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# Job order and activity-based costing

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Snappy Company, estimated the following for 2009:
Manufacturing Overhead \$100,000
Direct Labor hours 40,000

At year end (12/31/2009), actual DLH = 45,000
And actual overhead costs were \$110,250.

A. Compute the overhead application rate for 2009.

B. Computer the over/under applied over head for 2009. Indicate if the amount is
Over or under applied.

C. If Job #334 required \$5,000 of direct materials and 400 DLH at a cost
Of \$6/hour, compute the total cost for Job #67.

Total Cost

D. If Job #334 consisted of 200 units, what is the cost per unit?

Question #3: Activity-Based Costing
Anfuso Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system. Calculate the per unit cost for Products X and Y.
Activity Cost Pools (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) \$159,500
Batch setup (setups) \$269,000
General factory (direct labor-hours) \$166,500

Expected Activity
Activity Cost Pools Total Product X Product Y
Machine related 11,000 8,000 3,000
Batch setup 10,000 6,000 4,000
General factory 9,000 5,000 4,000

1. Calculation of Activity Rates:
(A) (B) (A/B)
Activity Estimated Expected Activity
Cost Pool Overhead Cost Activity Rate

Total \$

2. Calculation of unit product costs:

Manufacturing Overhead
Product X Product Y
Activity Activity Expected Expected
Cost Pool Rate Activity Amount Activity Amount

Total
Number of units 15,000 2,000
Overhead costs per unit:

Total Unit Cost:
Prod. X Prod. Y
Direct materials \$30 \$75
Direct labor: 25 35
Manf. O/H
Unit Costs

Question 4:Wacky Company showed the following information for August:
Percent Complete
Units Materials Conversion
Work in process, beginning 800 75% 50%
Started into production 15,000
Completed and transferred out 13,800
Work in process, ending 2,000 80% 40%
Materials Conversion
Work in process, beginning \$4,640 \$ 2,540
Cost added during August \$97,000 \$ 215,000
Prepare a production report for Wacky for August.
1. Quantity Schedule and Equivalent Units
Units to be accounted for: Qty. Sch.
Beginning W-I-P
Started in production
Total units
Equivalent units
Conversion
Units accounted for as follows: Materials Costs

Transferred out
Ending W-I-P
Total units and equivalent units
2. Cost per Equivalent Unit Total Conversion Whole
Cost Materials Costs Unit
Cost to be accounted for:
Beginning W-I-P
Costs added during the month
Total cost
Equivalent units of production:
Cost per Equivalent Unit
3. Cost Reconciliation Equivalent units
Total Conversion
Costs accounted for as follows: Cost Materials Costs
Transferred out:
Ending W-I-P
Materials
Conversion Costs
Total W-I-P

Total Cost

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#### Solution Summary

The solution explains three questions relating to job order costing, activity based costing and process costing

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