Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3] Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials Direct labor cost. Compute the total job cost for this particular film. Required 1 Complete the question by entering your answers in the tabs given below. $ 1,316,000 $ 2, 523,000 Required 2 Direct materials Direct labor Overhead applied Total job cost $ 8, 410,000 $ 5,046, 000 $0.20 Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decimal places.) $ < Required 1 Required 2 >
Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3] Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions Fixed overhead cost Variable overhead cost per direct labor-dollar Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials Direct labor cost. Compute the total job cost for this particular film. Required 1 Complete the question by entering your answers in the tabs given below. $ 1,316,000 $ 2, 523,000 Required 2 Direct materials Direct labor Overhead applied Total job cost $ 8, 410,000 $ 5,046, 000 $0.20 Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decimal places.) $ < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3]
Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as
costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its
overhead cost to films based on direct labor-dollars.
At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions
Fixed overhead cost
Variable overhead cost per direct labor-dollar
Required:
1. Compute the predetermined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials
Direct labor cost.
Compute the total job cost for this particular film.
Required 1
Complete the question by entering your answers in the tabs given below.
$ 1,316,000
$ 2, 523,000
Required 2
Direct materials
Direct labor
Overhead applied
Total job cost
$ 8, 410,000
$ 5,046, 000
$0.20
Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decimal places.)
$
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F933c0c63-eb3d-4c0d-ad59-3bf2a496afd3%2F720e411d-1f7e-4445-8eac-e79ba33e076a%2Fc8chrjl_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3]
Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as
costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its
overhead cost to films based on direct labor-dollars.
At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions
Fixed overhead cost
Variable overhead cost per direct labor-dollar
Required:
1. Compute the predetermined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials
Direct labor cost.
Compute the total job cost for this particular film.
Required 1
Complete the question by entering your answers in the tabs given below.
$ 1,316,000
$ 2, 523,000
Required 2
Direct materials
Direct labor
Overhead applied
Total job cost
$ 8, 410,000
$ 5,046, 000
$0.20
Compute the total job cost for this particular film. (Round your intermediate calculations to 2 decimal places.)
$
< Required 1
Required 2 >
![Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3]
Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as
costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its
overhead cost to films based on direct labor-dollars.
At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions
Fixed overhead cost
Variable overhead cost per direct labor-dollar
Required:
1. Compute the predetermined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials
Direct labor cost
$ 1,316,000
$ 2, 523,000
Compute the total job cost for this particular film.
Complete the question by entering your answers in the tabs given below.
Required 1 Required 2
$ 8, 410, 000
$ 5,046, 000
$ 0.20
Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
per DL$
Predetermined overhead rate
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F933c0c63-eb3d-4c0d-ad59-3bf2a496afd3%2F720e411d-1f7e-4445-8eac-e79ba33e076a%2Fksobwce_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 2-14 (Algo) Job-Order Costing for a Service Company [LO2-1, LO2-2, LO2-3]
Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as
costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its
overhead cost to films based on direct labor-dollars.
At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions
Fixed overhead cost
Variable overhead cost per direct labor-dollar
Required:
1. Compute the predetermined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials
Direct labor cost
$ 1,316,000
$ 2, 523,000
Compute the total job cost for this particular film.
Complete the question by entering your answers in the tabs given below.
Required 1 Required 2
$ 8, 410, 000
$ 5,046, 000
$ 0.20
Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)
per DL$
Predetermined overhead rate
< Required 1
Required 2 >
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