In: Accounting
1. Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) manufacturing overhead applied to production during the period of $432,000, (3) estimated fixed manufacturing overhead of $331,800, and (4) estimated variable manufacturing overhead cost per machine-hour of $2.00. The estimated amount of the allocation base (machine-hours) is closest to:
2.Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) estimated machine-hours to be worked during the coming period of 55,000 hours, (3) manufacturing overhead applied to production during the period of $432,000, and (4) estimated variable manufacturing overhead per machine-hour of $2.35. The estimated fixed manufacturing overhead cost is closest to:
3. Assume a company started and completed numerous jobs during July—one of which was Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Z:
Machining | Assembly | ||||||
Estimated total fixed manufacturing overhead | $ | 48,000 | $ | 30,000 | |||
Estimated variable manufacturing overhead per machine-hour | $ | 1.50 | |||||
Estimated variable manufacturing overhead per direct labor-hour | $ | 2.00 | |||||
Estimated total machine-hours to be used | 12,000 | ||||||
Estimated total direct labor hours to be worked | 10,000 | ||||||
Job Z | Machining | Assembly | ||||||
Direct materials | $ | 750 | $ | 800 | ||||
Direct labor | $ | 300 | $ | 1,000 | ||||
Machine-hours | 40 | |||||||
Direct labor-hours | 60 | |||||||
What is the total job cost for Job Z?
4. Assume that a company pays a 5% sales commission. Also, assume (1) a company’s plantwide predetermined overhead rate is $16.25 per direct labor-hour, and (2) its job cost sheet for Job X shows that this job used 18 direct labor-hours and incurred direct materials and direct labor charges of $500 and $360, respectively. What is the total cost of Job X?