Reference no: EM13524417
Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 86,000 machine-hours would be required for the period's estimated level of production. The company also estimated $163,400 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $0.75 per machine-hour.
Required:
1. Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
2. Assume that during the year the company actually works only 62,900 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts. Compute the amount of overhead cost that would be applied to work in process for the year, and make the entry in your t-accounts given below: (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)
Manufacturing Overhead
(Utilities) 19,000
(Insurance) 11,000
(Maintenance) 39,000
(Indirect materials) 9,000
(Indirect labor) 68,000
(Depreciation) 45,000
Balance
Work in Process
(Direct materials) 531,000
(Direct labor) 86,000
(Overhead)
3-a. Compute the amount of underapplied or overapplied overhead for the year, and show the balance in your manufacturing overhead T-account. (Input the amount as a positive value. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)
manufacturing overhead $
3-b. Prepare a journal entry to close out the balance in this account to cost of goods sold. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)
|
The principal assumption behind the use of biodata in select
: The principal assumption behind the use of biodata in selection processes is the axiom, "the best predictor of future behavior is past behavior
|
|
The logic of prediction indicates
: The logic of prediction indicates that a point-to-point comparison needs to be made between requirements of the job to be filled and the qualifications of the job applicants.
|
|
Problem with letters of recommendation
: Refers to the possibility that a disproportionate number of protected-class members may be rejected using this predictor.
|
|
Failure to conduct a reference check opens an organization
: The Americans with Disabilities Act states that employers may not ask disability-related questions and may not conduct medical examinations until after it makes a conditional job offer to a person.
|
|
Prepare a journal entry to close out the balance
: Prepare a journal entry to close out the balance in this account to cost of goods sold. (Round your intermediate calculations to 2 decimal places - Compute the amount of underapplied or overapplied overhead for the year, and show the balance in yo..
|
|
What behavior would budgeting scheme engender
: What behavior would budgeting scheme engender in the responsibility center managers and compare the advantages and disadvantages of the previous budget regime
|
|
Calculate the applied fixed overhead
: Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced
|
|
What would be the cost per equivalent unit
: What would be the cost per equivalent unit for conversion costs for September - Malaviya Corporation uses the FIFO method in its process-costing system. Operating data for the Casting Department
|
|
Compute the cost of goods transferred
: From this information, compute the cost of goods transferred to the Finished Goods Inventory account, the cost remaining in the Work in Process Inventory account, and the total costs to be accounted for.
|