Calculate the total direct labor cost in department

Assignment Help Cost Accounting
Reference no: EM13921013

Part 2
Peter Coffin and Paul Bearer own The Grave Undertaking, Inc. and their firm uses a predetermined overhead rate to apply overhead to the production of custom-built coffins. They use a job order cost system. Overhead is applied on the basis of labor hours in Dept. A and on the basis of machine hours in Dept. B. At the start of the year the company made the following budgets for the year's activity:

                                 Dept. A               Dept. B
Direct Material Cost        $120,000             $150,000
Total Product Cost            280,000             395,000
Direct labor Cost                   ????             ????
Overhead                             ????            $ 100,000
Machine hours                      3,000            5,000
Labor hours                          2,500          12,000
The Average Direct labor wage rate per hour in Dept. A is $15.

REQUIRED/Solution

1 (a). Calculate the total direct labor cost in Department A.

(b). Calculate the direct labor wage rate in Department B

2. Compute the rate to be used in each department for applying overhead in both departments

3. Assume that during April, the job cost sheet for Job 206 showed the following:

                                Dept. A Dept. B
Materials requisitioned* $ 4000    $ 3000
Direct labor hours             300    90
Machine hours                    80    170
Overhead Applied                ?         ?
* withdrawn from the inventory.

Required:

Compute the total overhead charged to Job 206.
Compute the cost per unit for the Job 206-assuming the job order was to produce 20 units

Reference no: EM13921013

Questions Cloud

You have just been hired as an information security engineer : You have just been hired as an Information Security Engineer for a videogame development company. The organization network structure is identified in the below network diagram and specifically contains:
Tell us about an entrepreneur who has inspired you : What are the qualities that has made him successful and famous, Why does he inspire you and how can you implement his inspiration to use in your life.
How much pollution reduction : Appalachian Coal Mining believes that it can increase labor productivity and, there­fore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution, How much pollution reduction should App..
What are costs of debt and preferred stock : What are costs of debt, preferred stock, and equity components of capital? What is Cowboy's WACC
Calculate the total direct labor cost in department : Calculate the total direct labor cost in Department A. Calculate the direct labor wage rate in Department B, 2. Compute the rate to be used in each department for applying overhead in both departments
What is the amount and character of income or loss : What is the amount and character of income or loss to A on this transaction? (b) Would your answer change if X, rather than A's three sons, owned all of the stock of Y?
Risk assessment is a critical starting point : Risk assessment is a critical starting point for audits in general. How can it be used as a tool for an entity's antifraud program, in which the entity is trying to minimize its fraud risk?
How many shafts can the process turn out before : Specifications are 15.0 to 15.2 centimeters. A three sigma cushion is set at each end to minimize the risk of output outside of the specifications. How many shafts can the process turn out before tool replacement becomes necessary?
Probability of fraud theft : What are three internal factors that enhance the probability of fraud, theft, and embezzlement?

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Find the break points associated with each source

Find the break points associated with each source of capital and use them to specify each of the ranges of total new financing over which the firm's WACC remains constant.

  Prepare the budgets for the quarter ending

Prepare the four budgets for the quarter ending 30 June 2013 only. (Show the total of the three months in these budgets only. Do not show the monthly figures. Round your numbers for these budgets up to zero decimal places):

  Prepare the direct materials budget for january

Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January.

  Calculate amount of revenue that heartstrings will recognize

Heartstrings sold 25 of these packages for a total of $11,280 in cash. For the month of October, calculate the amount of revenue that Heartstrings will recognize.

  Retained earnings is the total amount of cash

Identify each statement as true or false. If false, indicate how to correct the statement - Jeff Lynne has studied the information you gave him in that exercise and has come to you with more statements about corporations.

  Calculate the amount of income from the partnership

Quince Interest is a partnership with a tax year that ends on September 30, 2013. During that year, Potter a partner received $3,000 per month as a guaranteed payment, and his share of partnership income after guaranteed payments was $23,000.

  Cosgrove company manufactures two products product k-7 and

cosgrove company manufactures two products product k-7 and product l-15. product l-15 is of fairly recent origin having

  Questionin the 1st nbspaudit of a client because of the

questionin the 1st nbspaudit of a client because of the clients record retention policies an auditor was not able to

  Calculate net present value of each of the options

Calculate net present value of each of the options and determine which option Crossroad should select using the NPV criterion and what non-financial factors should Crossroad consider before making its choice?

  Kindschuh corporation is working on its direct labor budget

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.

  Problem on accounting timing & mechanics

One of the perks of being the division manager of a large company is the $25,000 bonus that I receive if the division meets its target of $1.5 million by the end of the year.

  Find the unknowns in big chucks abbreviated cash budget

Find the unknowns in Big Chuck's abbreviated cash budget and determine the outstanding loan balance as of September 30, after any repayments have been made.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd