Question

all parts of question b.

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 $240,000. 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 Department $ 162,000 170,000 $ 546,000 564,000 Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 54,000 12,000 15,000 52,000 55,500 12,700 14,000 54,000 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. Direct materials $21,000 Direct labor cost: Annon

Answer 1

b-1. Plantwide overhead rate = Budgeted plantwide overhead/Expected machine hours = $250000/(12000 + 52000) = $250000/64000 = $3.91 per machine hour

b-2. Department A overhead rate = Budgeted department overhead/Expected machine hours = $162000/12000 = $13.50 per machine hour

Department B overhead rate = Budgeted department overhead/Expected machine hours = $546000/52000 = $10.50 per machine hour

	Job 110
Direct materials	21000
Direct labor ($36000 + $10800)	46800
Overheads:
Plantwide overhead (1360 x $3.91)	5317.60
Department A overhead (160 x $13.50)	2160
Department B overhead (1200 x $10.50)	12600
Projected manufacturing cost $	87877.60

Kindly round off as required since no instructions have been provided with the question regarding the same.