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Question 4 25 Marks Metrix Gold Ltd uses a job order costing system, with a predetermined...
Question 4 25 Marks Metrix Gold Ltd uses a job order costing system, with a predetermined overhead absorption rate based on machine hours. The corporation keeps only one set of books for cost and financial transactions. At the beginning of 2017, the firm estimated its manufacturing overheads for the year at N$65 200 and the machine hours at 9 150. The following are data uses on jobs worked on during December 2017: Details Job A Job B Job C Total N$ N$ N$ N$ W.I.P at 01 December 2017 7 000 3 500 2 500 13 000 Costs incurred in December 2017 - Material Requisitioned from store 2 200 1 000 720 3 920 - Wages according to time sheet 1 500 600 450 2 550 Production activity: machine hours 320 260 140 720 On 31 December 2017, only Job A was completed. Actual manufacturing overheads incurred during December 2017 were N$6 200. REQUIRED; 4.1 Define and compute a pre-determined overhead rate for 2017 (5) 4.2 Calculate the total cost of each job (15) 4.3 Calculate the amount of over/under applied overhead for December 2017 (3) 4.4 What will be the effect of your answer in 4.3?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Metrix Gold Ltd uses a job order costing system, with a predetermined overhead absorption rate based...
Metrix Gold Ltd uses a job order costing system, with a
predetermined overhead absorption rate based on machine hours. The
corporation keeps only one set of books for cost and financial
transactions. At the beginning of 2017, the firm estimated its
manufacturing overheads for the year at N$65 200 and the machine
hours at 9 150. The following are data uses on jobs worked on
during December 2017:
Details
Job A
Job B
Job C
Total
N$
N$
N$
N$...
Basic Job Costing Project Reed Incorporated uses a job-order costing system and a predetermined overhead rate...
Basic Job Costing Project
Reed Incorporated uses a job-order costing system and a
predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated
manufacturing overhead for the year would be $240,000 and machine
hours would be 8,000.
The following information pertains to December of the current
year:
Job 10
Job 11
Job 12
Total
Work-in-process, Dec. 1
$16,000
$26,000
$38,000
$80,000
The following transactions took place during the month of
December:
1. Purchased raw...
Problem #4 Predetermined Overhead Rate Broadway Corporation uses job order costing with a predetermined overhead rate...
Problem #4 Predetermined Overhead Rate
Broadway Corporation uses job order costing with a predetermined
overhead rate based on machine hours to apply overhead. The
following costs were provided after Job 500 & 510 were
complete.
Given Estimated Annual Data:
Machine Hours 55,000 DL rate/hour $8
Unit Overhead 345,000 Support labor (4,000 hours) 17,000
Facility Overhead 150,000 Supervisor Salaries 36,000
Total Overhead 495,000
Beginning Inventory
Raw Materials and Supplies $10,500
Work in Process (Job 500 only) 54,000
Finished Goods 112,500
Purchases...
Question (25 marks) : Provide reflections on job costing system of costing system in managerial accounting...
Question : Provide reflections on job costing system
of costing system in managerial accounting unit.
Reflections on your overall research experience from the
individual assignment (e.g. looking for
journal articles, reading and reviewing the literature etc.) What
was enjoyable, what was difficult,
and any challenges you experienced?
ABC Manufacturing Company uses a job-order costing system. The company uses predetermined overhead rates in applying...
ABC Manufacturing Company uses a job-order costing system. The
company uses predetermined overhead rates in applying manufacturing
overhead to individual jobs. The predetermined overhead rate in the
Chair Department is based on direct labour hours, the rate in the
Table Department is based on machine hours, and the rate in the
Desk Department is based on direct labour cost. At the beginning of
the most recent year, members of the management team made the
following estimates for the year:
(Estimated) ...
Question 2 Westel Ltd uses a job costing system. At the beginning of...
Question 2
Westel Ltd uses a job costing system. At the beginning of the month
of June, two orders were process as follows:
Order 88 Order 105
Direct Materials $1,000 $900
Direct Labour $1,200 $200
Overhead allocation $1,800 $300
There was no inventory in finished goods on June 01. During the
month of June orders numbered 106 through 120, inclusive were put
into process.
Direct materials requirements amounted to...
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...
Lupo Corporation uses a job-order costing system with a single
plantwide predetermined overhead rate based on machine-hours. The
company based its predetermined overhead rate for the current year
on the following data:
Total machine-hours
32,700
Total fixed manufacturing overhead cost
$294,300
Variable manufacturing overhead per
machine-hour
$ 2.00
Recently, Job T687 was completed with the following
characteristics:
Number of units in the job
10
Total machine-hours
20
Direct materials
$ 545
Direct labor cost
$1,090
If the company marks up...
Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...
Gerstein Corporation uses a job-order costing system with a
single plantwide predetermined overhead rate based on direct
labor-hours. The company based its predetermined overhead rate for
the current year on total fixed manufacturing overhead cost of
$90,000, variable manufacturing overhead of $3.70 per direct
labor-hour, and 50,000 direct labor-hours. The company recently
completed Job M800 which required 150 direct labor-hours.
The estimated total manufacturing overhead is closest to:
Multiple Choice
$90,000
$275,000
$185,000
$90,004
Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
Reed Incorporated uses a job-order costing system and a
predetermined overhead rate based on machine hours.At the beginning of the year, the company estimated
manufacturing overhead for the year would be $240,000 and estimated
machine hours would be 10,000.The following information pertains to December of the current
year:Job 10Job 11Job 12TotalWork-in-process, Dec. 1$16,000$26,000$38,000$80,000December production activity:Materials requisitioned$ 4,000$ 4,800$ 7,200$16,000Direct labor cost$ 2,400$ 3,600$ 4,000$10,000Machine hours400 hrs.700 hrs.900 hrs.2000Labor hours120 hrs.180 hrs.200 hrs.500Actual manufacturing overhead cost incurred in
December was $61,000.Assuming...
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...
Lupo Corporation uses
a job-order costing system with a single plantwide predetermined
overhead rate based on machine-hours. The company based its
predetermined overhead rate for the current year on the following
data:
Total
machine-hours
32,300
Total fixed
manufacturing overhead cost
$
581,400
Variable
manufacturing overhead per machine-hour
$
2.00
Recently, Job T687 was
completed with the following characteristics:
Number
of units in the job
10
Total
machine-hours
40
Direct
materials
$
630
Direct labor
cost
$
1,260
If the company...
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