chapter 2 accounting

Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 listed $4,000 in direct materials cost and $5,000 in direct labor cost to manufacture 7,500 units. The unit cost of Job #420 is

$2.00 Total cost of Job #420 = Direct materials + direct labor + overhead (predetermined overhead rate × direct labor cost) = $4,000 + $5,000 + 1.20 × $5,000 = $15,000 Unit product cost = $15,000 ÷ 7,500 units = $2.00 per unit.

Mickley Company's plantwide predetermined overhead rate is $19.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500: Direct materials$200Direct labor$240 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 80 units, what is the unit product cost for this job?

1. Manufacturing overhead = 380 (240/12=20*19) +200+240=820 2. 820/80=10.25

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $14.00 per direct labor-hour and $10.00 per direct labor-hour, respectively. The company's direct labor wage rate is $17.00 per hour. The following information pertains to Job N-60: Assembly Testing & PackagingDirect materials$355 $31 Direct labor$102 $34 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.) 2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.) https://brainly.com/question/13288630

102/17=6 34/17=2 355+31=386 102+34=136 6*14=84 2*10=20 1. add all up= 626 2. divide by 10= 62.6

Murphy Manufacturing estimated total manufacturing overhead for 2017 to be $100,000 and uses direct labor-hours as the allocation base. They estimated that 5,000 hours would be used. Actual overhead for 2017 was $120,000 and actual direct labor-hours were 7,500. How much overhead was applied to a job completed during 2017 that used 200 direct labor-hours?

4000 The predetermined overhead rate = $100,000 ÷ 5,000 direct labor-hours = $20 per direct labor-hour. The overhead applied to the job = $20 per direct labor-hours ×200 direct labor-hours = $4,000.

cost diver

A factor that causes overhead costs

only true in a multiple predetermined overhead rate system?

Each production department may have its own predetermined overhead rate.

Manufacturing Overhead

Factory labor charges that cannot be easily traced to a job consists of many different types of indirect costs

job sheet cost

The document that records the materials, labor, and manufacturing overhead costs charged to a job

predetermined overhead rate X amount of allocation base incurred by job

The formula for applying overhead to a specific job

Overhead Allocation

The process used to assign overhead costs to products is called

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find

overhead applied to the job

predetermined overhead rate

reasons to use: 1-eliminate the effect of seasonal factors 2-a more accurate accounting of costs 3-enhanced information for decision making

total cost of a job=

applied manufacturing overhead direct materials cost direct labor cost

Overhead application is the process of

assigning manufacturing overhead cost to jobs

To calculate the unit product cost using the job cost sheet

divide the total job cost by the number of units produced

cost-plus pricing

markup percentage added to cost of job

allocation base

measure of activity used to assign overhead costs to products/services

Compared to a plantwide overhead rate system, a multiple predetermined overhead rate system is

more complex, but more accurate

Allocation bases that do not drive overhead costs

will not accurately measure the cost of overhead used

Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $280,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $265,000 and 10,400 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.

manufacturing overhead applied = predetermined overhead rate x actual activity 243360

Markup= Profit/cost* 100%

mark up percentage