Question
In: Accounting
The Meyers CPA firm has the following overhead budget for theyear:OverheadIndirect materials $350000.00...
The Meyers CPA firm has the following overhead budget for the year:
Overhead
Indirect materials $350000.00
Indirect labor $1675000.00
Depreciation Bldg 303000.00
Depreciation Furniture 35000.00
Utilities 310000.00
Insurance 39000.00
Property Tax 53000.00
Other Expenses 145000.00
Total 2910000.00
The fir estimates direct labor cost to be $1818750.00. The firm uses direct labor cost driver to apply overhead to clients. During Jan the firms worked for many clients; data for two of them follow:
Gargus account
Direct Labor $3000.00
Feller Account
Direct Labor$9000
Compute the firm's predetermined overhead rate
Compute the amount of overhead to be charged to Gargus and Feller accountsusing the predetermined overhead rate
Compute total job cost for Gargus account and Feller account
Solutions
Expert Solution
FROM THE ABOVE GIVEN INFORMATION:
Total Manufacturing Overhead Cost (including indirect materials, indirect labor, depreciation, utilities, insurance, property taxes, and other expenses) = $2,910,000
The firm estimates total direct labor cost for the year to be = $1,818,750
The firm uses direct labor cost as the cost driver to apply overhead to clients.
Answer 1
Pre Determined Overhead Rate= Total Estimated Overhead Costs for the period / Total Amount of allocation base
= $2,910,000 / $1,818,750
=$1.6 per labor
Answer2
Amount of Overhead to be charged to Gargus and Feller
Gargus Direct Labor=$3,000
Feller Direct Labor=$9,000
Gargus Overhead= $3000*$1.6
=$4,800
Feller Overhead =$ 9000*$1.6
=$14,400
Answer 3
Total Gargus Job Cost= Direct Labor + Overhead
=$3,000 + $5,120
=$8,120.
Total Feller Job Cost= Direct Labor + Overhead
=$9,000 + $14,400
=$23,400.
ekkarill92 answered 2 years agoRelated Solutions
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Antuan Company set the following standard costs for one unit of its
product.
Direct materials (4.0 Ibs. @ $5.00 per Ib.)
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Required information
Problem 21-3A Flexible budget preparation; computation of
materials, labor, and overhead variances; and overhead variance
report LO P1, P2, P3, P4
Skip to question
[The following information applies to the questions
displayed below.]
Antuan Company set the following standard costs for one unit of its
product.
Direct materials (4.0 Ibs. @ $5.00 per Ib.)
$
20.00
Direct labor (1.6 hrs. @ $11.00 per hr.)
17.60
Overhead (1.6 hrs. @ $18.50 per hr.)
29.60
Total standard cost
$
67.20...
Required information Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead...
Required information
Problem 21-3A Flexible budget preparation; computation of
materials, labor, and overhead variances; and overhead variance
report LO P1, P2, P3, P4
Skip to question
[The following information applies to the questions
displayed below.]
Antuan Company set the following standard costs for one unit of its
product.
Direct materials (4.0 Ibs. @ $5.00 per Ib.)
$
20.00
Direct labor (1.6 hrs. @ $11.00 per hr.)
17.60
Overhead (1.6 hrs. @ $18.50 per hr.)
29.60
Total standard cost
$
67.20...
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Problem 21-3A Flexible budget preparation; computation of
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Antuan Company set the following standard costs for one unit of its
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Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report...
Problem 21-3A Flexible budget preparation; computation of
materials, labor, and overhead variances; and overhead variance
report LO P1, P2, P3, C2
[The following information applies to the questions
displayed below.]
Antuan Company set the following standard costs for one unit of its
product.
Direct materials (6 Ibs. @ $5 per Ib.)
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Overhead (2 hrs. @ $18.50 per hr.)
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Direct labor (1.8 hrs. @ $14.00 per hr.)
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Antuan Company set the following standard costs for one unit of its
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Direct materials (4.0 Ibs. @ $5.00 per Ib.)
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Direct labor (1.8 hrs. @ $13.00 per hr.)
23.40
Overhead (1.8 hrs. @ $18.50 per hr.)
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Total standard cost
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Problem 21-3A Flexible budget preparation; computation of
materials, labor, and overhead variances; and overhead variance
report LO P1, P2, P3, P4
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[The following information applies to the questions
displayed below.]
Antuan Company set the following standard costs for one unit of its
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$
20.00
Direct labor (1.8 hrs. @ $13.00 per hr.)
23.40
Overhead (1.8 hrs. @ $18.50 per hr.)
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report LO P1, P2, P3, P4
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[The following information applies to the questions
displayed below.]
Antuan Company set the following standard costs for one unit of its
product.
Direct materials (4.0 Ibs. @ $5.00 per Ib.)
$
20.00
Direct labor (1.8 hrs. @ $13.00 per hr.)
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