Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 341,800 61,500 140,000 211,998 39,400 33,750 22,500 55,000 19, 200 $ 925,148 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour. 2. Determine the amount of applied overhead if 18,600 actual hours are worked in the upcoming year.

Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 341,800 61,500 140,000 211,998 39,400 33,750 22,500 55,000 19, 200 $ 925,148 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour. 2. Determine the amount of applied overhead if 18,600 actual hours are worked in the upcoming year.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 10E: Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair...

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Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Box Springs estimates there will be four orders in the next year, and those jobs will involve: What is the total cost of the jobs?
Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?
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Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resourd ources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job OA. may increase overall sales as other jobs will be cross-subsidized B. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company C. is fairly billed because resources are allocated uniformly to all jobs D. will likely seek to do business with competitors E. is grossly underbilled for the job, while other jobs will be unfairly overbilled Resources Consumed Cost Driver Direct labour-hours Machine-hours Square metres of area Actual Level 150 1,700 80 - X Estimates of…
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. A. Lumber used to construct decks ($12.00 per square foot) B. Carpenter labor used to construct decks ($10 per hour) C. Construction supervisor salary ($45,000 per year) D. Depreciation on tools and equipment ($6,000 per year) E. Selling and administrative expenses ($35,000 per year) F. Rent on corporate office space ($34,000 per year) G. Nails, glue, and other materials required to construct deck (varies per job)
Jackson Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following: (Click the icon to view the costs.) Read the potrement Requirement 1. Compute Jackson's predetermined manufacturing overhead rate. Determine the formula to calculate the predetermined overhead rate, then calculate the rate Predetermined overhead rate
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 338,800 58,500 142,500 235,790 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.41 per hour. 2. Determine the amount of applied overhead if 17,900 actual hours are worked in the upcoming year. Required 1 40,400 33,750 22,500 54,500 25,700 $ 952,440 Complete this question by entering your answers in the tabs below.
Bret's RV Manufacturing uses job order costing to account for it's manufacturing costs. The company estimates total manufacturing overhead costs for the coming year to be $282,783. The total direct materials costs are estimated to be $784,555. The total direct labor hours are estimated to be 67,670 hours with direct labor costs estimated at $541,365. What is the Predetermined Overhead rate if the company applies overhead based on direct labor hours? 52.24% 36.04% O417.89% 23.93% O4,18%
1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company. Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200.00 Estimated total Office Manager/Knitting Supervisor wages $36,000.00 Estimated office utilities $3,000.00 Estimated factory utilities $4,800.00 Estimated factory rent $18,000.00 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $712,400 Shop direct labor 520,000 Shop and repair equipment depreciation 31,200 Shop supervisor salaries 86,600 Shop property taxes 15,700 Shop supplies 12,100 Advertising expense 14,200 Administrative office salaries 61,300 Administrative office depreciation expense 7,800 Total costs and expenses $1,461,300 The average shop direct labor rate is $20.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
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What follows are a number of resources that are used by a manufacturer of futons. Assume thatthe output measure or cost driver is the number of futons produced. All direct labor is paid on an hourly basis, and hours worked can be easily changed by management. All other factoryworkers are salaried.a. Power to operate a drill (to drill holes in the wooden frames of the futons)b. Cloth to cover the futon mattressc. Salary of the factory receptionistd. Cost of food and decorations for the annual Fourth of July party for all factory employeese. Fuel for a forklift used to move materials in a factoryf. Depreciation on the factoryg. Depreciation on a forklift used to move partially completed goodsh. Wages paid to workers who assemble the futon framei. Wages paid to workers who maintain the factory equipmentj. Cloth rags used to wipe the excess stain off the wooden framesRequired:Classify the resource costs as variable or fixed.