1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olchik [2.2K]
3 years ago
8

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin

ed overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Department
Cutting Finishing
Direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 30,000
Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000 5,000
Total fixed manufacturing overhead cost . . . . . . . . . . . . . . . . $264,000 $366,000
Variable manufacturing overhead per machine-hour . . . . . . .... $2.00 —
Variable manufacturing overhead per direct labor-hour . . . . . — $4.00
1. Compute the predetermined overhead rate to be used in each department.
2. Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:

Department
Cutting Finishing
Direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 20
Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 4
Materials requisitioned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 $310
Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $70 $150

Required:
Compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide overhead rate based on direct labor-hours, rather than using departmental rates? Explain. No computations are necessary.
Business
1 answer:
const2013 [10]3 years ago
6 0

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. Compute the predetermined overhead rate to be used in each department.

Given

Cutting Department

The Cutting Department bases its rate on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

The Finishing Department bases its rate on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department bases its rate on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ Calculated

The Finishing Department bases its rate on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% labour cost ------ Calculated

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If they use a plantwide rate based on direct labor cost and if the jobs has longer machine hours and small amount of labor cost they will be charged less overhead cost.

You might be interested in
The following totals for the month of June were taken from the payroll register of Ford Company. Salaries and wages $40,000 FICA
disa [49]

Answer:

Debit to Salaries and Wages Expense for $40,000

Explanation:

Based on the information given we were told that Salaries and wages was the amount of $40,000 which means that The Appropriate journal entry to record the monthly payroll on June 30 would include a DEBIT TO SALARIES AND WAGES EXPENSE FOR $40,000

Debit to Salaries and Wages Expense for $40,000

(To record monthly payroll)

7 0
3 years ago
According to the text, there are four different aspects of a decision that a business should evaluate in order to___ maximize pr
inna [77]

Answer: Legal, public relation, safety risk, financial.

Explanation:

The above are different aspects of a decision in order to maximize profit and be a good corporate citizen.

Financial decision taking with respect to capital structure.

Legal- legal rights and responsibilities.

Safety risk assessment and mitigation of safety risk.

Public relation communication that are strategic that builds mutually beneficial relationships.

3 0
3 years ago
The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Tanya [424]
True, they are called supply
3 0
3 years ago
During the middle years of last decade, the exchange rate of the U.S. dollar has declined against the currencies of its major tr
Aleks04 [339]

Answer:

Because there are other factors that influence the weakening or strengthening of the dollar, not just the dollar exchange rate in relation to the exchange rates of other countries' currencies.

Explanation:

Although the United States has registered increases in the trade deficit, that is, when the country imports more goods and services from abroad than it exports, there are other factors that determine whether the country's currency is valued or not. In the case of the dollar, its value has not decreased despite the fall in the exchange rate of the dollar in relation to the currencies of its main trading partners due to the fact that the dollar is the main reserve currency in the world, which means that the dollar is the fashion of commercial transaction in the world, therefore its value is not lost in relation to other currencies, since several important transactions in the world such as gold and oil commodities are traded in dollars.

There is also the fact that the US attracts a lot of international investment for US Treasury bills, which helps to strengthen the dollar.

6 0
3 years ago
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently
a_sh-v [17]

Answer:

my mind is blank. how is even an adult supposed to answer this. i read it and it makes no sense. pls rethink before u send ok?

just a top tip for u

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • An incident management step, in which an incident is transferred to a support staff member who has greater experience or resourc
    15·1 answer
  • Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data
    6·1 answer
  • Maris Brothers Inc. needs a cash disbursement schedule for the months of April, May, and June following information in its prepa
    10·1 answer
  • Rebecca sells her personal scooter for $550. She purchased the scooter for $700 three years ago. She also sells a painting for $
    12·1 answer
  • In Maddie's company, senior officers eat in the same cafeteria as the entry-level workers. On a trip to a different country, she
    6·1 answer
  • The reason for the multiplier effect is that a. businesses make decisions about investment projects based on anticipated profits
    15·1 answer
  • Using XXs for amounts, give the journal entry for each of the transactions, assuming perpetual inventory. (If no entry is requir
    11·1 answer
  • The following information pertains to Havana Corporation's defined benefit pension plan: ($ in 000s) 2018 2019 Beginning balance
    8·1 answer
  • Rhone-Metro Industries manufacturers equipment that is sold or leased.
    9·1 answer
  • Which of the following is NOT a part of personal financial planning?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!