*Budgeted manufactured overhead rate
Mapah company allocated manufacturing overhead cost using a budgeted rate per machine hour.
The following data are available for 2007
• Budgeted manufacturing overhead costs $2.850.000
• Budgeted machine-hours 190.000
• Actual manufacturing overhead costs $2.910.000
• Actual machine hours 195.000
Required:
1. calculate the budgeted manufacturing overhead rate
2. calculate the manufacturing overhead allocated during 2007
3. calculate the amount of under or over allocated manufacturing overhead
answer:
1. budgeted manufacturing overhead rate =
budgeted manufacturing overhead costs / budgeted machine hours
$2850.000 / 190.000 = $15 per budgeted machine hour
2. manufacturing overhead allocated =
budgeted manufacturing overhead rate x actual machine hours
$15 x 195.000 = $2925.000
3. manufacturing overhead allocated – actual manufacturing overhead costs
$2.925.000 - $2.910.000 = $15.000 (over applied)
*Job costing – Accounting for manufacturing overhead
Following is the budget for the plant 2007
Machining dept
Manufacturing overhead $1.800.000
Direct manufacturing labor cost $1.400.000
Direct manufacturing labor hours 100.000
Machine hours 50.000
Assembly dept
Manufacturing overhead $3.600.000
Direct manufacturing labor cost $2.000.000
Direct manufacturing labor hours 200.000
Machine hours 200.000
Hints:
• Machining dept allocated manufacturing overhead costs using machine hours
• Assembly dept allocated manufacturing overhead costs using direct manufacturing labor hours
Required:
1. compute the budgeted manufacturing overhead rate for each department
2. at the end of 2007, the actual manufacturing overhead cost were $2.100.000 in machining dept and $3.700.000 in assembly. Assume that 55.000 actual machine hours were used in machining and that actual direct manufacturing labor cost in assembly were $2.200.000. Compute the over or under allocated manufacturing overhead for each department
answer:
1. machining dept = $1.800.000 / 50.000 = $36 per machine hour
assembly dept = $3.600.000 / 200.000 = $18 per direct labor hour
2. machining dept:
$36 x 55.000 = $1.980.000
Actual overhead = $2.100.000
($120.000) under applied
Assembly dept:
Hint: $3.600.000 / $2.000.000 = 180%
Allocated overhead = 180% x $2.200.000 = $3.950.000
Actual overhead $3.700.000
$250.000 over applied
*Job costing – unit cost – and ending work in process
Raymond company produces pipes. In april 2007, it completed all outstanding orders, and then, in may 2007, it worked on only two job M1 and M2
M1
Direct materials $75.000
Direct manufacturing labor $275.000
M2
Direct materials $50.000
Direct manufacturing labor $200.000
Direct manufacturing labor is paid at the rate of $25 per hour. Manufacturing overhead cost are allocated at a budgeted rate of $20 per direct manufacturing labor hour. Only job M1 was completed in may
Required:
1. compute the total cost of job M1
2. 1.500 pipes were produced for job M1, calculate cost per pipe
3. prepare the journal entry transferring job M1 to finished goods
answer:
1. hint: $275.000 / $25 = 11.000 hour
overhead = 11.000 x $20 = $220.000
total cost : $75.000 + $275.000 + $220.000 = $570.000
2. $570.000 / 1500 = $380 per pipe
3. finished goods $570.000
cost of goods sold $570.000
Senin, 10 September 2007
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