Determine the budgeted manufacturing overhead rate
Course:- Accounting Basics
Reference No.:- EM13113826

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

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.


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? 

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Each of the four scatterplots a-d that follow shows a cluster of points and one "stray" point. For each, answer questions 1-4: 1) In what way is the point unusual? Does it
John and Kathy brown have been audited and the IRS agent disallowed the business loss they claimed in 2012. The IRS agent asserted that the activity is a hobby, not a busine
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears
Your father runs a small auto body shop. He has decided to computerize his records and has asked you to explain the basics of accounting to him so that he can enter the data
In the current year, the partnership reports $400,000 in ordinary income. What are Yees distributive share and her guaranteed payment?
Annie gives her son stock with a basis in her hands of $52,000 and a fair market value of $48,000. No gift tax is paid. Son subsequently sells the stock for $49,000. What is
You are an accounting student taking a class in accounting. Your professor has given you an assignment for the weekend. He wants you to look at each ethical scenario listed
Consulting Group - Team D has performed a series of analysis on behalf of the top management of Ballard Integrated Managed Services, Inc (BIMS). These tasks were the result