Purchase Solution

Elliot Company and Ryan Company

Not what you're looking for?

Ask Custom Question

18 - 1 Elliot Company estimates that costs of production for the coming year would be:
Raw materials $75,000
Direct labor 90,000
Production overhead 135,000

a) Calculate the overhead rate for the next year, assuming that it is based on direct labor dollars.
b) Journalize the entry necessary to show the total cost of production for the month of May if the raw materials put into production totaled $6,000 and direct labor was $6,600.
c) If actual production overhead costs incurred in May were $9,550, calculate the overabsorbed overhead for the month.

18 - 2
The adjusted trial balance of Ryan Corporation includes the following overhead costs that are to be distributed before the books are closed to its three cost centers: A, B, and C.
Total Building Furniture and Fixtures Machinery and Equipment
Heat, light, power $40,000
Depreciation 23,8000 $3,000 $800 $20,000
Inventories 200
Other 2,210 1,300 60 580
Repairs 5,900 4,000 1,900
Telephone Expense 1,800
Total 73,910

Data used for cost distribution follow:
Cost Center
Cubic feet 600,000 200,000 200,000
square feet of floor space 48,000 6,000 6,000
Number of telephone extensions 9 27 9

Three-fourths of the furniture and fixtures are in Cost Center B and one-fourth is in cost Center C. Half of the inventory is in Cost Center A and half is in Cost Center B. Assume that all building costs except utilities are allocated on the basis of floor space. Utilities are allocated based on cubic feet. All machinery and equipment are in Cost Center A.

Calculate the amount of cost to be allocated to each cost center.

Purchase this Solution

Solution Summary

Your tutorial is attached, in excel. The schedule is labelled so you can follow the process.

Solution provided by:
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution

Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.


This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.