Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Calculating Predetermined Overhead Rates and Job Costs Kody Corporation employs a job-order costing system with a plant wide overhead rate based on the machine-hours. At the starting of the year, the company made the following estimates:

1885_requried.jpg

Required:

1. find out the predetermined overhead rate.

2. Throughout the year Job 500 was completed and started. The following information was accessible with respect to this job:

1288_labour cost.jpg

find out the total manufacturing cost assigned to Job 500.

3. Throughout the year the company worked a total of 147,000 machine-hours on all jobs and acquired real manufacturing overhead costs of $1,325,000. What the amount is of under applied or over applied overhead for year? If this amount were closed out completely to Cost of Goods Sold, would the journal entry raise or reduce net operating income?

Applying Overhead; Cost of Goods Manufactured

The following cost data relate to manufacturing activities of Black Company throughout the just ended year:

949_overhead cost.jpg

The company uses a predetermined overhead rate to apply overhead cost to the jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours were recorded for year. All raw materials ultimately become direct materials—none are classified as indirect materials.

Required:

1. find out the amount of under applied or over applied overhead cost for year.

2. Make a schedule of cost of goods manufactured for the year.

Departmental Overhead Rates

Diewold Company has two departments, Assembly and Milling. The company employs a job-order costing system and computes a predetermined overhead rate in each department. The Milling Department bases its rate on the machine-hours, and the Assembly Department bases its rate on direct labour-hours. At the starting of the year, the company made the following estimates:

861_direct labour cost.jpg

Required:

1. find out the predetermined overhead rate to be employed in each department.

2. Suppose that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 407 that was started and completed throughout the year, showed the following:

928_machine hour.jpg

find out the total manufacturing cost assigned to Job 407.

3. Would you anticipate substantially different amounts of overhead cost to be charged to some jobs if the company employed a plant wide overhead rate based on direct labour-hours instead of using departmental rates? Elucidate.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9999

Have any Question? 


Related Questions in Accounting Basics

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "learning experience and application of knowledge" please respond to the following: • Assume you h ...

Assignmentfactsthe w company civil engineers consists of

ASSIGNMENT Facts: The W Company Civil Engineers consists of two divisions. The divisions are Water and Waste Water. The company sells engineering services to various customers. The following are the bill rates for the va ...

Analyze tootsie rolls 2015 consolidated statements of

Analyze Tootsie Roll's 2015 Consolidated Statements of Earnings and Retained Earnings. Discuss the relevance for a manufacturer of reporting a gross profit amount. Then calculate or report the 2015 Gross Profit Rate (%) ...

Accountingbulluse the internet to research an annual report

Accounting • Use the Internet to research an annual report of a retail company. • Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or creditor with the most imp ...

Maher inc reported income from continuing operations before

Maher Inc. reported income from continuing operations before taxes during2014 of $790,000. $790,000 Additional transactions occurring in 2014 but not considered in the $790,000 are as follows. 1. The corporation experien ...

If a nurse deposits 12000 today in a real estate investment

If a nurse deposits $12,000 today in a real estate investment trust (REIT) and the interest is compounded annually at 7% percent, what will be the value of this investment: a.) Five years from now? b.) Ten years from now ...

1 which of the following would definitely improve both

1. Which of the following would definitely improve both gross profit as reported in the Income Statement and gross profit margin (assuming cost price per unit stays the same)? A. Selling more units at a higher selling pr ...

Question 1the board of directors is considering updating

Question 1 The board of directors is considering updating the fleet of vehicles of the company which are used to ship goods to markets all around the United States. They will be leasing the vehicles as opposed to purchas ...

In todays technology environment hackers present a

In today's technology environment, hackers present a substantial risk to a firm's accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confid ...

Assignmentbackgroundphoenix advertising with its main

Assignment Background Phoenix Advertising, with its main headquarters in Charlotte, North Carolina, serves clients that include banks, insurance companies, and retail chains. You're the vice president of human resources ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen