Q 1 Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $16.00 per hour. The following information pertains to Job A-200:
| Direct materials |
$250 |
| Direct labor |
$320 |
Required:
#1. What is the total manufacturing cost assigned to Job A-200?
Total manufacturing cost :
#2. If Job A-200 consists of 50 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)
Average cost :
Q 2 - Heritage Gardens provides complete garden design and landscaping services. The company uses a job-order costing system to track the costs of its landscaping projects. The table below provides data concerning the three landscaping projects that were in progress during May. There was no work in process at the beginning of May.
| |
Project |
| |
Williams |
Chandler |
Nguyen |
| Designer-hours |
|
360 |
|
|
240 |
|
|
280 |
|
| Direct materials |
$ |
6,400 |
|
$ |
3,400 |
|
$ |
5,200 |
|
| Direct labor |
$ |
4,000 |
|
$ |
2,600 |
|
$ |
3,100 |
|
|
|
Actual overhead costs were $44,000 for May. Overhead costs are applied to projects on the basis of designer-hours because most of the overhead is related to the costs of the garden design studio. The predetermined overhead rate is $61 per designer-hour. The Williams and Chandler projects were completed in May; the Nguyen project was not completed by the end of the month. No other jobs were in process during May.
Required:
# 1 . Compute the amount of overhead cost that would have been applied to each project during May.
Overhead cost: Williams Chandler Nguyen
# 2. Determine the cost of goods manufactured for May.
Cost of Goods manufactured :
Q 3
Logan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 37,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $591,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $732,111 and its actual total direct labor was 37,500 hours.
Required:
Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.)
#1 predetermined overhead rate: