James Graham Manufacturing is a small manufacturer that uses machine-hours as its activitybase for assigned overhead costs to jobs. The company estimated thle following amounts for2019 for the company, for Job 62 and Job 63:Company$60,000$25,000$72,000Job 62Job 63Direct materialsDirect laborManufacturing$4,500$2,500$7,100$4,200overhead costsMachine hours90,0001,3503,100During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were$71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units werecompleted during the month.Instructions:a) Compute the predetermined overhead rate.b) Compute the total manufacturing costs for Job 62 and Job 63.c) Compute the unit cost of Jobs 62 and 63. - prm,d) How much overhead is over or underapplied for the year for the company? State amountand whether it is over- or underapplied.e) If Graham Manufacturing sells Job 62 for $14,000 and $18,000 for Job 63, compute thegross profit.

a) Calculation of predetermined overhead rate Predetermined overhead rate = Estimated manufacturing…

Answered: James Graham Manufacturing is a small…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturing overhead costs using direct manufacturing labor costs. Creative Solutions provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2019 Actual Results for 2019 $2,000,000 $1,900,000 $1,500,000 $1,450,000 $2629571 $2752429 During March, the job-cost record for Job X contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 O a. 210510 O b. 2664777 O c. 573641.60 O d. 32183 Required: At the end of 2019, compute the under- or overallocated manufacturing overhead under normal costing. Tavlor TOP Team
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