I ONLY NEED WELL-ORGANIZED AND ACCURATE ANSWERS! THANKS. High Desert Potterywork
ID: 2610927 • Letter: I
Question
I ONLY NEED WELL-ORGANIZED AND ACCURATE ANSWERS! THANKS.
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning of the year, the company provided the following estimates Department Molding Painting 50,800 35,000 $163,400 $447,040 33,500 86,000 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 3.20 -$ 5.20 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job Department MoldingPainting Direct labor-hours Machine-hours Direct materials Direct labor cost 132 69 $ 948 $1,180 $ 750 $ 950 370 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 22 units, what would be the unit product cost?Explanation / Answer
Answer
1.
Total Manufacturing Overhead = Fixed Manufacturing Overhead + Variable manufacturing overhead
Molding Department
Total Manufacturing Overhead = 163,400 + ($3.2 per machine hour * 86,000 Machine hours)
Total Manufacturing Overhead = $438,600
Predetermined Overhead Rate = Total manufacturing overhead / total Machine hours
= 438,600 / 86,000 Machine Hours
Predetermined Overhead Rate = $5.1 per machine hour
Painting Department
Total Manufacturing Overhead = 447,040 + ($5.2 per labor hour * 50,800 labor hours)
Total Manufacturing Overhead = $711,200
Predetermined Overhead Rate = Total manufacturing overhead / total Labor hours
= 711,200 / 50,800 Labor Hours
Predetermined Overhead Rate = $14 per Labor hour
2
Total overhead cost applied to Job 205
= Molding Mfg. overhead Cost + Painting Mfg. overhead cost
= (Predetermined Molding Overhead Rate * Machine hours) + (Predetermined Painting Overhead Rate * Direct Labor hours)
= ($5.1 * 370 Machine hours) + ($14 * 132 hours)
Total overhead cost applied to Job 205 = $3,735
3-A
Molding
Painting
Total
Direct Material
948
1180
2128
Direct Labor
750
950
1700
Manufacturing Cost
1887
($5.1 * 370)
1848
($14 * 132)
3735
Total
7563
Total Manufacturing cost of Job 205 = $7563
3-B
Unit product cost = Total Manufacturing cost of Job 205 / 22 Units
= $7563 / 22 Units
Unit product cost = $343.77
Molding
Painting
Total
Direct Material
948
1180
2128
Direct Labor
750
950
1700
Manufacturing Cost
1887
($5.1 * 370)
1848
($14 * 132)
3735
Total
7563
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.