ACC 312 Study Guide - Midterm Guide: Cost Accounting, A143 Road
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Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
Molding | Fabrication | Total | |||||||
Estimated total machine-hours used | 2,500 | 1,500 | 4,000 | ||||||
Estimated total fixed manufacturing overhead | $ | 15,000 | $ | 18,000 | $ | 33,000 | |||
Estimated variable manufacturing overhead per machine-hour | $ | 3.40 | $ | 4.20 | |||||
Job P | Job Q | |||||
Direct materials | $ | 33,000 | $ | 18,000 | ||
Direct labor cost | $ | 37,000 | $ | 15,500 | ||
Actual machine-hours used: | ||||||
Molding | 3,700 | 2,800 | ||||
Fabrication | 2,600 | 2,900 | ||||
Total | 6,300 | 5,700 | ||||
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. 1. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) 3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) 4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) 6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) 8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.) 9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) 10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) 11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) 12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.) 13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.) |
1.)
Snappy Company has a job-order costing system and uses apredetermined overhead rate based on direct labor-hours to applymanufacturing overhead to jobs. Manufacturing overhead cost anddirect labor hours were estimated at $69,000 and 30,000 hours,respectively, for the year. In July, Job #334 was completed at acost of $2,010 in direct materials and $1,800 in direct labor. Thelabor rate is $6 per hour. By the end of the year, Snappy hadworked a total of 35,500 direct labor-hours and had incurred$79,350 actual manufacturing overhead cost.
If Job #334 contained 100 units, the unit product cost on thecompleted job cost sheet would be: (Round intermediatecalculations to 2 decimal places.)
2.)Buckeye Company has provided the followingdata for maintenance cost:
PriorYear | CurrentYear | |
Machine hours | 15,700 | 17,900 |
Maintenance cost | $32,500 | $35,140 |
The best estimate of the cost formula for maintenance would be:(Do not round intermediate calculations. Round yourVariable cost per unit to 2 decimal places.)
3.)
Bakker Corporation applies manufacturing overhead on the basisof direct labor-hours. At the beginning of the most recent year,the company based its predetermined overhead rate on totalestimated overhead of $110,250 and 3,500 estimated directlabor-hours. Actual manufacturing overhead for the year amounted to$112,200 and actual direct labor-hours were 3,250.
The applied manufacturing overhead for the year was: (Roundyour intermediate calculations to 2 decimal places.)
pleas help me ASAP
Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,436 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:
Estimated direct materials: | |
30 meters at $30 per meter | $ 900 |
Estimated direct labor: | |
16 hours at $30 per hour | 480 |
Estimated factory overhead (75% of direct labor cost) | 360 |
Total estimated costs | $1,740 |
Markup (40% of production costs) | 696 |
Total estimate | $2,436 |
On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10.
The related The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.materials requisitions and The form on which the amount of time spent by each employee and the labor cost incurred for each individual job, or for factory overhead, are recorded.time tickets are summarized as follows:
Materials Requisition No. | Description | Amount | |
112 | 15 meters at $30 | $450 | |
114 | 19 meters at $30 | 570 |
Time Ticket No. | Description | Amount | |
H10 | 8 hours at $30 | $240 | |
H11 | 12 hours at $30 | 360 |
Required:
Enter amounts as positive numbers.
1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.
2. Record the costs incurred, and complete the job order cost sheet.
JOB ORDER COST SHEET | |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||||||||||||||||||||
30 Meters at $30 | 16 Hours at $30 | Direct Materials | |||||||||||||||||||||||||||||||||||||||||||||
Direct Labor | |||||||||||||||||||||||||||||||||||||||||||||||
Factory Overhead | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | Total cost | |||||||||||||||||||||||||||||||||||||||||||||
ACTUAL | |||||||||||||||||||||||||||||||||||||||||||||||
Direct Materials | Direct Labor | Summary | |||||||||||||||||||||||||||||||||||||||||||||
Mat. Req. No. | Description | Amount | Time Ticket No. | Description | Amount | Item | Amount | ||||||||||||||||||||||||||||||||||||||||
112 | 15 Meters at $30 | H10 | 8 Hours at $30 | Direct Materials | |||||||||||||||||||||||||||||||||||||||||||
Direct Labor | |||||||||||||||||||||||||||||||||||||||||||||||
114 | 19 Meters at $30 | H11 | 12 Hours at $30 | Factory Overhead | |||||||||||||||||||||||||||||||||||||||||||
Total | Total | Total Cost |
What is the best explanation for the variances between actual costs and estimated costs. (For this purpose, assume that the additional meters of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.)
a.)The direct materials cost exceeded the estimate by $120 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor.
b.)Management didn't provide enough direction to complete tasks on budget.
c.)The direct materials cost exceeded the estimate by $75 because 3 meters of materials were spoiled.
d.) The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee.