Question

Problem 5-4 A company has two departments that all goods pass through, machining and assembly. Machining...

Problem 5-4

A company has two departments that all goods pass through, machining and assembly. Machining overhead is applied based on machine hours and assembly overhead is applied based on direct labor hours. Data on each department is as follows:

Machining Assembly
Budgeted overhead $75,000 $40,000
Budgeted direct labor hours 5,000 10,000
Budgeted machine hours 25,000 1,000
Actual overhead $75,400 $39,200
Actual direct labor hours 5,203 9,980
Actual machine hours 25,040 850

A. Calculate the overhead rate for each department.

Machining OH rate $ per machine hour
Assembly OH rate $ per direct labor hour

B. What is each department's applied overhead?

Machining applied OH $
Assembly applied OH $

C. Calculate each department's overhead variance. Specify whether it is overapplied or underapplied.

Machining OH variance $
Assembly OH variance $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Part 1 Machining Assembly
Budgeted OH 75000 40000
Budgeted direct labor hours 5000 10000
Overhead Rate $          15.00 $            4.00
Part 2 Machining Assembly
Actual DL Hours 5203 9980
OH Rate $          15.00 $            4.00
Applied OH $ 78,045.00 $ 39,920.00
Part 3 Machining Assembly
Applied OH $ 78,045.00 $ 39,920.00
Actual OH $ 75,400.00 $ 39,200.00
Overapplied $    2,645.00 $        720.00
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing...
1. Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Customizing Machine-hours 12,000 19,000 Direct labor-hours 2000 5000 Total fixed manufacturing overhead cost $ 50,400 $...
Tracey Company of Cincinnati, Ohio has two manufacturing departments—Machining and Assembly. The company considers all of...
Tracey Company of Cincinnati, Ohio has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Machining Assembly Total Manufacturing overhead $500,000 $100,000 $600,000 Direct labor-hours 10,000 50,000 60,000 Machine-hours 50,000 5,000 55,000 Job A Machining Assembly Total Direct labor-hours 5 10 15 Machine-hours 11 2...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Machining Assembly Total Manufacturing overhead $ 500,000 $ 100,000 $ 600,000 Direct labor hours 10,000 50,000 60,000 Machine hours 50,000 5,000 55,000 Job A Machining Assembly Total Direct labor hours 5 10 15...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Machining Assembly Total Manufacturing overhead $ 7,056,000 $ 441,000 $ 7,497,000 Direct labor-hours 21,000 336,000 357,000 Machine-hours 336,000 16,000 352,000 Job A Machining Assembly Total Direct labor-hours 5 10 15 Machine-hours 11 2...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Machining Assembly Total Manufacturing overhead $ 9,522,000 $ 529,000 $ 10,051,000 Direct labor hours 23,000 414,000 437,000 Machine hours 414,000 18,000 432,000 Job A Machining Assembly Total Direct labor hours 5 10 15...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Machining Assembly Total Manufacturing overhead $ 18,032,000 $ 784,000 $ 18,816,000 Direct labor hours 28,000 644,000 672,000 Machine hours 644,000 23,000 667,000 Job A Machining Assembly Total Direct labor hours 5 10 15...
Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department,...
Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: Machining Department Assembly Department Budgeted manufacturing overhead $ 4,000,000 $ 3,080,000 Actual...
Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department,...
Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: Machining Department Assembly Department Budgeted manufacturing overhead $ 4,000,000 $ 3,080,000 Actual...
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser...
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Department Testing Department Total Overhead $571,000 $696,620 $1,267,620 Direct labor hours 49,500 43,065 92,565 Machine hours 88,750 68,338 157,088 Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are...
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser...
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Department Testing Department Total Overhead $338,000 $630,000 $968,000 Direct labor hours 130,000 40,000 170,000 Machine hours 45,000 120,000 165,000 Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT