Categories

ACCT 386 - Week 2 - Homework - Question 4

ACCT 386 - Week 2 - Homework - Question 4
Price: $4.99
This Tutorial contains following Attachments
  • ACCT 386 - Week 2 - Homework - Question 4.doc
Qty:     - OR -   Add to Wish List

ACCT 386 - Week 2 - Homework - Question 4

There may be chances that the figures given in our question and your question doesn't matches. Don't worry, we are here to help you. Just write to us at studentwhiz@gmail.com and your answer is with you in no time.

 

Question 4

WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the company’s management made the following estimates for the year:

  

Department

 


  

Preparation

Fabrication

  Machine-hours

80,000   

31,000   

  Direct labor-hours

33,000   

50,900   

  Direct materials cost

$189,000   

$199,000   

  Direct labor cost

$274,000   

$511,000   

  Fixed manufacturing overhead cost

$224,000   

$468,280   

  Variable manufacturing overhead per machine-hour

$2.40   

-      

  Variable manufacturing overhead per direct labor-hour

-      

$4.40   


    Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job:

  

Department

 


  

Preparation

Fabrication

  Machine-hours

390     

69     

  Direct labor-hours

84     

128     

  Direct materials cost

$942     

$1,260     

  Direct labor cost

$690     

$990