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University of Phoenix ACC 561 Week-4-E15-5-E16-3-E17-1 Solution




Acc 561 wiley plus week 4 E15-5, E16-3, E17-1;E15-5 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.);(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#80365 | Written in 18-Jul-2015

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