Question
In: Accounting
Script Company uses a job costing accounting system for its production costs. A predetermined overhead rate...
| Script Company uses a job costing accounting system for its production costs. A predetermined overhead rate based on direct labor-hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the current year as follows: | |||||
| Direct labor-hours | 18,000 | 24,000 | 30,000 | ||
| Variable overhead costs | 864,000 | 1,152,000 | 1,440,000 | ||
| Fixed overhead costs | 1,200,000 | 1,200,000 | 1,200,000 | ||
| Total overhead | 2,064,000 | 2,352,000 | 2,640,000 | ||
| The expected volume is 24,000 direct labor-hours for the entire year. The following information is for October, when jobs 1011 and 1015 were completed: | |||||
| Inventories, October 1 | |||||
| Raw materials and supplies | 100800 | ||||
| Work in process (Job 1011) | 219120 | ||||
| Finished goods | 546960 | ||||
| Purchases of raw materials and supplies | |||||
| Raw materials | 1509600 | ||||
| Supplies | 190320 | ||||
| Materials and supplies requisitioned for production | |||||
| Job 1011 | 674400 | ||||
| Job 1015 | 562800 | ||||
| Job 1017 | 113280 | ||||
| Supplies | 184080 | ||||
| 1534560 | |||||
| Machine-hours (MH) | |||||
| Job 1011 | 7,440 MH | ||||
| Job 1015 | 7,320 MH | ||||
| Job 1017 | 4,440 MH | ||||
| Direct labor-hours (DLH) | |||||
| Job 1011 | 8,400 DLH | ||||
| Job 1015 | 3,660 DLH | ||||
| Job 1017 | 2,220 DLH | ||||
| Labor costs | |||||
| Direct labor wages (all hours @ $48) | 685440 | ||||
| Indirect labor wages (12,000 hours) | 151200 | ||||
| Supervisory salaries | 307200 | ||||
| Building occupancy costs (heat, light, depreciation, etc.) | |||||
| Factory facilities | 88560 | ||||
| Sales and administrative offices | 34080 | ||||
| Factory equipment costs | |||||
| Power | 52320 | ||||
| Repairs and maintenance | 19680 | ||||
| Other | 23760 | ||||
| 95760 | |||||
| (Note: Regardless of your answer to requirement [a], assume that the predetermined overhead rate is $100 per direct labor-hour. Use this amount in answering requirements [b] through [e].) | |||||
| Required: | |||||
| a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year. | |||||
| b. Compute the total cost of Job 1011 when it is finished. | |||||
| c. How much of factory overhead cost was applied to Job 1017 during October? | |||||
| d. What total amount of overhead was applied to jobs during October? | |||||
| e. Compute actual factory overhead incurred during October. | |||||
| f. At the end of the year, Script Company had the following account balances: | |||||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead...
Haughton Company uses a job costing system for its production
costs and a predetermined factory overhead rate based on direct
labor costs to apply factory overhead to all jobs. During the month
of July, the firm processed three jobs: X13, X14, and X15, of which
X13 was started in June.
Account
July 1
July 31
Iventories
Direct Materials
38,300
?
Work - In - Process
44600
?
Finished Goods
0
0
COGS
?
Direct Materials Purchased in July
73,000
Materials...
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead...
Haughton Company uses a job costing system for its production
costs and a predetermined factory overhead rate based on direct
labor costs to apply factory overhead to all jobs. During the month
of July, the firm processed three jobs: X13, X14, and X15, of which
X13 was started in June.
Account
July 1
July 31
Iventories
Direct Materials
38,300
?
Work - In - Process
44600
?
Finished Goods
0
0
COGS
?
Direct Materials Purchased in July
73,000
Materials...
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead...
Haughton Company uses a job costing system for its production
costs and a predetermined factory overhead rate based on direct
labor costs to apply factory overhead to all jobs. During the month
of July, the firm processed three jobs: X13, X14, and X15, of which
X13 was started in June.
July 1
July 31
Inventories
Direct Materials
$
36,500
?
Work-in-Process
41,000
?
Finished Goods
0
0
Cost of Goods Sold
$
?
Direct materials purchased in July
55,000
Materials...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows.
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,200,000
$
1,440,000
$
1,680,000
Fixed overhead costs
612,000
612,000
612,000
Total overhead
$
1,812,000
$
2,052,000
$
2,292,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,050,000
$
1,260,000
$
1,470,000
Fixed overhead costs
684,000
684,000
684,000
Total overhead
$
1,734,000
$
1,944,000
$
2,154,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows.
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead costs
630,000
630,000
630,000
Total overhead
$
1,530,000
$
1,710,000
$
1,890,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct
labor-hours
150,000
180,000
210,000
Variable
overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead
costs
702,000
702,000
702,000
Total
overhead
$
1,602,000
$
1,782,000
$
1,962,000
The expected volume is 180,000 direct...
a Kansas Company uses a job costing accounting system for its production costs. The company uses...
a
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,050,000
$
1,260,000
$
1,470,000
Fixed overhead costs
594,000
594,000
594,000
Total overhead
$
1,644,000
$
1,854,000
$
2,064,000
The expected volume is 180,000...
1. Kansas Company uses a job costing accounting system for its production costs. The company uses...
1. Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead costs
666,000
666,000
666,000
Total overhead
$
1,566,000
$
1,746,000
$
1,926,000
The expected volume is 180,000...
The Savage Garden Company uses normal costing in its job-order cost system. The predetermined overhead rate...
The Savage Garden Company uses normal costing in its job-order
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labor cost. Job 70 was completed during 2019. This job was charged
$4,000 for direct materials, $2,000 for direct labor, and $6,000
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job was completed, but before it was sent to Finished Goods, it was
determined that 2 of these units were spoiled.
If the 2 bad units...
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