Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated Its total manufacturing overhead cost at $237,500 and total machine hours at 62,500. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 $ 11,600 $ 18,000 1,700 hours Job 182 $ 8,100 $ 5,700 2,700 hours Job 101 $ 5,500 $ 5,100 1,100 hours Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. Total $ 25,200 $ 28,800 5,500 hours Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. 2. Compute the total manufacturing overhead applied to the Work In Process Inventory account during the first month of operations. Note: Round your Intermediate calculations to 2 decimal places. 3. Compute the balance in the Work In Process Inventory account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places.
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated Its total manufacturing overhead cost at $237,500 and total machine hours at 62,500. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 $ 11,600 $ 18,000 1,700 hours Job 182 $ 8,100 $ 5,700 2,700 hours Job 101 $ 5,500 $ 5,100 1,100 hours Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. Total $ 25,200 $ 28,800 5,500 hours Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. 2. Compute the total manufacturing overhead applied to the Work In Process Inventory account during the first month of operations. Note: Round your Intermediate calculations to 2 decimal places. 3. Compute the balance in the Work In Process Inventory account at the end of the first month. Note: Round your Intermediate calculations to 2 decimal places.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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