Direct manufacturing labour costs 80 Indirect manufacturing costs: Plant supplies used 12 Property taxes on plant 2 Plant utilities 10 Indirect manufacturing labour costs 40 Depreciation––plant and equipment 18 Miscellaneous manufacturing overhead costs 20 102 Manufacturing costs incurred during 2011 392 Add beginning work-in-process inventory‚ 1 Jan. 2011 20 Total manufacturing costs to account for 412 Deduct ending work-in-process inventory‚ 31 Dec. 2011 (4) Cost of
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Vanessa ACCT 606 CASE 2 2/8/2011 1. I use: overhead for period / allocation base for period (in this case-DL)=Overhead Allocation Rate In 1987‚ OH$107‚954/DL$24‚682=437% 2. The changes from 1987 to 1988 were not significant. However‚ the changes in overhead allocation rates in 1989 and 1990 appeared to be significant when compared to 1987 rates. Because in 1988 and 1989‚ total overhead costs decreased about 25%‚ but direct labor costs‚ direct material costs in decreased even more
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three questions below. Please note that Question #3 has add more rows or columns to the box if needed. 1. Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overh $582‚000 and 135‚000 direct labor hours were worked. The company estimated that it would incur $525‚000 of ma By how much was manufacturing overhead overallocated or underallocated for the year? 582‚000 - 582‚000= $57‚000.00 2. The following account balances at the beginning of January
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CHAPTER 25 STANDARD COSTS AND BALANCED SCORECARD SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 9. 3 C 17. 3 C 25. 4 C sg33. 3 K 2. 1 K 10. 3 K 18. 4 K 26. 5 K sg34. 4 K 3. 1 C 11. 3 C 19. 4 C 27. 6 C sg35. 4 C 4. 1 K 12. 3 K 20. 4 K 28. 9 C sg36. 5 K 5. 2 C 13. 3 K 21. 4 K 29. 9 C sg37. 6 K 6. 3 C 14. 3 C 22. 4 K 30. 9 C sg38. 7 K 7. 3 K 15. 3 K 23. 4 C sg31. 1 K 8. 3 C 16. 3 K 24. 4 C
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a standard unit cost. 3. Prepare a flexible budget and describe how variance analysis is used to control costs. 4. Compute and analyze direct materials variances. 5. Compute and analyze direct labor variances. 6. Compute and analyze manufacturing overhead variances. 7. Explain how variances are used to evaluate managers’ performance. Objective 1 Define standard costs and describe how managers use standard costs in the management cycle…… is a method of cost control that includes a measure of actual
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Direct Materials P47‚000 Direct Labor 28‚000 Factory Overhead: Depreciation – Factory equipment P1‚000 Factory rent 2‚000 Factory insurance 500 Materials handling 1‚500 5‚000 Manufacturing cost P80‚000 2. (a) Decrease in finished goods inventory P35‚000 Add: Raw materials purchased P430‚000 Direct labor payroll 200‚000 Factory overhead 300‚000 930‚000 Total P965‚000 Less: Increase
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|Debit |Credit | |Work in Process |152‚000 | | |Manufacturing Overhead |
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identifying how much overhead should be allocated to each category. We broke out the overhead by using Direct Labor (DL) as a % since most of the overhead accounts are labor related. As a result‚ overhead allocation for each product in 1987 is the following: Fuel Tanks 17%‚ Manifolds 24%‚ Doors 11%‚ Muffler/Exhausts 23%‚ and Oil Pans 26% for 1987. Muffler/Exhausts‚ manifolds and Oil Pans are both labor intensive‚ so under this method‚ they bear a higher percentage of the overhead costs. Now that Bridgeton
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CASE 1: CASES FOR MANAGEMENT DECISION MAKING 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system. This is the estimate of how much overhead will be needed based on estimate of production. 2. What are the advantages and disadvantages of using the cost of each print as a manufacturing overhead cost driver? Advantage: Costs will be more accurate‚ costs are tailored more too specific products. Disadvantage: Relies
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management is directly related to how the company is accounting for their overhead relating to each product. The company had been using a traditional way of allocating overhead. (Exhibit 2) This was a simple and inexpensive way for the company to accomplish this task. However‚ it really didn’t accurately assign overhead to each product. Destin realized this and had it controller‚ Peggy Alford‚ design a revised way for allocating overhead. (Exhibit 3) This revised system didn’t seem to answer any questions
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