Please help me with Activity 1. 4G4G21:49477 - Activities -..Activity 1Stoll Manufacturing, Inc. uses a job order costing system. The company uses predeterminedoverhead rates in applying manufacturing overhead to individual jobs. The predeterminedoverhead rate in Department X is based on direct labor hours, the rate in Department Y is basedon machine hours, and the rate in Department Z is based on direct labor cost. At the beginning ofthe most recent year, members of Stoll's management team made the following estimates for theyear.80,00050,000$400,000$200,000$560,000DepartmentY26,00085,000$150,000$.26.000$340,00060,00023,000$800,000$ 42,000$240,000Direct labor hoursMachine hoursDirect labor costDirect materialsManufacturing overheada. Compute the predetermined overhead rates for Departments X, Y, and Z.b. Stoll Manufacturing's records show the following information for Job #6854, which wasentered into production on January 17 and completed on March 7.DepartmentYDirect labor hours42054375125$1,390$2,065Machine hoursDirect labor cost200120$2,400$ 842$1,080$1,260Direct materialsCompute the total manufacturing overhead applied to Job #6854.c. On December 31, Stoll showed the following actual costs and operating data for all jobsworked on during the year:76,00054,000$395,200$215,900$540,000DepartmentY28,92087,200$138,000$.24.380$345,000Z.63,00021,000$815,000$ 39,080$254,000Direct labor hoursMachine hoursDirect labor costDirect materialsManufacturing overheadCompute the amount of under- or oyerapplied overhead in each department at the end of theyear and indicate whether it is under- or overapplied.1 |PageActivity 2Mr. J. G. Pigg, IIl is the sole owner of a brick company that manufactures custom bricks used inupscale homes. No two customers have the same type of bricks. The bricks go through threeprocesses: mixing, shaping, and firing. The company uses a job order cost system and computesa predetermined overhead rate in each department. The mixing department bases its rate ondirect materials, the shaping department bases its rate on machine hours, and the firingdepartment bases its rate on direct labor hours. At the beginning of the year, the company madethe following estimates:

Requirement A: The calculation of the predetermined overhead rate is as follows: The resultant…

Activity 1 Stoll Manufacturing, Inc. uses a job order costing system. The company uses predetermined overhead rates in applying manufacturing overhead to individual jobs. The predetermined overhead rate in Department X is based on direct labor hours, the rate in Department Y is based on machine hours, and the rate in Department Z is based on direct labor cost. At the beginning of the most recent year, members of Stoll's management team made the following estimates for the year: 80,000 50,000 $400,000 $200,000 $560,000 Department Y 26,000 85,000 $150,000 $. 26.000 $340,000 60,000 23,000 $800,000 $ 42,000 $240,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead a. Compute the predetermined overhead rates for Departments X, Y, and Z. b. Stoll Manufacturing's records show the following information for Job #6854, which was entered into production on January 17 and completed on March 7. Department Y 54 Direct labor hours Machine hours Direct labor cost Direct materials 375 125 $1,390 $2,065 420 200 $2,400 $ 842 120 $1,080 $1,260 Compute the total manufacturing overhead applied to Job #6854. c. On December 31, Stoll showed the following actual costs and operating data for all jobs worked on during the year: 76,000 54,000 $395,200 $215,900 $540,000 Department Y 28,920 87,200 $138,000 $.24.380 $345,000 Z. 63,000 21,000 $815,000 $ 39,080 $254,000 Direct labor hours Machine hours Direct labor cost Direct materials Manufacturing overhead Compute the amount of under- or overapplied overhead in each department at the end of the year and indicate whether it is under- or overapplied

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q