Evaluate what is the under absorbed overhead

Assignment Help Cost Accounting
Reference no: EM1376281

1. The Talbott Company has got an order (#324) for 100 widgets. On 20th January the shop supervisor requisitioned 100 units of part 503 at a cost of $5 per unit and 500 units part 456 at a cost of $3 per unit to begin work on the 100 widgets. On the similar day 20 hours of direct labor at $20 per hour are used to work on the widgets. On 21st January, 200 units of part 543 at $6 per unit are requisitioned and 10 hours of direct labor at $15 per hour are performed on the 100 units of widgets to do the job. Overhead is allocated to the job based on $5 per direct labor hour.

Make a job order cost sheet for the 100 widgets

2. The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the starting of the year the company expects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000, and the expected direct labor hours are 80,000. The actual fixed overhead costs are $700,000, and actual variable overhead costs are $750,000. The actual machine hours during year are 5,500, and the actual direct labor hours are 90,000.

a. Find how much overhead is allocated?

b. Evaluate what is the over/under absorbed overhead?

Reference no: EM1376281

Questions Cloud

Example on precision tree - basic tree terminology : The Westhouser Paper Company in the state of Washington currently has an option to purchase a piece of land with good timber forest on it. Example on precision tree - Basic Tree Terminology
Gross domestic product effect on computer hardware industry : Make an in depth analysis on how your prediction of indicators Gross Domestic Product, Producer Price Index and Retail Sales or PC Retail Sales will effect the Dynamic Random Access Memory industry.
Consumer price index calculation : The agency of Labor Statistics follows 5-steps to calculate Consumer Price Index. Determine three strengths and three weaknesses of the Consumer Price Index calculation.
Compute the project expected npv and standard deviation : Huang Industries is planning a proposed project whose estimated NPV is twelve million dollar. This estimate suppose that economic situations will be average.
Evaluate what is the under absorbed overhead : Find how much overhead is allocated and evaluate what is the over/under absorbed overhead - Make a job order cost sheet for the 100 widgets
Housing industry overview paper assignment : Using the two economic indicators selected for your Housing Industry Overview Paper assignment, Compare and contrast at least two different eighteen month forecasts for each of the 2-economic indicators.
Find how much overhead is allocated : Find how much overhead is allocated and evaluate what is the over/under absorbed overhead?
Evaluate tax savings from the special tax treatment : Daniel's marginal tax rate is 35% and he has $120,000 of other capital gains (taxed at 15 %), evaluate the tax savings from the special tax treatment?
Make a job order cost sheet for the 100 widgets : The Talbott Company has received an order (#324) for 100 widgets - Make a job order cost sheet for the 100 widgets

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Evaluate the value-added ratio

Evaluate the value-added, the value-added ratio, and total lead time

  Evaluate the amount of subscription revenue

Use the horizontal model to record the effects of the subsequent items Subscription fees received in advance in September 2010.

  Ethical behavior when he turned down the investment

Evaluate the effect that the new product line would have on the profitability of firm as a whole. Should division have produced crimping and waving iron?

  Describe what he must do to obtain the same cash flow

Describe what he must do to obtain the same cash flow as he could have gotten from investing in 1000 shares in the proposed levered firm

  Explain the auditors responsibility for detecting this fraud

Explain the auditors responsibility for detecting this fraud

  Evaluate the price of the bonds at january

Determine the journal entry to record their issuance by The Bradford Company on January 1, 2013.

  Which cost is relevant present cost or replacement cost

Which cost is relevant present cost or replacement cost

  Describe why the method used to allocate costs

You should assume that direct fixed costs will be avoided if a model is dropped but common fixed costs will not be model is dropped. Describe why the method used to allocate costs at Lennon results in "unreasonably high" charges to the Model 599 pu..

  Evaluate how many units of product cedar

Evaluate how many units of product Cedar

  Evaluate the cost of direct materials

Evaluate the subsequent amounts for the month of May cost of direct materials used and cost of direct labor used.

  Find how much clay should be purchased in september

The company needs to maintain monthly ending inventories of clay equal to 20% of the subsequent month's production required. On August 31, 18,000 pounds of clay were on hand.

  Prepare entry for this transaction

Interest is payable on November 1 st and May st. (Assume a 360 day year 30 day months) - Prepare the 09/21/08 entry for this transaction.

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