<<Please help me to using EXCEL sheet and show/explain detail solution>> . Thank

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<<Please help me to using EXCEL sheet and show/explain detail solution>>. Thank you very much for your help.

It helps me a lot to learn this course. This way I can study myself. I really appreciate for your help.

I need to answer bottom of excel sheet on by one. Thank you so much.

(If you want to make pics big or clear -> "copy of the picture and paste to Word or Excel, to make a big picture")

** Can I have a answer that # 2 (Yellow highlighter) and # 4 , please? **

P4-14 Determining overhead rates, using direct labor cost, direct labor hour, and machine hour methods; determining job cost computing underapplied and overapplied overhead College Station Manufacturing Inc. is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, $60,000; estimated materials costs, $50,000; estimated direct labor costs, $60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. LO6 The actual factory overhead incurred for November was $80,000, and the production statistics on November 30 are as follows: Direct Labor Machine Date Jobs Direct Costs Labor Costs Hours S 6,000 12,000 13,500 15,600 29,000 Materials Hours Completed 3,000 3,200 4,000 3,400 6,500 1.500 In process Job 101. 102... $ 5,000 7,000 8,000 Nov, 10 Nov. 14 Nov. 20 In process Nov. 26 1,000 2,500 104 105. 10,00 4,500 Total.... $50,000 78,500 13,000 Required: 1. Compute the predetermined rate, based on the following 21,600 a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total 3. Determine the under- or overapplied factory overhead, in 4. Which method would you recommend? Why? cost of each job at the end of the month. total, at the end of the month under each of the methods.

Explanation / Answer

We are glad that you are satisfied with the answers.

In the above question it asks for the distribution of overheads incurred to various jobs. In the first part it mentions that we need to calculate overhead absorption rate on the following three basis - Direct Labour Cost, Direct Labour Hours and Machine Hours.

In the Second Part it asks us to calculate total cost of each job by adding overhead amount distributed to each job. Overhead amount will be distributed as per rates calculated in first part. It also specifies to calculate Total cost of each job using all the three basis mentioned in first part i.e. we will calculate three total cost of each job -

One by allocating overheads on Direct Labour Cost basis

Second by allocating overheads on Direct Labour Hours basis

Third by allocating ovehreads on Machine Hour basis.

In above three tables we calculated overheads applied to each job by all the three basis.

In third part we need to calculate whether overhead applied are overapplied (i.e applied to jobs is more than actual overhead incurred) or under applied(i.e. actual overhead incurred are more than overhead applied to jobs)

In all the three cases overhead are under applied as actual overhead incurred is $80,000.

In part four the table in not printed but as it mentions which method you recommend and why -

As in all the three cases overheads are under applied but of all the cases difference between overhead applied and incurred is minimum in Direct Labour Cost method.Hence Overhead should be applied as per Direct Labour Cost method i.s 100 % of Direct Labous Cost.

Hope this answer is satisfactory for any more details required in part 4 please comment.

Total Cost of Job using Direct Labour Cost Method Job 101 Job 102 Job 103 Job 104 Job 105 Job 106 Total of all jobs Material 5000 7000 8000 9000 10000 11000 50000 Direct Labour Cost 6000 12000 13500 15600 29000 2400 78500 Total Prime Cost 11000 19000 21500 24600 39000 13400 128500 Applied overhead - Direct Labour Cost 6000 12000 13500 15600 29000 2400 78500 Total Cost using Direct Labour Cost 17000 31000 35000 40200 68000 15800 207000 Working of Overhead applied (100 % of labour cost is to be applied as overhead) 100% of 6000 100% of 12000 100% of 13500 100% of 15600 100% of 29000 100% of 2400

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