Clear View is a manufacturer of custom windows and uses a job-costing system at
ID: 2607198 • Letter: C
Question
Clear View is a manufacturer of custom windows and uses a job-costing system at its Orlando, FL plant. The plant has a machining department and a finishing department. Clear View uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2014 budget for the plant is as follows:
Prepare an overview diagram of Clear View's job-costing system.
What is the budgeted manufacturing overhead rate in the machining department? In the finishing department?
During the month of January, the job-cost record for Job 431 shows the following:
Compute the total manufacturing overhead cost allocated to Job 431.
Assuming that Job 431 consisted of 300 units of product, what is the cost per unit?
Amounts at the end of 2014 are as follows:
Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
Why might Clear View use two different manufacturing overhead cost pools in its job-costing system?
Cost Accounting Project Part I Template Project Part I 1 An overview of the job-costing system is: 2 Budgeted manufacturing overhead divided by allocation base: a. Machining Department: b. Finishing Department: Show work 3 Machining Department overhead Finishing Department overhead Total manufacturing overhead allocated $0 4 Total costs of Job 431: Direct costs: Show work Direct materials Machining Department Finishing Department Direct manufacturing labor Machining Department Finishing Department 0 Indirect costs: Machining Department overhead Finishing Department overhead 0 Total costs $0 The per-unit product cost of Job 431 is 5 Machining Finishing Manufacturing overhead incurred (actual) Manufacturing overhead allocated Machining Finishing Underallocated manufacturing overhead Overallocated manufacturing overhead Total overallocated overhead = 6Clear View is a manufacturer of custom windows and uses a job-costing system at its Orlando, FL plant. The plant has a machining department and a finishing department. Clear View uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2014 budget for the plant is as follows:
Machining Department Finishing Department Manufacturing overhead costs $9,065,000 $8,181,000 Direct manufacturing labor costs $ 970,000 $4,050,000 Direct manufacturing labor-hours 36,000 155,000 Machine-hours 185,000 37,000Prepare an overview diagram of Clear View's job-costing system.
What is the budgeted manufacturing overhead rate in the machining department? In the finishing department?
During the month of January, the job-cost record for Job 431 shows the following:
Machining Department Finishing Department Direct materials used $13,000 $ 5,000 Direct manufacturing labor costs $ 900 $ 1,250 Direct manufacturing labor-hours 20 70 Machine-hours 140 20Compute the total manufacturing overhead cost allocated to Job 431.
Assuming that Job 431 consisted of 300 units of product, what is the cost per unit?
Amounts at the end of 2014 are as follows:
Machining Department Finishing Department Manufacturing overhead incurred $10,000,000 $7,982,000 Direct manufacturing labor costs $ 1,030,000 $4,100,000 Machine-hours 200,000 34,000Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
Why might Clear View use two different manufacturing overhead cost pools in its job-costing system?
Explanation / Answer
Solution:
Hence overhead rate for machining department is $49 per machine hour and for finishing department is $2.02 per direct labor cost.
Computation of Manufacturing overhead rate Particulars Machining Department Finishing Department Manufacturing overhead cost $9,065,000.00 $8,181,000.00 Machine Hours 185000 37000 Direct Manufacturing labor cost $970,000.00 $4,050,000.00 Allcation base Machine hours Direct manufacturing labor cost Overhead rate: 9065000/185000 $49.00 8181000/4050000 $2.02Related Questions
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