Managerial Accounting
15th Edition
ISBN: 9780078025631
Author: Ray H Garrison, Eric Noreen, Peter C. Brewer Professor
Publisher: McGraw-Hill Education
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Chapter 3, Problem 21P
EXERCISE 2−14 Job-Orders 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 ear, Yancey made the following estimates:
| Direct labor-dollars to support all productions | $8,000,000 |
| Fixed overhead cost | $4,800,000 |
| Variable overhead cost per direct labor-dollar | $0.05 |
Required:
- Compute the predetermined overhead rate.
- During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
| Direct materials | $1,259,000 |
| Direct labor cost | $2,400,000 |
Compute the total
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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
$1,414,000
Direct labor cost.
$ 2,661,000
Compute the total job cost for this particular film.
$ 8,870,000…
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…
Pratice Problem 3
A company's individual job sheets show these costs for Jobs 298, 299, and
300. Direct material is RO 2,228, RO 23,945, and RO 4,231 respectively.
Direct labor is RO 2,391, RO 23,492, and RO 3,413, respectively.
Overhead is applied at 1.75 times the direct labor cost. Use the data on the
cost sheets to perform these tasks:
You are required to :
Prepare an entry to record the assignment of direct material to work in
process.
Prepare an entry to record the assignment of direct labor to work in process.
Prepare an entry to record the assignment of manufacturing overhead to work
in process.
●
Chapter 3 Solutions
Managerial Accounting
Ch. 3.A - Prob. 1ECh. 3.A - Prob. 2ECh. 3.A - Prob. 3ECh. 3.A - PROBLEM 3A-4 Activity-Based Absorption Costing as...Ch. 3.A - Prob. 5PCh. 3.A - CASE 3A-6 Activity-Based Absorption Costing and...Ch. 3.B - Prob. 1ECh. 3.B - Prob. 2ECh. 3.B - Prob. 3PCh. 3.B - Prob. 4C
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - 3-9 What is underapplied overhead? Overapplied...Ch. 3 - Prob. 10QCh. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - This Excel worksheet relates to the Dickson...Ch. 3 - This Excel worksheet relates to the Dickson...Ch. 3 - Prob. 3AECh. 3 - This Excel worksheet relates to the Dickson...Ch. 3 - Prob. 1F15Ch. 3 - Prob. 2F15Ch. 3 - Prob. 3F15Ch. 3 - Prob. 4F15Ch. 3 - Prob. 5F15Ch. 3 - Prob. 6F15Ch. 3 - Prob. 7F15Ch. 3 - Prob. 8F15Ch. 3 - Prob. 9F15Ch. 3 - Prob. 10F15Ch. 3 - Prob. 11F15Ch. 3 - Prob. 12F15Ch. 3 - Prob. 13F15Ch. 3 - Prob. 14F15Ch. 3 - Prob. 15F15Ch. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - EXERCISE 24 Computing Total Job Costs and Unit...Ch. 3 - EXERCISE 2-5 Computing Total Job Costs and Unit...Ch. 3 - Prob. 6ECh. 3 - EXERCISE 2-7 Job-Order Costing; Working Backwards...Ch. 3 - Prob. 8ECh. 3 - EXERCISE 3-9 Journal Entries and T-accounts...Ch. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Prob. 17ECh. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - EXERCISE 2—13 Departmental Predetermined Overhead...Ch. 3 - EXERCISE 214 Job-Orders Costing for a Service...Ch. 3 - Prob. 22PCh. 3 - PROBLEM 2—16 Plantwide Predetermined Overhead...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - PROBLEM 2-21 Plant wide Versus Multiple...Ch. 3 - CASE 2-22 Plantwide versus Departmental Overhead...Ch. 3 - Prob. 30C
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