ACCT 311 Job Cost: Fickel Company has two manufacturing departments

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Asse



Direct materials


Direct labor

Required:


1. What is the total manufacturing cost assigned to Job N-60?
Note: Do not round intermediate calculations.
2. If Job N-60 consists of 10 units, what is its unit product cost?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.


Explanation
1 and 2.
The total direct labor-hours required for Job N-60:


Direct labor cost (a)
Direct labor wage rate per hour (b)
Total direct labor hours (a) ÷ (b)
The total manufacturing cost and unit product cost for Job N-60 is computed as follows:
Direct materials ($440 + $65)
Direct labor ($493 + $187)
Assembly Department ($32 per DLH × 14.5 DLHs)
Testing & Packaging Department ($28 per DLH × 5.5 DLHs)
Total manufacturing cost
Total manufacturing cost (a)
Number of units in the job (b)
Unit product cost (a) ÷ (b)


Taveras Corporation currently operates at 50% of its available manufacturing capacity. It uses job-order costing with a plantwide prede
Machine-hours required to support estimated production
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
Required:


1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,900. The following information pertains to this job:
Direct materials
Direct labor cost
Machine-hours used
Compute the total manufacturing cost assigned to Job P90.


Explanation


1. The estimated total overhead cost is computed as follows:
Y = $3,760,000 + ($2 per MH)(235,000 MHs)

,Estimated fixed overhead
Estimated variable overhead: $2 per MH × 235,000 MHs
Estimated total overhead cost
The plantwide predetermined overhead rate is computed as follows:
Estimated total overhead (a)
Estimated total machine-hours (b)
Predetermined overhead rate (a) ÷ (b)
2. Overhead applied ($18 per MH × 86 MHs) = $1,548




Sigma Corporation applies overhead cost to jobs based on direct labor cost. Job V, which was started and completed during the curren
Required:
1a. Should any overhead cost be applied to Job W at year-end?
1b. How much overhead cost should be applied to Job W?
2. How will the costs included in Job W’s job cost sheet be reported within Sigma Corporation’s financial statements at the end of the y


Explanation
1a.
Yes, overhead should be applied to Job W at year-end.
1b.
Because $4,756 of overhead was applied to Job V on the basis of $8,200 of direct labor cost, the company’s predetermined overhead r

Job W direct labor cost (a)

Predetermined overhead rate (b)
Manufacturing overhead applied to Job W (a) × (b)
2. The direct materials ($4,200), direct labor ($4,400), and applied overhead ($2,552) for Job W will be included in Work in Process on




Wilmington Company has two manufacturing departments—Assembly and Fabrication. All of its manufacturing overhead costs are fixe
Estimated Data
Manufacturing overhead costs
Direct labor-hours
Machine-hours
Job Bravo
Direct labor-hours
Machine-hours
Required:


1. If Wilmington uses a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would

, 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and mach


Note: Round your intermediate calculations to 2 decimal places.


Explanation


1. The predetermined plantwide overhead rate is computed as follows:
Estimated manufacturing overhead (a)
Estimated total direct labor-hours (b)
Predetermined overhead rate (a) ÷ (b)
The overhead applied to Job Bravo is computed as follows:
Direct labor-hours worked on Bravo (a)
Predetermined overhead rate (b)
Overhead applied to Bravo (a) × (b)
2. The predetermined overhead rate in Assembly is computed as follows:
Estimated manufacturing overhead (a)
Estimated total direct labor-hours (b)
Predetermined overhead rate (a) ÷ (b)
The predetermined overhead rate in Fabrication is computed as follows:
Estimated manufacturing overhead (a)
Estimated total machine-hours (b)
Predetermined overhead rate (a) ÷ (b)
The overhead applied to Job Bravo is computed as follows:

Quantity of allocation base used (a)
Predetermined overhead rate (b)
Overhead applied to Bravo (a) × (b)




High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company’s job-order costing system uses de



Direct labor-hours
Machine-hours
Fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning



Direct labor-hours
Machine-hours
Direct materials
Direct labor cost
Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.
2. Compute the total overhead cost applied to Job 205.