Homework
Daniel Whalen
02/18/2013
Cost Accounting: Professor Joseph
Homework Chapter 4
20 1)
Indirect Cost Pools Machining Department Assembly Department Manufacturing Overhead Manufacturing Overhead Cost Allocation Base Machine Hours Direct Manufacturing Labor Costs
Cost Object: Product Indirect Costs Direct Costs
Direct Costs Direct Materials Direct Manufacturing Labor
Budgeted Manufacturing Overhead Rate: Machining Department=$36 per hour, Assembly= 180% of Direct manufacturing labor costs
2) Job 494 MOH costs allocated to: (2,000 Machine Hours *$36)+($15,000 Labor*180%)= $99,000
3) Machining MOH Allocated: 55,000 Machine Hours* $36= $1,980,000 Machining MOH Actual: 2,100,000 Machining MOH Under-allocated= $120,000 Assembly MOH Allocated: $2,200,000*180%)= $3,960,000 Assembly MOH Actual: 3,700,000 Assembly MOH Over-allocated= $260,000
21
1) Indirect Cost Pool Client Support: $13,600,000
Cost Allocation Base Professional Labor: 256% Profession Labor Cost
Cost Object: Consulting
Direct Costs Professional Labor: $5,312,500
2) Markup Rate of professional labor costs:21,250,000/5,312,500= 400%
3)
Revenues $40,300
Direct Costs; Professional Labor $10,075
Indirect Costs: Client Support 25,792 35,867
Operating Income $4,433
Turner will bid $40,300 in order to earn its target operating income of 11% of revenues
22
1 2nd Quarter: 500 units*0.5=250 Direct Labor Hours*$12= Variable MOH $3,000 + (250*$16=Direct Labor Cost $4,000) + (500 units*$7.50=Direct Materials Cost $3,750)+(Fixed MOH $10,500)= Total Manufacturing Costs $21,250/500 units= $42.50 Total Manufacturing cost per unit 2nd quarter 3rd Quarter: 150 units*0.5=75 Direct Labor Hours*$12= Variable MOH $900+(75*$16=Direct Labor Cost $1,200)+(150 units*$7.50= Direct Materials Cost $1,125)+(Fixed MOH $10,500)= Total Manufacturing Costs
$13,725/150
02/18/2013
Cost Accounting: Professor Joseph
Homework Chapter 4
20 1)
Indirect Cost Pools Machining Department Assembly Department Manufacturing Overhead Manufacturing Overhead Cost Allocation Base Machine Hours Direct Manufacturing Labor Costs
Cost Object: Product Indirect Costs Direct Costs
Direct Costs Direct Materials Direct Manufacturing Labor
Budgeted Manufacturing Overhead Rate: Machining Department=$36 per hour, Assembly= 180% of Direct manufacturing labor costs
2) Job 494 MOH costs allocated to: (2,000 Machine Hours *$36)+($15,000 Labor*180%)= $99,000
3) Machining MOH Allocated: 55,000 Machine Hours* $36= $1,980,000 Machining MOH Actual: 2,100,000 Machining MOH Under-allocated= $120,000 Assembly MOH Allocated: $2,200,000*180%)= $3,960,000 Assembly MOH Actual: 3,700,000 Assembly MOH Over-allocated= $260,000
21
1) Indirect Cost Pool Client Support: $13,600,000
Cost Allocation Base Professional Labor: 256% Profession Labor Cost
Cost Object: Consulting
Direct Costs Professional Labor: $5,312,500
2) Markup Rate of professional labor costs:21,250,000/5,312,500= 400%
3)
Revenues $40,300
Direct Costs; Professional Labor $10,075
Indirect Costs: Client Support 25,792 35,867
Operating Income $4,433
Turner will bid $40,300 in order to earn its target operating income of 11% of revenues
22
1 2nd Quarter: 500 units*0.5=250 Direct Labor Hours*$12= Variable MOH $3,000 + (250*$16=Direct Labor Cost $4,000) + (500 units*$7.50=Direct Materials Cost $3,750)+(Fixed MOH $10,500)= Total Manufacturing Costs $21,250/500 units= $42.50 Total Manufacturing cost per unit 2nd quarter 3rd Quarter: 150 units*0.5=75 Direct Labor Hours*$12= Variable MOH $900+(75*$16=Direct Labor Cost $1,200)+(150 units*$7.50= Direct Materials Cost $1,125)+(Fixed MOH $10,500)= Total Manufacturing Costs
$13,725/150