Question

During 2013, Arb Company incurred the following direct labor costs: January Php20,000 and February Php30,000. Arb...

  1. During 2013, Arb Company incurred the following direct labor costs: January Php20,000 and February Php30,000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled Php19,500 and Php35,700. Actual overhead for the 2 months, respectively, totaled Php24,500 and Php32,500.

Instructions

Determine if overhead is over- or underapplied for each of the two months and the respective amounts.

  1. Graham Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2013 for the company and for Job 62:

Company Job 62

Direct materials Php60,000 Php4,500

Direct labor Php25,000 Php2,500

Manufacturing overhead costs Php72,000

Machine hours 80,000 1,350

During 2013, the actual machine-hours totaled 84,000, and actual overhead costs were Php71,000.

Instructions

(a) Compute the predetermined overhead rate.

(b) Compute the total manufacturing costs for Job 62.

(c) How much overhead is over or underapplied for the year for the company? State amount and whether it is over- or underapplied.

(d) If Graham Manufacturing sells Job 62 for Php14,000, compute the gross profit.

  1. Jardin Company begins the month of March with Php17,000 of work in process costs from Job 324. Information from job cost sheets shows the following additional costs assigned during March, April, and May of 2013:

Manufacturing Costs Assigned

Job No. March    April   May

324 Php26,000

325 20,000 Php28,000 Php15,000

326 41,000 11,000

327 16,000 34,000

328 29,000 51,000

Job 324 was completed in March. Jobs 325 and 327 were completed in May, and Job 326 was completed in April. Jobs are sold during the month after completion. Total revenue for jobs sold during the 3-month period is Php145,000.

Instructions

Calculate the balances of the work in process and finished goods inventory accounts at the end of May.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
During 2019, Arb Company incurred the following direct labor costs: January $20,000 and February $30,000. Arb...
During 2019, Arb Company incurred the following direct labor costs: January $20,000 and February $30,000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $19,500 and $35,700. Actual overhead for the 2 months, respectively, totaled $25,000 and $33,500. Calculate overhead applied. January $ February $ Determine if overhead is over- or underapplied for each of the two months and the respective amounts. January $ underapplied or overapplied February $...
Problema IV (20 Puntos) Guaraguao Manufacturing is a small manufacturer that uses machine-hours as its activity...
Problema IV (20 Puntos) Guaraguao Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2018 for the company and for Job 62:                                                                    Company                 Job 325                                                                   Estimasted                                                                   Annual Cost              Direct materials                                    $70,000                   $5,500 Direct labor                                           $30,000                   $2,300 Manufacturing overhead costs             $67,500 Machine hours                                        90,000                     2,000 During 2018, the actual machine-hours totaled 94,000, and actual manufacturing overhead costs were $72,000. Instructions: Compute the predetermined overhead rate. Compute the total manufacturing costs for Job 325....
Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to...
Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2019. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2019. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000. 6. The amount of overhead assigned to Job 3 during 2007...
Aspen Company estimates its manufacturing overhead to be $1,271,000 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $1,271,000 and its direct labor costs to be $620,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $184,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $309,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $134,000. Actual...
During January 2020, the following transactions occurred: 3. Labor was incurred as follows. All labor costs...
During January 2020, the following transactions occurred: 3. Labor was incurred as follows. All labor costs are recorded as Payroll Payable initially, and the liability is reduced when the cash payment is made.                         Direct Labor:                                        Hours            Dollars                                     Job 870                                         150             $2,400                                     Job 871                                         650               9,750                                     Job 872                                       1200             16,200                                     Job 873                                         400               6,200                                                       Job 874                                         350               5,950                         Indirect labor                                                                 9,250                         Marketing and administrative labor                            39,400 4. Manufacturing overhead was applied...
Aspen Company estimates its manufacturing overhead to be $506,000 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $506,000 and its direct labor costs to be $506,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $244,650. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $407,750. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $163,100. Actual...
A company uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead...
A company uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000. The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000. The manufacturing overhead for the year would be: A) $12,000 underapplied B) $12,000 overapplied C)...
Aspen Company estimates its manufacturing overhead to be $615,600 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $615,600 and its direct labor costs to be $513,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $211,575. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $368,550. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $102,375. Actual...
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to be $900,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $20,000 for Job 301, $30,000 for Job 302, and $40,000 for Job 303. For the year, actual manufacturing overhead was $479,000 and total direct labor cost was $850,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
Southern Rim Parts estimates its manufacturing overhead to be $472,500 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $472,500 and its direct labor costs to be $1,050,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $64,000 for Job 301, $89,000 for Job 302, and $170,000 for Job 303. For the year, actual manufacturing overhead was $404,000 and total direct labor cost was $835,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT