3- What would be the total cost recorded for Job 205? (Round \"Predetermined ove
ID: 2521986 • Letter: 3
Question
3- What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 a. decimal places, other intermediate calculations and final answers to the nearest dollar amount.) Department Molding Painting Total Direct materials Direct labor Manufacturing overhead Total cost 3-b. If the job contained 30 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.) Unit product cost per unit 4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year: Department Molding 31,000 88,600 Direct labor-hours Machine-hours Direct materials cost Direct labor cost Manufacturing overhead cost Painting 58,000 24,300 $163,200 $423,000 $108,000 $436,000 436,480 S751,00 What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).) Molding Department Painting DepartmentExplanation / Answer
Solution:
Part 1 - Predetermined Overhead Rate
Predetermined Overhead Rate
- Predetermined Overhead Rate is the rate which is used to apply manufacturing overhead to products or job orders.
- Normally, it is calculated at the beginning of the period.
- It is calculated by dividing the estimated factory overhead cost by an allocation base (or suitable basis).
- Allocation bases may be direct labor hours, direct labor costs, machine hours etc..
Predetermined Overhead Rate = Estimated Manufacturing Overhead Cost / Estimated Allocation Base
Allocation Base is machine hours for Molding department and direct labor hours for Painting department.
Total Estimated Manufacturing Overhead
Total Estimated Allocation base
Predetermined Overhead Rate
(A)
(B)
(A / B)
Molding Department
$160,200
122000
Machine Hours
$1.31
per MH
Painting Department
$448,060
89600
Direct Labor Hours
$5.00
per DLH
Part 2 --- Total Overhead Cost applied to Job 205
Usage by Job 205 (A)
Predetermined Overhead Rate (B)
Total Applied Overhead (A*B)
Molding Department
310 Machine hours
$1.31
per MH
$406
Painting Department
131 Direct Labor Hours
$5.00
per DLH
$655
$1,061
Total Overhead Cost applied to Job 205 = $1,061
Part 3(a) --- Total Cost recorded for Job 205
Department
Total
Molding
Painting
Direct materials
$932
$1,280
$2,212
Direct Labor
$680
$1,000
$1,680
Manufacturing Overhead (Refer working for part 2)
$406
$655
$1,061
Total Cost
$2,018
$2,935
$4,953
Part 3(b) –
Unit Product Cost = Total manufacturing Cost for Job 205 i.e. $4,953 / Total 30 Units
= $165.10 per unit
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
Total Estimated Manufacturing Overhead
Total Estimated Allocation base
Predetermined Overhead Rate
(A)
(B)
(A / B)
Molding Department
$160,200
122000
Machine Hours
$1.31
per MH
Painting Department
$448,060
89600
Direct Labor Hours
$5.00
per DLH
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