Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20xt: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. Direct Material Direct Labor Machine Hours $21,000 $35,000 22,000 65,000 8,800 64 1,200 65 700 66 2,000 44,000 15,000 67 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($32,000), indirect labor ($60,100). indirect materials used ($5.100), and other factory costs ($139,600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,900 for the firm. Required: 1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per machine hour
Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20xt: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. Direct Material Direct Labor Machine Hours $21,000 $35,000 22,000 65,000 8,800 64 1,200 65 700 66 2,000 44,000 15,000 67 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($32,000), indirect labor ($60,100). indirect materials used ($5.100), and other factory costs ($139,600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,900 for the firm. Required: 1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per machine hour
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 11E: Leen Production Co. uses the job order cost system of accounting. The following information was...
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