Comprehensive Problem 5 (Algo) [The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $300,000. During the past year, actual plantwide overhead was $244,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours Department A Department B $ 567,000 585,000 $ 109,200 132,000 58,000 15,000 14,000 54,000 60,000 14,000 14,700 56,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. Direct materials $22,000 Direct labor cost: Department A (2,600 hr) 39,000 Department B (800 hr) 12,400 Machine-hours projected: Department A 110 Department B Units produced 1,200 13,000 Comprehensive Problem 5 (Algo) Part c c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? c-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? c-3. Which of the overhead allocation methods would you recommend? Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Bid price
Comprehensive Problem 5 (Algo) [The following information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $300,000. During the past year, actual plantwide overhead was $244,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours Department A Department B $ 567,000 585,000 $ 109,200 132,000 58,000 15,000 14,000 54,000 60,000 14,000 14,700 56,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows. Direct materials $22,000 Direct labor cost: Department A (2,600 hr) 39,000 Department B (800 hr) 12,400 Machine-hours projected: Department A 110 Department B Units produced 1,200 13,000 Comprehensive Problem 5 (Algo) Part c c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? c-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? c-3. Which of the overhead allocation methods would you recommend? Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Bid price
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1CMA
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning