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

Company annual report study -choose any company and make a

COMPANY ANNUAL REPORT STUDY - Choose any company and make a report: Introduction (about 100 words) Conceptual framework (300 words) Ethics (not more than 150 words) Corporate governance (not more than 150 words) Legitima ...

Question 1based upon the narrative describing the case what

Question 1: Based upon the narrative describing the case, what cultural element (per Ferraro) was most likely a major contributing factor to the accident? Question 2: If you were brought to the investigation, what recomm ...

Colllege loans and repayment projecti think that the

COLLLEGE LOANS AND REPAYMENT PROJECT I think that the College Debt issue will be the defining issue impacting young people who go to college today just like the Great Depression/WII was the defining issue for my parent's ...

Principles of accountingthe accounting cyclequestion

Principles of Accounting The Accounting Cycle Question A • Explain why temporary accounts are closed each period. Question B • Identify the 10 steps in the accounting cycle.

The budget director for bird house unlimited inc has

The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for November 20XX. Estimated sales for November Bird House 28,600 units at $33 per u ...

Problemmaquoketa services was formed on may 1 2017the

Problem Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month. Transactions on May 1: 1. Jay BradFord invested $40,000 cash in the company, as its sole owner . 2. Hire ...

Assignmentpart 11 which of the following would cause a

Assignment Part 1 1. Which of the following would cause a contra-asset to be credited and an expense debited? a. Recording an accrued expense b. Recording the consumption of supplies c. Recording the building depreciatio ...

1 identify an industry to focus on it is suggested that you

1) Identify an industry to focus on (It is suggested that you use an industry that is expanding rather than consolidating, but the choice is yours to make). Explain why you chose this industry and its environment. 2) Ide ...

1 the accounting equation is assets liabilities owners

1. The accounting equation is assets = liabilities + owner's equity. Please explain the relationship between economic resources and claims to economic resources. Why must this equation always balance? What transactions i ...

Consumers choices are prey to subtle discrepancies that

Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making. As the readings fo ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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