Managerial Accounting Questio
PROBLEM
1. The Huyden Company builds equipment to customer's specifications. On March 1, two jobs were in process with the following costs and information:
| Job 43 | Job 44 | Direct materials | $10,200 | $34,400 | Direct labor | 21,000 | 10,400 | Applied overhead* | 4,950 | 7,370 | Total cost | $36,150 | $52,170 | | | | Machine hours | 45 | 67 |
*Applied on the basis of machine hours
During March, Job 45 was started and Job 44 was completed and delivered to the customer. Job 43 was missing a part that was backordered and would be completed in June. The following costs were incurred in March:
| Job 43 | Job 44 | Job 45 | Direct materials | $2,300 | $4,500 | $12,700 | Direct labor | $2,400 | $3,300 | $4,500 | Machine hours | 21 | 11 | 23 |
It is Huyden's policy to bill clients at cost plus 40 percent.
Required:
a. | Calculate the overhead rate that Huyden is using. | | | b. | Calculate the overhead applied to each job during the month of March. | | | c. | Calculate the balance in work in process on March 31. | | | d. | What was the price of Job 44? |
2. The Dewey Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate is based on direct labor hours. Estimates for the year just ended are as follows:
Estimated manufacturing overhead | $240,000 | Estimated direct labor hours | 40,000 |
During the year Dewey Company used 37,000 direct labor hours.
At the end of the year, Dewey Company records revealed the following information:
Raw materials inventory | $ 35,000 | Work-in-process inventory | 60,000 | Finished goods inventory | 105,000 | Cost of goods sold | 400,000 | Manufacturing overhead costs incurred | 210,000 |
Required:
a. | Calculate the predetermined overhead rate for the year. | | | b. | Determine the amount of overhead applied during the year. | | | c. | Determine the amount of
1. The Huyden Company builds equipment to customer's specifications. On March 1, two jobs were in process with the following costs and information:
| Job 43 | Job 44 | Direct materials | $10,200 | $34,400 | Direct labor | 21,000 | 10,400 | Applied overhead* | 4,950 | 7,370 | Total cost | $36,150 | $52,170 | | | | Machine hours | 45 | 67 |
*Applied on the basis of machine hours
During March, Job 45 was started and Job 44 was completed and delivered to the customer. Job 43 was missing a part that was backordered and would be completed in June. The following costs were incurred in March:
| Job 43 | Job 44 | Job 45 | Direct materials | $2,300 | $4,500 | $12,700 | Direct labor | $2,400 | $3,300 | $4,500 | Machine hours | 21 | 11 | 23 |
It is Huyden's policy to bill clients at cost plus 40 percent.
Required:
a. | Calculate the overhead rate that Huyden is using. | | | b. | Calculate the overhead applied to each job during the month of March. | | | c. | Calculate the balance in work in process on March 31. | | | d. | What was the price of Job 44? |
2. The Dewey Company uses a predetermined overhead rate to apply manufacturing overhead to production. The rate is based on direct labor hours. Estimates for the year just ended are as follows:
Estimated manufacturing overhead | $240,000 | Estimated direct labor hours | 40,000 |
During the year Dewey Company used 37,000 direct labor hours.
At the end of the year, Dewey Company records revealed the following information:
Raw materials inventory | $ 35,000 | Work-in-process inventory | 60,000 | Finished goods inventory | 105,000 | Cost of goods sold | 400,000 | Manufacturing overhead costs incurred | 210,000 |
Required:
a. | Calculate the predetermined overhead rate for the year. | | | b. | Determine the amount of overhead applied during the year. | | | c. | Determine the amount of