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(Solved) Machine-hours 86,000 Fixed manufacturing overhead cost $ 1,272,000 Variable manufacturing overhead per computer-hour $ 3.


 

      
  Machine-hours   86,000  
  Fixed manufacturing overhead cost $ 1,272,000  
  Variable manufacturing overhead per computer-hour $ 3.70  

 

    During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

 

        
  Machine-hours   60,000  
  Manufacturing overhead cost $ 1,209,000  

 

Required:
1.

Compute the company’s predetermined overhead rate for the year. (Round your answer to 2 decimal places.)

   

       

2.

Compute the underapplied or overapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)

   

       

3.

Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.)

   

       

High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company's management made the following estimates:

 

   Department
 
   Molding Painting
  Direct labor-hours 34,000    59,300   
  Machine-hours 88,000    39,000   
  Direct materials cost $185,000    $195,000   
  Direct labor cost $289,000    $514,000   
  Fixed manufacturing overhead cost $281,600    $563,350   
  Variable manufacturing overhead per machine-hour $2.20    -      
  Variable manufacturing overhead per direct labor-hour -       $4.20   

   

    Job 205 was started on August 1 and completed on August 10. The company's cost records
show the following information concerning the job:

    

   Department
 
   Molding Painting
  Direct labor-hours 70      135     
  Machine-hours 370      74     
  Materials placed into production $942      $1,120     
  Direct labor cost $740      $970     

   

Required:
1.

Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.)

   

         

2.

Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)

   

         

3-a.

What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)

   

         

3-b.

If the job contained 29 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)

   

         

4.

At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year:

  

   Department
 
   Molding Painting
  Direct labor-hours 27,000      59,000     
  Machine-hours 87,700      24,800     
  Direct materials cost $162,600      $415,000     
  Direct labor cost $108,000      $436,000     
  Manufacturing overhead cost $484,080      $771,000     

 

 

What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).)

   

         

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow:

         

    Units Materials Labor Overhead
  Work in process inventory, beginning 57,000   $ 51,000     $ 19,300    $ 27,900   
  Units started in process 539,000              
  Units transferred out 560,000              
  Work in process inventory, ending 36,000              
  Cost added during the month   $ 673,750     $ 238,370    $ 344,290   

 

       

The beginning work in process inventory was 75% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 55% complete with respect to materials and 35% complete with respect to labor and overhead.

     

Required:
Assume that the company uses the weighted-average method of accounting for units and costs.

     

1. Compute the equivalent units for the month for the first department.

  

     

2. Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

  


 


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