Question
In: Accounting
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$
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
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ekkarill92 answered 1 year agoRelated Solutions
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