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Managerial Accounting

Manufacturing overhead $225,000 incurred, $14,500 overpaid, overhead rate is $5.00 . How many hours dis company work?

Under job order costing a company started with one job ($6,000) with $500 of cost assigned at the time. Other production cost were assigned as follows: Job #1= $6,000, Job #2 = 8,100, Job #3$2,400. Job #1 and #2 were completed by the end of the month, but Job# 3 was not. What was the cost of good manufactured? What was process inventory balance at end of month?

Manufacturing overhead and direct labor were $80,000 and $16,00 respectively. Materials costs were $1,500, labor costs were $2,400 @ $6.00 an hour. At years end the company had worked 15,000 direct labor hours and incurred 78,000 in manufacturing overhead costs.

What was the predetermined overhead rate for the year? What was the amount of overhead charged to the job for the year? What was over-under applied overhead for theyear? Assming 100 units were completed what was the unt product cost?

Solution Preview

Manufacturing overhead $225,000 incurred, $14,500 overpaid, overhead rate is $5.00 . How many hours dis company work?

The actual overhead is $225,000. This applied overhead is 14,500 higher. The applied overhead is 225,000+14,500=239,500. The overhead rate is $5. WE have the following equation
Hours Worked X Rate per hour = applied overhead. We get
Hours Worked X 5 = 239,500
Hours Worked = 239,500/5=47,900.

Under job order costing a company started with one job ($6,000) with $500 of cost assigned at the time. Other production cost were assigned as follows: Job #1= $6,000, Job #2 = 8,100, Job #3$2,400. Job #1 and #2 were ...

Solution Summary

The solution has various questions in managerial accounting relating to overhead calculations.

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