Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 58P
Refer to the preceding problem regarding Scholastic Brass Corporation. Complete the following job-cost record for job number T81. (Assume that all of the direct-labor hours for job T81 occurred during the week of 3/8 through 3/12.)
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Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $612,000
of overhead costs and $510,000 of direct labor cost for the period. During March, Shire began and completed Job 56.
1. What is the predetermined overhead rate for this period?
2. Use the information on the following job cost sheet to determine the total cost of Job 56.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
What is the predetermined overhead rate for this period?
Overhead Rate
Numerator:
Denominator:
Overhead Rate
Overhead rate
%3D
Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $624,000
of overhead costs and $520,000 of direct labor cost for the period. During March, Shire began and completed Job 56.
1. What is the predetermined overhead rate for this period?
2. Use the information on the following job cost sheet to determine the total cost of Job 56.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
What is the predetermined overhead rate for this period?
Overhead Rate
Numerator:
/
1
Denominator:
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,500 for direct materials, $9, 700 for direct labor, and S
7,081 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4, 200 for direct materials and $4, 200 for direct labor. Required: 1a. Should any overhead cost be applied to Job Wat
year-end? 1b. How much overhead cost should be applied to Job W? 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year?
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 - Reimel Furniture Company, Inc. incurred the...Ch. 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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- Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,900 for direct materials, $8,100 for direct labor, and $4,617 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,900 for direct materials and $4,000 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at year-end? 1b. How much overhead cost should be applied to Job W? 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required lb Should any overhead cost be applied to Job W at year-end? Should any overhead cost be applied to Job Wat year-end?arrow_forwardSigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,900 for direct materials, $8,600 for direct labor, and $5,332 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,500 for direct materials and $5,200 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at year-end? O Yes O No 1b. How much overhead cost should be applied to Job W? Overhead cost 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? O Raw Materials Work-in-Process O Finished Goodsarrow_forwardShire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $747,500 of overhead costs and $575,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the information on the following job cost sheet to determine the total cost of Job 56.arrow_forward
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