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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

    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
    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
    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