Determine the budgeted manufacturing overhead rate

Assignment Help Accounting Basics
Reference no: EM13113826

The Wood Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine hours in Department 100 and 8,000 direct manufacturing labor hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

Department 100 Department 200
Direct materials purchased on account $110,000 $177,500
Direct materials used 32,500 13,500
Direct manufacturing labor 52,500 53,500
Indirect manufacturing labor 11,000 9,000
Indirect materials used 7,500 4,750
Lease on equipment 16,250 3,750
Utilities 1,000 1,250

Job A incurred 800 machine hours in Department 100 and 300 manufacturing labor hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

Required:

a. Determine the budgeted manufacturing overhead rate for each department.
b. Prepare the necessary journal entries to summarize the March transactions for Department 100.
c. What is the total cost of Job A? 

Reference no: EM13113826

Questions Cloud

Hypothesis testing of illinois banking company : Research by the Illinois Banking Company revealed that only 10 percent of their customers wait more than five minutes to do their banking. Management considers this reasonable and will not add more tellers unless the proportion becomes larger than..
What is a specific way a healthy respiratory system : What is a specific way a healthy respiratory system differs from a diseased one? How can individuals afflicted with a transmissible respiratory illness prevent the spread of disease and how can healthy individuals avoid contracting respiratory ill..
Explain and describe the presence of biodiversity : Explain and describe the presence of biodiversity in the living world as manifest by various differential responses to temperature cues among invertebrates and vertebrates.
Hypothesis testing of problem solving inventory : The Problem Solving Inventory (PSI) has a normal distribution with mean = 90 and standard deviation = 15. A researcher suspects that the mean for female students is higher than 90.
Determine the budgeted manufacturing overhead rate : a. Determine the budgeted manufacturing overhead rate for each department.  b. Prepare the necessary journal entries to summarize the March transactions for Department 100.  c. What is the total cost of Job A?
Find units of each type of raw material requires : At least 14 units of B and no more than 20 units of A must be used. Each unit of A weighs 5 kg and each unit of B weighs 10 kg. How many units of each type of raw material requires?
Identification of parametric and nonparametic data : A manufacturer produces a batch of memory chips (RAM) and measures the mean-time-between-failures (MTBF). The manufacturer then changes a manufacturing process and produces another batch and again measures the MTBF.
Illustrate what is the inventory value at the end of year : Illustrate what is the inventory value at the end of the year, assuming FIFO? What is the value assuming LIFO? Clearly label the calculations of the inventory amounts using Excel.
What would you expect to happen to the net weight : A bag made from dialysis membrane contains an aqueous solution of 2mM protein and 0.25mM sodium Iodide (NaI). The bag is carefully weighed and placed into an aqueous solution of 1.0 mM starch and 0.5mM sodium chloride (NaCl).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Integrity and excellence

Business combinations have become an important strategic move by corporations for various reasons. Discuss the various types of business combinations. Why may companies seek to engage in business combinations?

  American opportunity scholarship credit

Jeffery and Cassie, who are married with modified AGI of $90,000, are sending their son to his first year of college. Their total tuition and related payments during 2013 amounted to $5,500.

  Complete an accrual income statement

Set up the known information in a linear statement and find the missing cash sales by reversing the additive functions also complete an Accrual Income Statement.

  Prepare journal entries to record the following retirement

Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar.)The December 31, 2010 balance sheet of Wolfe Co. included the following items: 7.5% bonds payable due December 31, 2018 $1,200,000

  Annual increase in income realized

Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 perce..

  Relational database model

Identify the different entities and their associated attributes that would be found in your potential relational database model for your sales database, pertaining to the hotel industry.

  Journal entries of woodside company

Write journal entries for the following transactions that occurred at Woodside Company during the month of May and explain how each would be disclosed in Woodside's financial statements.

  Bank reconciliation with journal entries

The following information pertains to Family Video Company. Prepare a bank reconciliation at July 31. (Round answers to 2 decimal places, e.g. 10.50.)

  Preparing a list of pros and cons

Preparing a list of pros and cons do not mean just giving a definition of three entities. Your information presented should be structured toward their prospective business. Please make sure your responsive comprise the necessary references and rule..

  Convergence and concept framework project

Give an explanation of how the convergence and the Concept Framework Project impacts accountants. Explain at least one benefit and one drawback of the convergence of IASB and FASB.

  Fundamental accounting equation

What happens to the fundamental accounting equation when the sole proprietor of a business invests more cash in it

  Consistency between governmental accounting

It is sometimes said that in debt service funds, the accounting for interest revenue is inconsistent with that for interest expenditure. Explain. What is the rationale for this seeming inconsistency?

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