Question

SHIM & SHS Company uses a job-order costing system. The company applies manufacturing overhead to jobs...

SHIM & SHS Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on labor-hours. Beginning of the year, manufacturing overhead and labor-hours were estimated at $160,000 and 40,000 hours respectively, for the year. In June, Job #100 was completed. Materials costs on the job totaled $3,000 and labor costs totaled $4,800 at $6 per hour. Job #100 required 800 labor hours and 1,000 machine hours. At the end of the year, it was determined that the company worked 15,000 labor-hours and 45,000 machine hours for the year, and incurred $190,000 in actual manufacturing overhead costs.

Required:

a. Calculate the predetermined overhead rate for the year.

b. Determine the total costs of Job #100.

c. Assuming that 100 units were completed, determine the unit cost that would appear on the job cost sheet for Job #100 8

d. If SHIM & SHS want to charge to its customer at 40% markup on cost, how much SHIM & SHS charge for Job #100?

Homework Answers

Answer #1
a.) Predetermined Overhead rate $ 4 Per DLH =160000/40000
(Estimated Overhead / Estimated labor hours )
b.) Job #100
Amount $
Material Costs          3,000
Labor Costs          4,800
Applied Overhead ( 800 x 4 )          3,200
Total Cost of Jon #100 $ 11,000
c.) Unit cost for job #100 $ 110 Per Unit =11000/100
d.) SHIM & SHS charge for Job #100 $ 15,400 =11000*140%
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined...
Benner Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. Manufacturing overhead and direct labor hours were estimated at $66,000 and 22,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,923 and labor costs totaled $2,325 at $7.50 per hour (310 hours worked on this job). At the end of the year, it was determined that the company worked 23,975 direct...
Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a...
Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. In June, Job #315 was completed. Materials costs on the job totaled $1,500 and labor costs totaled $2,400 at $6 per hour. At the end of the year, it was determined that the company worked 15,000 direct labor-hours for...
1. Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using...
1. Granite Company uses a job-order costing system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year, manufacturing overhead and direct labor-hours were estimated at $80,000 and 16,000 hours respectively, for the year. At the end of the year, it was determined that the company actually worked 15,000 direct labor-hours for the year, and incurred $78,000 in actual manufacturing overhead costs. In June, Job #315 was completed. Materials costs on the...
ob-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead...
ob-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $135,000 for the year and the estimated direct labor hours were 15,000 hours. In May, Job #378 was completed. Direct materials totaled $8,500. Total labor costs were $14,000 at $16 per hour. At the end of the year, it was determined that the company worked 16,000 direct labor...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 40,000 machine-hours and incur $178,000 in manufacturing overhead cost. The following transactions occurred during the year:    a. Raw materials requisitioned for use in production, $194,000 (70% direct and 30% indirect). b. The following costs were incurred for employee services:      Direct labor $ 164,000 Indirect labor $ 22,000...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 34,000 machine-hours and incur $176,800 in manufacturing overhead cost. The following transactions occurred during the year:    a. Raw materials requisitioned for use in production, $308,000 (80% direct and 20% indirect). b. The following costs were incurred for employee services:      Direct labor $ 179,000 Indirect labor $ 37,000...
The York Co. uses a job order cost system and applies factory overhead to individual jobs...
The York Co. uses a job order cost system and applies factory overhead to individual jobs by using predetermined overhead rates. In department X, overhead is applied on the basis of machine hours, and in department Y, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates: Dept X Dept Y Direct Labor $210,000 $384,000 Factory Overhead $216,000 $105,000 Machine Hours 36,000 900 Direct Labor Hours 18,000 25,000 Production order...
The York Co. uses a job order cost system and applies factory overhead to individual jobs...
The York Co. uses a job order cost system and applies factory overhead to individual jobs by using predetermined overhead rates. In department X, overhead is applied on the basis of machine hours, and in department Y, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates: Dept X Dept Y Direct Labor $210,000 $384,000 Factory Overhead $216,000 $105,000 Machine Hours 36,000 900 Direct Labor Hours 18,000 25,000 Production order...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.80 per machine-hour was based on a cost formula that estimates $232,400 of total manufacturing overhead for an estimated activity level of 83,000 machine-hours. Required: 1. Assume that during the year the company works only 78,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT