Dunder Corp. manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $881,000 and estimated direct labor hours are 392,000. In October, the company incurred 50,000 direct labor hours. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the predetermined overhead allocation rate. Total estimated overhead cost ? Total estimated quantity of the overhead allocation base = Predetermined Overhead Allocation Rate (Per Direct Labor Hour) = 2. Determine the amount of overhead allocated in October. Predetermined Overhead Allocation Rate ? Actual Quantity of the Allocation Base Used = Allocated Manufacturing Overhead Cost =
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
1. Compute the predetermined overhead allocation rate.
| Total estimated overhead cost | ? | Total estimated quantity of the overhead allocation base | = | Predetermined Overhead Allocation Rate (Per Direct Labor Hour) |
|---|---|---|---|---|
| = |
2. Determine the amount of overhead allocated in October.
| Predetermined Overhead Allocation Rate | ? | Actual Quantity of the Allocation Base Used | = | Allocated |
|---|---|---|---|---|
| = |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
