Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 3, Problem 29E
Garrett Toy Company incurred the following costs in April to produce job number TB78, which consisted of 1,000 teddy bears that can walk, talk, and play cards.
Direct Material:
4/1/20x0 Requisition number 101: 400 yards of fabric at $.80 per yard
4/5/20x0 Requisition number 108: 500 cubic feet of stuffing at $.30 per cubic foot
Direct Labor:
From employee time cards for 4/1/20x0 through 4/8/20x0: 500 hours at $12 per hour
Manufacturing
Applied on the basis of direct-labor hours at $2.00 per hour.
On April 30, 700 of the bears were shipped to a local toy store.
Required: Prepare a job-cost record using the information given above. (Use Exhibit 3–3 as a guide.)
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Hartley Uniforms produces uniforms. The company allocates manufacturing overhead
based on the machine hours each job uses. Hartley Uniforms reports the following cost
data for the past year:
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7,600 hours
6,100 hours
Direct labor hours
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7,200 hours
6,300 hours
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$23,000
Indirect materials
$48,500
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Depreciation on trucks used to deliver
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solla
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$70,000
$40,000
$11,000
Depreciation on plant and equipment
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$42,000
Customer service hotline
$19,000
$21,000
Plant utilities
$35,900
$38,400
Direct labor cost
$72,500
$85,500
Requirements
1odel tba
1. Compute the predetermined manufacturing overhead rate.
2. Calculate the allocated manufacturing overhead for the past year.
3. Compute the underallocated or overallocated manufacturing overhead. How will this
underallocated or overallocated manufacturing overhead be disposed of?
4.
How can managers usA acco
Garrett Toy Company incurred the following costs in April to produce job number TB78, which consisted of 1,000 teddy bears that can walk, talk, and play cards.
Direct Material:4/1/20x0 Requisition number 101: 400 yards of fabric at $.80 per yard4/5/20x0 Requisition number 108: 500 cubic feet of stuffing at $.30 per cubic footDirect Labor:From employee time cards for 4/1/20x0 through 4/8/20x0: 500 hours at $12 per hourManufacturing Overhead:Applied on the basis of direct-labor hours at $2.00 per hour.On April 30, 700 of the bears were shipped to a local toy store.Required: Prepare a job-cost record using the information given above. (Use Exhibit 3–3 as a guide.)
Nautical Corporation manufactures custom-made wood wall units. The following data pertain to Job X4A:Direct materials placed into production$9,000Direct labor hours worked300 hoursDirect labor rate per hour$15Machine hours worked100 hoursFactory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units.One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?a. $13,500b. $20,250c. $15,750d. $9,000
Chapter 3 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 3 - List and explain four purposes of product costing.Ch. 3 - Explain the difference between job-order and...Ch. 3 - How is the concept of product costing applied in...Ch. 3 - What are the purposes of the following documents:...Ch. 3 - Why is manufacturing overhead applied to products...Ch. 3 - Explain the benefits of using a predetermined...Ch. 3 - Describe one advantage and one disadvantage of...Ch. 3 - Describe an important cost-benefit issue involving...Ch. 3 - Explain the difference between actual and normal...Ch. 3 - When a single, volume-based cost driver (or...
Ch. 3 - Prob. 11RQCh. 3 - Describe the process of two-stage cost allocation...Ch. 3 - Define each of the following terms, and explain...Ch. 3 - Describe how job-order costing concepts are used...Ch. 3 - What is meant by the term cost driver? What is a...Ch. 3 - Describe the flow of costs through a...Ch. 3 - Give an example of how a hospital, such as the...Ch. 3 - Why are some manufacturing firms switching from...Ch. 3 - What is the cause of over applied or under applied...Ch. 3 - Briefly describe two ways of closing out over...Ch. 3 - Describe how a large retailer such as Lowes would...Ch. 3 - Prob. 22RQCh. 3 - For each of the following companies, indicate...Ch. 3 - The controller for Tender Bird Poultry, Inc....Ch. 3 - Finley Educational Products started and finished...Ch. 3 - Bodin Company manufactures finger splints for kids...Ch. 3 - McAllister, Inc. employs a normal costing system....Ch. 3 - Garrett Toy Company incurred the following costs...Ch. 3 - Crunchem Cereal Company incurred the following...Ch. 3 - Prob. 31ECh. 3 - Selected data concerning the past years operations...Ch. 3 - Sweet Tooth Confectionary incurred 157,000 of...Ch. 3 - The following information pertains to Trenton...Ch. 3 - The following data pertain to the Oneida...Ch. 3 - Refer to the data for the preceding exercise for...Ch. 3 - Design Arts Associates is an interior decorating...Ch. 3 - Suppose you are the controller for a company that...Ch. 3 - Laramie Leatherworks, which manufactures saddles...Ch. 3 - Refer to Exhibit 312, which portrays the three...Ch. 3 - Refer to the illustration of overhead application...Ch. 3 - The following data refer to Twisto Pretzel Company...Ch. 3 - Burlington Clock Works manufactures fine,...Ch. 3 - Perfecto Pizza Company produces microwavable...Ch. 3 - Stellar Sound, Inc. which uses a job-order costing...Ch. 3 - Finlon Upholstery, Inc. uses a job-order costing...Ch. 3 - JLR Enterprises provides consulting services...Ch. 3 - Garcia, Inc. uses a job-order costing system for...Ch. 3 - MarineCo, Inc. manufactures outboard motors and an...Ch. 3 - The following data refers to Huron Corporation for...Ch. 3 - Refer to the schedule of cost of goods...Ch. 3 - Marco Polo Map Companys cost of goods sold for...Ch. 3 - Midnight Sun Apparel Company uses normal costing,...Ch. 3 - Marc Jackson has recently been hired as a cost...Ch. 3 - Troy Electronics Company calculates its...Ch. 3 - Tiana Shar, the controller for Bondi Furniture...Ch. 3 - Scholastic Brass Corporation manufactures brass...Ch. 3 - Refer to the preceding problem regarding...Ch. 3 - Prob. 59PCh. 3 - TeleTech Corporation manufactures two different...Ch. 3 - CompuFurn, Inc. manufactures furniture for...Ch. 3 - FiberCom, Inc., a manufacturer of fiber optic...
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