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accounts- IJMAC Industries

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Question;Machine hours and electricity costs for IJMAC Industries for 2013 were as follows:MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecembera.Machine HoursElectricity Costs2,000$12,0002,32010,5001,5606,6502,48011,5003,04014,1252,64011,0003,28012,3752,80011,3751,6006,7002,96013,0003,76015,4503,70015,400A. Using the high-low method, developan estimate of variable electricity costsper machine hour.Required: Transfer the information in the table above to an Excel spreadsheet and prepare the solutions to theB. U the the high-low method, developfollowing questions. Your solution should showsing appropriate formulas and the detailed calculations. In usingaand functions to show your understanding of basic Excel functions.Excel, you should use appropriate formulas n estimate of fixed electricity costs permonth.Clearly identify your answer to each question.MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecembera.Machine HoursElectricity Costs2,000$1 developC. Using the high-low method,2,0002,320a cost function 10,500for monthly electricity1,5606,650costs.2,48011,5003,04014,1252,64011,0003,28012,3752,80011,3751,6006,700D. Estimate electricity costs for a month2,96013,000 hours arein which 3,000 machine3,76015,450worked.3,70015,400A. Using the high-low method, developan estimate of variable electricity costsper machine hour.B. Using the high-low method, developan estimate of fixed electricity costs permonth.C. Using the high-low method, developa cost function for monthly electricitycosts.Part 2.Page 3Job order costingReed Incorporated uses a job-order costing system and a predetermined overhead rate based on machinehours.At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000and machine hours would be 8,000.The following information pertains to December of the current year:Actual manufacturing overhead cost incurred in December was $61,000.Jobs 10 and 12 were completed during December. Job 10 was sold to customer (see c below).Required: Transfer the information in the table above to an Excel spreadsheet and prepare the solutions to thefollowing questions. Your solution should show the appropriate formulas and the detailed calculations. In usingExcel, you should use appropriate formulas and functions to show your understanding of basic Excel functions.Clearly identify your answer to each question.a. Compute the predetermined overhead application rate.b. Determine the total cost associated with each job.c. Jobs 10 and 12 were completed during the month. If job 10 was delivered to customers that paid $50,000cash, what is the gross profit for job 10?d. What is the cost assigned to ending work in process?e. What is the cost assigned to ending finished goods?f. How much was overhead over/under applied?

 

Paper#42472 | Written in 18-Jul-2015

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