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devry acct346 week 2 homework assignment

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Question;DeVry University;ACCT346 Weekly Assignment;Week 2;Directions: Complete the three questions below and please be;sure to show all of your calculation work along with the final answers in the;box provided for each question. Also note that Question #3 has TWO parts, Part;A and Part B. To give yourself more room to insert your calculations and;answers, you may need to add more rows or columns to the boxes below.;1. Biltz Company uses a predetermined manufacturing overhead;rate based on direct labor hours to allocate (apply) manufacturing overhead;costs to jobs. During the year, the company actually incurred total;manufacturing overhead costs of $582,000 and 135,000 direct labor hours were;worked. The company originally estimated that it would incur $525,000 of;manufacturing overhead during the year and that 150,000 direct labor hours;would be worked.;How much was manufacturing overhead over-allocated;(over-applied) or under-allocated (under-applied) for the year?;2. The following;account balances at the beginning of January were selected from the general;ledger of Ocean City Manufacturing Company;Work-in-process (WIP) inventory $0;Raw materials inventory $28,000;Finished goods inventory $40,000;Additional data;1) Actual manufacturing overhead for January amounted to;$62,000.;2) Total direct labor cost for January was $63,000.;3) The predetermined manufacturing overhead rate is based on;direct labor cost. The budget for the year called for $250,000 of direct labor;cost and $350,000 of manufacturing overhead costs.;4) The only job unfinished on January 31 was Job No. 151;for which total direct labor charges were $5,200 (800 direct labor hours) and;total direct material charges were $14,000.;5) Cost of direct materials placed in production during;January totaled $123,000. There were no indirect material requisitions during;January.;6) January 31 balance in raw materials inventory was;$35,000.;7) Finished goods inventory balance on January 31 was;$34,500.;What is the cost of goods manufactured for January? Show;your work for full credit.;3. Vintage Fun;reproduces old-fashioned style roller skates and skateboards. The annual;production and sales of roller skates is 950 units, while 1,750 skateboards are;produced and sold. The company has traditionally used direct labor hours to;allocate its overhead to products. Roller skates require 2.5 direct labor hours;per unit, while skateboards require 1.25 direct labor hours per unit. The total;estimated overhead for the period is $114,300. The company is looking at the;possibility of changing to an activity-based costing system for its products.;If the company used an activity-based costing system, it would have the;following three activity cost pools;3a. What is the predetermined overhead allocation rate using;the traditional costing system?;3b. What is the overhead cost per skateboard using an;activity-based costing system?

 

Paper#38740 | Written in 18-Jul-2015

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