPT Why do the concepts of cost underlie the four steps necessary to allocate overhe...
nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the...
nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the cost of ordering raw materials, which of the following is likely the best cost driver for this activity? a. Number of orders placed. b. Weight of the parts ordered. c. Square footage of the purchasing department area. d. Direct labor cost e. None of the answer choices is correct. e comfc future for safet materia local h e factor ta rela 17. Which of...
A normal job-order costing system is a system that determines unit cost by using: estimated costs...
A normal job-order costing system is a system that determines unit cost by using: estimated costs for direct materials, direct labor, and overhead. O actual costs for direct materials and direct labor and estimated costs for overhead. O actual costs for direct materials and estimated costs for direct labor and overhead. actual costs for direct materials and overhead and estimated costs for direct labor.
please answer each one individually thanks 2-1 What is job-order costing? 2-2 What is absorption costing?...
please answer each one individually thanks
2-1 What is job-order costing? 2-2 What is absorption costing? 2-3 What is normal costing? 2-4 How is the unit product cost of a job calculated? 2-5 Explain the four-step process used to compute a predetermined overhead rate. 2-6 What is the purpose of the job cost sheet in a job-order costing system? 2-7 Explain why some production costs must be assigned to products through an allocation process. 2-8 Why do companies use predetermined...
Match each costing system characteristic to job order costing, process costing, or both. Used by companies...
Match each costing system characteristic to job order costing, process costing, or both. Used by companies that manufacture identical items through a series of 1. 2 3. uniform production steps or processes Transfers costs from Work-in-Process Inventory to Finished Goods Inventory to Cost of Goods Sold Used by companies that manufacture unique products or provide specialized services Has multiple Work-in-Process Inventory accounts Tracks direct materials, direct labor, and manufacturing overhead costs 4. 5.
on 3 (30 points) The job-costing system at the Ale material movement machine mai Jobs. Alexander...
on 3 (30 points) The job-costing system at the Ale material movement machine mai Jobs. Alexander Fabricating the three maintenance, and other. The company is in the The following information is provided com Material movement costs Budested overhead Machine maintenance $ 490,000 5 770,000 Other S 680.000 Acthy Dee Material moves Machine hours Direct Labor hours Budo DO 1.000 0940,000 REQUIRED Show all Work 1. Compute the manufacturing overhead rate to be used to allocate overhead to each job under...
Bonne Nuit Ltd manufacture and sell top quality beds and mattresses. In the mattresses department, Bonne Nuit make pocket sprung, foam and latex mattresses. In the past, they have used absorption costing system to allocate overhead costs to their products
Bonne Nuit Ltd manufacture and sell top quality beds and mattresses. In the mattresses department, Bonne Nuit make pocket sprung, foam and latex mattresses. In the past, they have used absorption costing system to allocate overhead costs to their products, with labour hours as the allocation base. The following information relates to the production and sale of the three mattresses.Pocket sprungFoamLatexSelling price per unit£1,000£750£2,150Direct material cost per unit£238.50£156£219.60Direct labour cost per unit£90£60£150Direct labour hours to make one unit8610Annual production (units)1,4402,2961,400Number...
Job-Order Costing U-Design-It Furniture Company uses a job-order cost system. The company applies manufacturing overhead to...
Job-Order Costing U-Design-It Furniture Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $144,000 for the year and the estimated direct labor hours were 18,000 hours. In March, Job #175 was completed. Direct materials totaled $7,000. Total labor costs were $6,000 at $20 per hour. At the end of the year, it was determined that the company worked 17,000 direct labor hours...
Traditional costing system allocate overhead based on a standard unit-based measure that ll products have in...
Traditional costing system allocate overhead based on a standard unit-based measure that ll products have in common machine hours, processing time or direct labor hours but these allocation measures assume all overhead cost are directly related to units produced. Company uses a standard allocation method for overhead of 400% of direct labor costs. to produce 100000 units of product A requires $35000 of direct material and $80000 of direct labor costs. To produce 3000 units of product B requires $12000...
Exercise 19-7 Cost flows in job order costing P1 P2 P3 P4 The following information is...
Exercise 19-7 Cost flows in job order costing P1 P2 P3 P4 The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 $ $43,000 10,200 63,000 52,000 21,300 35,600 Inventories Raw materials. ........ Work in process.......... Finished goods. .............. Activities and information for May Raw materials purchases (paid with cash).. Factory payroll (paid with cash). Factory overhead Indirect materials....... Indirect labor... Other overhead costs ........... Sales...
Yorba Company manufactures cuckoo clocks and uses an activity-based costing system to allocate overhead to its...
Yorba Company manufactures cuckoo clocks and uses an activity-based costing system to allocate overhead to its products. Each cuckoo clock consists of 6 separate parts totaling $80 in direct materials, $40 in direct labor and requires 1.5 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.34 per part Machining Machine hours $2.50 per machine hour Assembling Number of parts $0.56 per part Packaging Number of finished units $2.19...
nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the cost of ordering raw materials, which of the following is likely the best cost driver for this activity? a. Number of orders placed. b. Weight of the parts ordered. c. Square footage of the purchasing department area. d. Direct labor cost e. None of the answer choices is correct. e comfc future for safet materia local h e factor ta rela 17. Which of...
A normal job-order costing system is a system that determines unit cost by using: estimated costs for direct materials, direct labor, and overhead. O actual costs for direct materials and direct labor and estimated costs for overhead. O actual costs for direct materials and estimated costs for direct labor and overhead. actual costs for direct materials and overhead and estimated costs for direct labor.
please answer each one individually thanks
2-1 What is job-order costing? 2-2 What is absorption costing? 2-3 What is normal costing? 2-4 How is the unit product cost of a job calculated? 2-5 Explain the four-step process used to compute a predetermined overhead rate. 2-6 What is the purpose of the job cost sheet in a job-order costing system? 2-7 Explain why some production costs must be assigned to products through an allocation process. 2-8 Why do companies use predetermined...
Match each costing system characteristic to job order costing, process costing, or both. Used by companies that manufacture identical items through a series of 1. 2 3. uniform production steps or processes Transfers costs from Work-in-Process Inventory to Finished Goods Inventory to Cost of Goods Sold Used by companies that manufacture unique products or provide specialized services Has multiple Work-in-Process Inventory accounts Tracks direct materials, direct labor, and manufacturing overhead costs 4. 5.
on 3 (30 points) The job-costing system at the Ale material movement machine mai Jobs. Alexander Fabricating the three maintenance, and other. The company is in the The following information is provided com Material movement costs Budested overhead Machine maintenance $ 490,000 5 770,000 Other S 680.000 Acthy Dee Material moves Machine hours Direct Labor hours Budo DO 1.000 0940,000 REQUIRED Show all Work 1. Compute the manufacturing overhead rate to be used to allocate overhead to each job under...
Exercise 19-7 Cost flows in job order costing P1 P2 P3 P4 The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 $ $43,000 10,200 63,000 52,000 21,300 35,600 Inventories Raw materials. ........ Work in process.......... Finished goods. .............. Activities and information for May Raw materials purchases (paid with cash).. Factory payroll (paid with cash). Factory overhead Indirect materials....... Indirect labor... Other overhead costs ........... Sales...
Yorba Company manufactures cuckoo clocks and uses an activity-based costing system to allocate overhead to its products. Each cuckoo clock consists of 6 separate parts totaling $80 in direct materials, $40 in direct labor and requires 1.5 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.34 per part Machining Machine hours $2.50 per machine hour Assembling Number of parts $0.56 per part Packaging Number of finished units $2.19...
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