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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d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?
Epsilon Manufacturing Company uses a predetemined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1, 015,000, and they estimated total direct labor costs at $1, 400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: %23 Direct materials cost Direct labour cost Direct labour hours Special Design Cost Distribution quote from haulage company Units of product produced S169.450 $230,000 400 hours $12,300 $17,930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of…
The Fielder manufacturing company uses job order costing system. The company usesmachine hours to apply overhead cost to jobs. At the beginning of 2020, the companyestimated that 7,850 machine hours would be worked and $1,256,000 overhead cost wouldbe incurred during 2020.The following activities took place in the work in process inventory during February:WIP Inventory A/CFebruary 1 Bal. b/f 51,250Direct Materials Used 256,400Other transactions incurred: Indirect material issued to production was $38,000 Total manufacturing labour incurred in February was $345,000, 80% of this amountrepresented direct labour. Other manufacturing overhead costs incurred for February amounted to $340,750. Two jobs were completed with total costs of $324,000 & $240,000 respectively. Theywere sold on account at a margin of 40% on sales.Required:i) Compute Fielder’s predetermined manufacturing overhead rate for 2020.ii) State the journal entries necessary to record the above transactions in the…
Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: Information State University On-the-Go Home Precious Pre-school Direct Materials Cost (food) $54,100 $35,100 $79,700 Direct Labor Cost $43,600 $41,400 $53,500 Labor Hours 3,210 3,690 4,120 The company applies overhead at a rate of $20.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $401,200. The allocated overhead for the month was $149,800, of which $129,200 should be credited to accounts payable and $41,700 should be credited to Accumulated Depreciation.
I also know that the predetermined overhead rate is 40/DLH
For 2020, Roy manufacturing used job costing. The company uses machine-hours as the overhead cost-allocation base. The records show the following information: Estimated Actual Manufacturing overhead costs £800,000 £840,000 Machine-hours 50,000 60,000 The budgeted manufacturing overhead rate for 2020 is ? a. £16 per machine-hour b. £14 per machine-hour c. £16.8 per machine-hour d. £13.3 per machine-hour
During 2019, Vaughn Manufacturing expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Vaughn applied overhead based on direct labor cost. Actual production required an overhead cost of $210000, $470000 in materials used, and $130000 in labor. All of the goods were completed. What amount was transferred to Finished Goods? $795000 $810000 $900000 $1000000
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on directlabor hours. At the beginning of 2018, they estimated total manufacturing overhead costs at$2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost.Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 401. Job stats are as follows:Direct materials cost $173,250Direct labour cost $240,000Direct labour hours 500 hoursSpecial Design Cost $8,750Distribution quote from haulage company $21,700Units of product produced 400 cartons a) Compute Miguel’s Manufacturing Company predetermined manufacturing overhead rate for2018.b) How much manufacturing overhead was allocated to Job #401?c) Calculate the total cost & quotation price of Job #401, given that a margin of 25% is applied.d) How much was the production…
9. Safari Company estimated its total manufacturing overhead costs to be $80,000 and its total direct labour costs to be $160,000 for the year 2019. The actual labour costs were $80,000 for Job 2 during 2019. Manufacturing overhead is applied to jobs on the basis of direct labour cost using a predetermined rate. The amount of overhead assigned to Job 2 during 2019 was $40,000 $25,000 $30,000 $160,000 $80,000
Al Shams Manufacturing LLC has furnished the following information for the month of March 2019: Materials used is RO 45,000, Direct labor is RO 28,000, Labor hours worked is 7,000, Hours of machine operation is 5,000 and Overhead cost is RO 21,000. The department during the period has executed an order (job). The relevant information is as follows: Materials used is RO 2,000, Direct labor is RO 1,200, Labor hours worked is 500 and Hours of machines operation is 225. Calculate the overhead chargeable to the job based on percentage of direct material cost. a. RO 945 b. RO 900 c. RO 933 d. RO 1500
Requirement: Compute for the Factory overhead rate of Department G if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs at $1,203,750, and they estimated total direct labor costs at $1,500,000. The administration and selling overheads are to be absorbed in each job cost at 33½% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for Job # B4000. Data for the job are as follows: Direct materials cost $159,500 Direct labour cost $240,000 400 hours $12,850 Direct labour hours Special Design Cost Distribution quote from haulage company $17,900 a) Compute Everlast Manufacturing Company predetermined manufacturing overhead rate for 2020. b) Determine how much manufacturing overhead was allocated to Job #B4000? c) Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied. d) Given that…

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