Managerial Accounting Questio

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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...
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