In: Accounting
16.
Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machining | Customizing | |
---|---|---|
Machine-hours | 24,000 | 25,000 |
Direct labor-hours | 20,000 | 7,000 |
Total fixed manufacturing overhead cost | $79,200 | $31,500 |
Variable manufacturing overhead per machine-hour | $2.00 | |
Variable manufacturing overhead per direct labor-hour | $3.50 |
During the current month the company started and finished Job T272. The following data were recorded for this job:
Job T272: | Machining | Customizing |
---|---|---|
Machine-hours | 70 | 40 |
Direct labor-hours | 60 | 20 |
The estimated total manufacturing overhead for the Machining Department is closest to:
17.
yare Corporation had the following inventory balances at the beginning and end of May:
May 1 | May 30 | |
---|---|---|
Raw materials | $27,500 | $34,000 |
Finished Goods | $77,000 | $70,000 |
Work in Process | $15,500 | $16,808 |
During May, $60,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 340 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,250 of direct materials cost. The Corporation incurred $42,600 of actual manufacturing overhead cost during the month and applied $40,800 in manufacturing overhead cost.
The actual direct labor-hours worked during May totaled:
16) Estimated total manufacturing overhead for the machining Department
Machining | |
Fixed Overhead | 79200 |
Variable overhead (24000*2) | 48000 |
Total | 127200 |
17) Actual overhead = Applied overhead/overhead rate = 40800/12 = 3400 Hour