Fontanez Week 2 Assignment
DeVry Univers
ACCT346 Weekly Ass
Week 2
Directions: Your assignment this week is to answer the 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 were selected from the general ledger of Ocean City
Work-in-process inventory
Raw materials inventory
Finished goods inventory
$0
$28,000
$40,000
Additional data:
1) Actual manufacturing overhead for January amounted to $62,000.
2) Total direct labor cost for January was $63,000.
3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called fo
4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 dir
5) Cost of direct materials placed in production during January totaled $123,000. There were no indirect material r
6) January 31 balance in raw materials inventory was $35,000.
7) Finished goods inventory balance on January 31 was $34,500.
What is the cost of goods manufactured for January? Show your work for full credit.
Raw Materials beginning +
Work in Process beginning +
$0.00
Direct Materials $28,000.00
$123,000.00
Materials used +
$116,000.00
3. Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of ro used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, w is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its produc cost pools:
3a. What is the predetermined overhead allocation rate
ACCT346 Weekly Ass
Week 2
Directions: Your assignment this week is to answer the 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 were selected from the general ledger of Ocean City
Work-in-process inventory
Raw materials inventory
Finished goods inventory
$0
$28,000
$40,000
Additional data:
1) Actual manufacturing overhead for January amounted to $62,000.
2) Total direct labor cost for January was $63,000.
3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called fo
4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 dir
5) Cost of direct materials placed in production during January totaled $123,000. There were no indirect material r
6) January 31 balance in raw materials inventory was $35,000.
7) Finished goods inventory balance on January 31 was $34,500.
What is the cost of goods manufactured for January? Show your work for full credit.
Raw Materials beginning +
Work in Process beginning +
$0.00
Direct Materials $28,000.00
$123,000.00
Materials used +
$116,000.00
3. Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of ro used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, w is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its produc cost pools:
3a. What is the predetermined overhead allocation rate