managerial accounting chapter 2
Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively. If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job's unit product cost (per audio controller)?
124
Manufacturing overhead applied
252,720
Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively. If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job?
6,200
Predetermined overhead rate
6.70 per DLH
In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter "a" refers to the estimated
total fixed manufacturing overhead cost
The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?
$10.00 per machine hour.
What is the predetermined overhead rate for the Packing Department?
$10.51 per DLH
Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?
$4,000
What is the estimated total manufacturing overhead in the Assembly Department?
$595,200
What is the term used when a company applies less overhead to production than it actually incurs?
Underapplied
The direct materials required to manufacture each unit of product are listed on a
bill of materials
A normal cost system applies overhead to jobs
by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job
The adjustment for overapplied overhead
decreases cost of goods sold and increases net operating income.
Companies can improve job cost accuracy by using
multiple predetermined overhead rates
When all of a company's job cost sheets are viewed collectively they form what is known as a
subsidiary ledger