Question;ACC/561WileyPlus, Week 4 Assignment;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?;(a);(b);What is the unit materials cost for May?;(c);What is the unit conversion cost for May?;(b);(c);(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.
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