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Strike441 [17]
3 years ago
12

Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho

urs. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 70,000 Total fixed manufacturing overhead cost $511,000 Variable manufacturing overhead per direct labor-hour $ 2.10 Recently, Job K913 was completed with the following characteristics: Total direct labor-hours 150 Direct materials $ 705 Direct labor cost $4,650 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice
Business
1 answer:
vitfil [10]3 years ago
8 0

Answer:

Total cost= $6,765

Explanation:

Giving the following information:

Total direct labor-hours 70,000

Total fixed manufacturing overhead cost $511,000

Variable manufacturing overhead per direct labor-hour $ 2.10

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (511,000/70,000) + 2.1

Predetermined manufacturing overhead rate= $9.4 per direct labor hour

<u>Job K913:</u>

Total direct labor-hours 150

Direct materials $ 705

Direct labor cost $4,650

Total cost= 705 + 4,650 + (150*9.4)

Total cost= $6,765

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Answer and Explanation:

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4 years ago
Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine
Snezhnost [94]

Answer:

1. Predetermined Overhead Rate = Manufacturing overhead costs  / Machine Hours

Predetermined Overhead Rate = $216,000/2,700 hours

Predetermined Overhead Rate = $80 per machine hour

2. Allocated overheads =Predetermined Overhead Rate * Machine hours used by Job 551

Allocated overheads = $80 * 90 machine hour

Allocated overheads = $7,200

3. Date     Description                             Debit     Credit

 15/01     Work In Progress Inventory    $7,200      

                   Manufacturing overhead                   $7,200

               (To record allocation of overheads towards Job 551)

5 0
3 years ago
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erastova [34]

Answer:

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4. People are amazed at the things he can accomplish with one hand.

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Explanation:

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5 0
3 years ago
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company
skad [1K]

Answer:

a. $13

b. $20,625 Unfavorable

Explanation:

a. Computation of overhead volume variance is shown below:-

Variable overhead rate = Variable overhead cost ÷ Expected standard hours

= $275,000 ÷ 25,000

= 11 direct labor hour

Fixed overhead rate = Productive capacity ÷ Expected standard hours

= $50,000 ÷ 25,000

= $2 direct labor hour

Total overheard rate = Variable overhead rate + Fixed overhead rate

= $11 + $2

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b. The computation of overhead controllable variance is shown below:-

Variable overhead cost = Overhead rate × Standard hours

= $11 × 21,875

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Fixed overhead cost = Overhead rate × Standard hours

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Actual result = $305,000

Variance = Actual result - overhead cost applied

= $305,000 - $284,375

= $20,625 Unfavorable

Working note:-

Standard direct labor hours = Actual units ÷ Standard hours

= 35,000 × 1.6

= $21,875

Standard units per hour = (Standard capacity × Expected production) ÷ Standard hours

= (50,000 units × 80%) ÷ 25,000 hours

= 1.6 units per hour

8 0
3 years ago
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