Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 42E
Source Documents
For each of the following independent situations, give the source document that would be referred to for the necessary information.
Required:
- 1. Direct materials costing $460 are requisitioned for use on a job.
- 2. Greiner’s Garage uses a job-order costing system. Overhead is applied to jobs based on direct labor hours. Which source document gives the number of direct labor hours worked on Job 2004-276?
- 3. Pasilla Investigative Services bills clients on a monthly basis for costs to date. Job 3-48 involved an investigator following the client’s business partner for a week by automobile. Mileage is billed at number of miles times $0.75.
- 4. The foreman on the Jackson job wonders what the actual direct materials cost was for that job.
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Cullumber Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is
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The company uses the account Operating Overhead in place of Manufacturing Overhead, and the account Service Contracts in
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Prepare the entry to apply the overhead for the year. (List all debit entries before credit entries. Credit account titles are automatically
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Pristine Painting Services uses a job order cost system to collect the costs of its home painting business. Each customer’s house is treated as a separate job. Overhead is applied to each job based on the number of painting hours required for each house. Listed below are the data for the current year:
Estimated overhead $780,000
Actual overhead $772,450
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Actual painting hours 38,750
The company uses Operating Overhead in place of Manufacturing Overhead.
Instructions
(a) Compute the predetermined overhead rate.
(b) Prepare the entry to apply the overhead for the year.
(c) Determine whether the overhead was under- or overapplied and by how much.
(d) If estimated overhead increases to $799,500, discuss how this…
Chapter 4 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 4 - What are job-order costing and process costing?...Ch. 4 - Give some examples of service firms that might use...Ch. 4 - What is normal costing? How does it differ from...Ch. 4 - Why are actual overhead rates seldom used in...Ch. 4 - Explain how overhead is assigned to production...Ch. 4 - What is underapplied overhead? When Cost of Goods...Ch. 4 - What is overapplied overhead? When Cost of Goods...Ch. 4 - Suppose that you and a friend decide to set up a...Ch. 4 - Why might a company decide to use departmental...Ch. 4 - What is the role of materials requisition forms in...
Ch. 4 - Carver Company uses a plantwide overhead rate...Ch. 4 - Prob. 12DQCh. 4 - Is the cost of a job related to the price charged?...Ch. 4 - If a company decides to increase advertising...Ch. 4 - How can a departmental overhead system be...Ch. 4 - (Appendix 4B) Describe the difference between...Ch. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - (Appendix 4B) Explain the difference between the...Ch. 4 - Which of the following statements is true? a....Ch. 4 - The ending balance of which of the following...Ch. 4 - In a normal costing system, the cost of a job...Ch. 4 - The predetermined overhead rate equals a. actual...Ch. 4 - Prob. 5MCQCh. 4 - Applied overhead is a. an important part of normal...Ch. 4 - The overhead variance is overapplied if a. actual...Ch. 4 - Which of the following is typically a job-order...Ch. 4 - Which of the following is typically a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Wilson Company has a predetermined overhead rate...Ch. 4 - (Appendix 4A) When a job costing 2,000 is finished...Ch. 4 - (Appendix 4B) Those departments responsible for...Ch. 4 - Prob. 16MCQCh. 4 - (Appendix 4B) An example of a producing department...Ch. 4 - (Appendix 4B) An example of a support department...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - Predetermined Overhead Rate, Overhead Application...Ch. 4 - Overhead Variance (Over- or Underapplied), Closing...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Prepare Job-Order Cost Sheets, Predetermined...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Predetermined Overhead Rate, Overhead Application...Ch. 4 - Overhead Variance (Over- or Underapplied), Closing...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Prepare Job-Order Cost Sheets, Predetermined...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Job-Order Costing versus Process Costing a....Ch. 4 - Job-Order Costing versus Process Costing a. Auto...Ch. 4 - Calculating the Predetermined Overhead Rate,...Ch. 4 - Calculating the Predetermined Overhead Rate,...Ch. 4 - Calculating Departmental Overhead Rates and...Ch. 4 - Job-Order Costing Variables On July 1, Job 46 had...Ch. 4 - Source Documents For each of the following...Ch. 4 - Applying Overhead to Jobs, Costing Jobs Jagjit...Ch. 4 - Applying Overhead to Jobs, Costing Jobs Gorman...Ch. 4 - Balance of Work in Process and Finished Goods,...Ch. 4 - Job-Order Cost Sheets, Balance in Work in Process...Ch. 4 - Cost Flows Consider the following independent...Ch. 4 - Job Cost Flows Roseler Company uses a normal...Ch. 4 - Calculation of Work in Process and Cost of Goods...Ch. 4 - (Appendix 4A) Journal Entries Yurman Inc. uses a...Ch. 4 - (Appendix 4B) Direct Method of Support Department...Ch. 4 - (Appendix 4B) Sequential Method of Support...Ch. 4 - Overhead Application and Job-Order Costing Heurion...Ch. 4 - Prob. 54PCh. 4 - Calculating Ending Work in Process, Income...Ch. 4 - Overhead Applied to Jobs, Departmental Overhead...Ch. 4 - Overhead Rates, Unit Costs Folsom Company...Ch. 4 - Calculate Job Cost and Use It to Calculate Price...Ch. 4 - (Appendix 4A) Unit Cost, Ending Work in Process,...Ch. 4 - (Appendix 4A) Journal Entries, Job Costs The...Ch. 4 - (Appendix 4A) Predetermined Overhead Rates,...Ch. 4 - (Appendix 4A) Overhead Application, Journal...Ch. 4 - (Appendix 4A) Journal Entries, T-Accounts Lowder...Ch. 4 - (Appendix 4B) Support Department Cost Allocation...Ch. 4 - (Appendix 4B) Support Department Cost Allocation:...Ch. 4 - Overhead Assignment: Actual and Normal Activity...Ch. 4 - Tonya Martin, CMA and controller or the Parts...
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