Topics: Cost accounting, Accounts receivable, Generally Accepted Accounting Principles Pages: 4 (729 words) Published: March 19, 2013
Daniel Whalen
Cost Accounting: Professor Joseph
Homework Chapter 4
Indirect Cost PoolsMachining DepartmentAssembly Department
Manufacturing OverheadManufacturing Overhead

Cost Allocation BaseMachine HoursDirect Manufacturing Labor Costs Cost Object: ProductIndirect Costs
Direct Costs
Direct CostsDirect MaterialsDirect 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
1)Indirect Cost PoolClient Support: $13,600,000
Cost Allocation BaseProfessional Labor: 256% Profession Labor Cost Cost Object:Consulting
Direct CostsProfessional Labor: $5,312,500
2)Markup Rate of professional labor costs:21,250,000/5,312,500=400% 3)
Direct Costs;
Professional Labor$10,075
Indirect Costs:
Client Support25,79235,867
Operating Income$4,433
Turner will bid $40,300 in order to earn its target operating income of 11% of revenues 22
12nd 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 units=...
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