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Acc 561 wiley plus - week 4

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Question;Exercise 15-5;Duggan 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, $368,283 of overhead costs are incurred and 130,100 hours are;used.;(a);Compute the;manufacturing overhead rate for the year. (Round answers to 2 decimal;places, e.g. 1.25.);Manufacturing;overhead rate;$;per machine;hour;(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.;Exercise 16-3;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?;Exercise 17-1;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#45150 | Written in 18-Jul-2015

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