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

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

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

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

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 Required:
 1. Compute the companyâ€™s predetermined overhead rate for the year.Â (Round your answer to 2 decimal places.) Â Â

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

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 3. Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry.Â (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.) Â Â

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 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:

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

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

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

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

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

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

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

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 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:

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

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 Â What was the amount of underapplied or overapplied overhead in each department at the end of the year?Â (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).) Â Â

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

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

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 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.

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

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

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

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