Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's the Saint Cloud plant for the past year are as follows: overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 100,000 $ 282,000 Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 120,000 302,000 38,000 20,000 20,000 47,000 39,000 20,800 18,700 49,000 For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for several jobs. Projected data pertaining only to job number 110 are as follows: Direct materials Direct labor cost: Department A (2,800 hours) Department B (1,500 hours) Machine-hours projected: Department A Department B Units produced $ 25,000 42,000 14,000 170 1,200 9,000 Required: jobs. Use expected total direct labor hours to compute the overhead rate. a-1. Assume the Saint Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to a-2. What is the expected cost per unit produced for job number 110? C # $ 2 3 4 95 % & 6 7 8 9 W e J t y u
Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's the Saint Cloud plant for the past year are as follows: overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 100,000 $ 282,000 Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 120,000 302,000 38,000 20,000 20,000 47,000 39,000 20,800 18,700 49,000 For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for several jobs. Projected data pertaining only to job number 110 are as follows: Direct materials Direct labor cost: Department A (2,800 hours) Department B (1,500 hours) Machine-hours projected: Department A Department B Units produced $ 25,000 42,000 14,000 170 1,200 9,000 Required: jobs. Use expected total direct labor hours to compute the overhead rate. a-1. Assume the Saint Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to a-2. What is the expected cost per unit produced for job number 110? C # $ 2 3 4 95 % & 6 7 8 9 W e J t y u
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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Question
Transcribed Image Text:Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order
costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs
pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $360,000. During the past year, actual plantwide overhead was $340,000. Each department's
the Saint Cloud plant for the past year are as follows:
overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from
Department A Department B
Budgeted department overhead
(excludes plantwide overhead) $ 100,000 $ 282,000
Actual department overhead
Expected total activity:
Direct labor hours
Machine-hours
Actual activity:
Direct labor hours
Machine-hours
120,000
302,000
38,000
20,000
20,000
47,000
39,000
20,800
18,700
49,000
For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for
several jobs. Projected data pertaining only to job number 110 are as follows:
Direct materials
Direct labor cost:
Department A (2,800 hours)
Department B (1,500 hours)
Machine-hours projected:
Department A
Department B
Units produced
$ 25,000
42,000
14,000
170
1,200
9,000
Required:
jobs. Use expected total direct labor hours to compute the overhead rate.
a-1. Assume the Saint Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to
a-2. What is the expected cost per unit produced for job number 110?
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