Question;Acc 561;wiley plus week 4 E15-5, E16-3;E17-1;E15-5Duggan Company applies manufacturing overhead to;jobs on the basis of machine hours used. Overhead costs are expected to total;$353,920 for the year, and machine usage is estimated at 126,400 hours. For the;year, $368,283 of overhead costs are incurred and 130,100 hours are used.;(a)Compute the manufacturing overhead rate for the;year. (Round answers to 2 decimal places, e.g. 1.25.);(b) What is the amount of under or over-applied;overhead at December 31?;(c) Prepare the adjusting entry to assign the under;or over-applied overhead for the year to cost of goods sold.;E16-3 The ledger of Custer Company has the;following work in process account.;Work in Process?Painting;5/1 Balance 4,170;5/31 Materials 7,190;5/31 Labor 3,510;5/31 Overhead 2,210;5/31 Transferred out?;5/31 Balance?;Production records show that there were 500 units;in the beginning inventory, 30% complete, 1,460 units started, and 1,450 units;transferred out. The beginning work in process had materials cost of $2,480 and;conversion costs of $1,690. The units in ending inventory were 40% complete.;Materials are entered at the beginning of the painting process.;Instructions;(a) How many units are in process at May 31?;(b) What is the unit materials cost for May?;(c) What is the unit conversion cost for May?;(d) What is the total cost of units transferred out;in May?;(e) What is the cost of the May 31 inventory?;E17-1 Wilkins Inc. has two types of handbags;standard and custom. The controller has decided to use a plantwide overhead;rate based on direct labor costs. The president has heard of activity-based;costing and wants to see how the results would differ if this system were used.;Two activity cost pools were developed: machining and machine setup. Presented;below is information related to the company?s operations.;Standard Custom;Direct labor costs $43,700 $102,000;Machine hours;1,500 1,380;Setup hours 96 440;Total estimated overhead costs are $298,400.;Overhead cost allocated to the machining activity cost pool is $195,100, and;$103,300 is allocated to the machine setup activity cost pool.;Instructions;(a) Compute the overhead rate using the traditional;(plant-wide) approach.;(b) Compute the overhead rates using the;activity-based costing approach.;(c) Determine the difference in allocation between;the two approaches.
Paper#40906 | Written in 18-Jul-2015Price : $21