Selected cost data for Classic Print Co. are as follows: Estimated manufacturing overhead cost for the year $ 125,000 Estimated direct labor cost for the year 78,125 Actual manufacturing overhead cost for the year 116,000 Actual direct labor cost for the year 67,000 Requirements4 Marks 1.Compute the predetermined overhead allocation rate per direct labor dollar. 2.Prepare the journal entry to allocate overhead costs for the year. 3.Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead. 4.Prepare the journal entry to adjust for the underallocatedor overallocated manufacturing overhead.
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.
Selected cost data for Classic Print Co. are as follows:
|
Estimated |
$ 125,000 |
|
Estimated direct labor cost for the year |
78,125 |
|
Actual manufacturing overhead cost for the year |
116,000 |
|
Actual direct labor cost for the year |
67,000 |
Requirements4 Marks
1.Compute the predetermined overhead allocation rate per direct labor dollar.
2.Prepare the
3.Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead.
4.Prepare the journal entry to adjust for the underallocatedor overallocated manufacturing overhead.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
