Use the following information to answer the next 3 questions Kite Corp. manufactures custom cabinets and uses a job-order costing system. The company had two jobs in process at the beginning of October: Job No. 64 with a total beginning cost of $56,700 and Job No. 65 with a total beginning cost of $83,300. The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $3,021,000 and 57,000 machine hours. The company worked on four jobs during the month of October. Direct materials, direct labor incurred, and machine hours consumed were as follows: Direct Material $21,000 Job No. Direct Labor Machine Hours 64 $35,000 $22,000 $65,000 $ 8,800 1,500 900 2,000 200 65 $44,000 $15,000 66 67 Indirect production costs incurred during October included charges for depreciation ($34,000), indirect labor ($68,000), indirect materials ($5,000), and other factory costs ($139,100). Kite Corp. completed lob No. 64 and lob No. 66 during October. Iob 64 was sold on October 22. What is the overhead variance for the month of October? a. $10,600 under applied b. $10,600 over applied c. $5,650 under applied d. $5,650 over applied e. $7,950 under applied f. $7,950 over applied g. $2,300 under applied h. $2,300 over applied j. None of the above
Use the following information to answer the next 3 questions Kite Corp. manufactures custom cabinets and uses a job-order costing system. The company had two jobs in process at the beginning of October: Job No. 64 with a total beginning cost of $56,700 and Job No. 65 with a total beginning cost of $83,300. The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $3,021,000 and 57,000 machine hours. The company worked on four jobs during the month of October. Direct materials, direct labor incurred, and machine hours consumed were as follows: Direct Material $21,000 Job No. Direct Labor Machine Hours 64 $35,000 $22,000 $65,000 $ 8,800 1,500 900 2,000 200 65 $44,000 $15,000 66 67 Indirect production costs incurred during October included charges for depreciation ($34,000), indirect labor ($68,000), indirect materials ($5,000), and other factory costs ($139,100). Kite Corp. completed lob No. 64 and lob No. 66 during October. Iob 64 was sold on October 22. What is the overhead variance for the month of October? a. $10,600 under applied b. $10,600 over applied c. $5,650 under applied d. $5,650 over applied e. $7,950 under applied f. $7,950 over applied g. $2,300 under applied h. $2,300 over applied j. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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Use the following information to answer the next 3 questions
Kite Corp. manufactures custom cabinets and uses a job-order costing system. The company had
two jobs in process at the beginning of October: Job No. 64 with a total beginning cost of $56,700
and Job No. 65 with a total beginning cost of $83,300.
The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead
and machine activity for the year were anticipated to be $3,021,000 and 57,000 machine hours.
The company worked on four jobs during the month of October. Direct materials, direct labor
incurred, and machine hours consumed were as follows:
Direct Labor
$35,000
$22,000
$65,000
$ 8,800
Job No.
Direct Material
Machine Hours
64
$21,000
1,500
900
2,000
200
65
$44,000
$15,000
66
67
Indirect production costs incurred during October included charges for depreciation ($34,000),
indirect labor ($68,000), indirect materials ($5,000), and other factory costs ($139,100). Kite Corp.
completed Job No. 64 and Job No. 66 during October. Job 64 was sold on October 22nd.
What is the overhead variance for the month of October?
3.
a. $10,600 under applied b. $10,600 over applied c. $5,650 under applied d. $5,650 over applied e.
$7,950 under applied f. $7,950 over applied g. $2,300 under applied h. $2,300 over applied į. None of
the above
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