E3-20A Compute a predetermined overhead rate and calculate cost of jobs based on direct labor hours (Learning Objectives 3 & 4) Elkland Heating & Cooling installs and services commercial heating and cooling systems. Elkland uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Elkland estimated that its overhead for the coming year would be $61,500. It also anticipated using 4,100 direct labor hours for the year. In November, Elkland started and completed the following two jobs: Job 102 Direct materials used. $10,000 Direct labor hours used 72 Elkland paid a $24-per-hour wage rate to the employees who worked on these two Job 101 $15,000 155

E3-20A Compute a predetermined overhead rate and calculate cost of jobs based on direct labor hours (Learning Objectives 3 & 4) Elkland Heating & Cooling installs and services commercial heating and cooling systems. Elkland uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Elkland estimated that its overhead for the coming year would be $61,500. It also anticipated using 4,100 direct labor hours for the year. In November, Elkland started and completed the following two jobs: Job 102 Direct materials used. $10,000 Direct labor hours used 72 Elkland paid a $24-per-hour wage rate to the employees who worked on these two Job 101 $15,000 155

Name: answer in text form please (without image) E3-20A Compute a predetermi
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: answer in text form please (without image) E3-20A Compute a predetermined overhead rate and calculate cost of jobsbased on direct labor hours (Learning Objectives 3 & 4)Elkland Heating & Cooling installs and services commercial heating and cooling sy

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 7PB: Please use the information from this problem for these calculations. After grouping cost pools and...

See similar textbooks

Similar questions

E18-17 Comparing job order costing versus process costing Learning Objective 1 For each of the following products or services, indicate if the cost would most likely be determined using a job order costing system or a process costing system. a. Soft drinks b. Automobile repairs c. Customized furniture d. Aluminum foil e. Lawn chairs f. Chocolate candy bars g. Hospital surgery h. Pencils
S18-1 Comparing job order costing versus process costing Learning Objective 1 Identify each costing system characteristic as job order costing or process costing. a. One Work-in-Process Inventory account b. Production cost reports c. Cost accumulated by process d. Job cost sheets e. Manufactures homogenous products through a series of uniform steps f. Multiple Work-in-Process Inventory accounts g. Costs transferred at end of period h. Manufactures batches of unique products or provides specialized services
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?
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?
True/false 1) Activity-based costing information is recorded on a job sheet each month which is later posted to the general ledger at the end of the year. ________ 2. A factory production manager’s salary is considered an organizational sustaining activity cost. ________ 3. First stage allocation is the process by which overhead costs are assigned to activity cost pools in an activity-based costing system. ________ 4. Interviewing operating-level managers is a poor way of determining cost pools in first-stage allocation. ________ 5. Production accountants applying activity rates to cost pools in activity-based costing will be able to calculate standard costs. ________ 6. The process of budgeting often takes place during the process of evaluation. ________ 7. Preparation of the cash budget often precedes the preparation of the sales budget. ________ 8. The self-imposed budget is the same as a top-down budget. ________ 9. The Chief Executive Officer of a corporation…
Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. Which of the following manufacturers is most likely to use a process cost system? Purse manufacturer Sports drink manufacturer Automobile manufacturer Guitar manufacturer 2. Process and job order cost systems are similar in that both systems _______. record and summarize product costs classify product costs as direct materials, direct labor, and factory overhead allocate factory overhead costs to products All of these choices are correct.
Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturing overhead costs using direct manufacturing labor costs. Creative Solutions provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2019 Actual Results for 2019 $2,000,000 $1,900,000 $1,500,000 $1,450,000 $2629571 $2752429 During March, the job-cost record for Job X contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 O a. 210510 O b. 2664777 O c. 573641.60 O d. 32183 Required: At the end of 2019, compute the under- or overallocated manufacturing overhead under normal costing. Tavlor TOP Team
Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect- cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is: а. Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000. b. Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000. С. Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000. d. Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000.
Show the solution in good accounting form. Thank you! MLB Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined overhead rate. The following information relates to MLB Inc. for the year ended December 31, 2020: Job No. 101 Job No. 102 Job No. 103 Job in Process, January 1, 2020 Direct Materials 40 000 30 000 0 Labor 60 000 40 000 0 Factory Overhead 30 000 20 000 0 Cost added during 2020 Materials 20 000 10 000 100 000 Labor 100 000 200 000 400 000 Factory Overhead ? ? ? Additional information: 1) Actual overhead for the year 2020 amounted to P350,000. 2) Jobs No. 101 and 102 were completed and transferred to finished goods during the year 2020. 3) Job No. 101 was sold during the year 2020. 4) The gross profit rate is 20% based on cost. 1. What is the total manufacturing cost for 2020? a. 1,400,000 b. 1,180,000 c. 480,000 d. 1,200,000 2. What is the cost of goods manufactured for 2020? a.…
p?attempt=D1764924&cmid%3D875183&page%3D4 DEMIC) E-LEARNING SERVICES - SQU LIBRARIES - SQU PORTAL ATTENDAI Time left 1:35:49 A Company uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor cost. The company based its predetermined overhead rate for the current year on total estimated manufacturing overhead cost of 40% of direct labor cost. The job cost sheet of Job2121 shows that the number of units in this job order is 70 units which incurred total of 90 labor-hours. This job consumed $50/unit of direct materials cost and $90/hour of direct labor. What would be the total manufacturing cost for Job2121 approximately? O a. None of the given answers. O b. $14,840 O c. $11,340 O d. $11,600 е. $6,740 E PAGE NEXT PAGE Z TWO Jump to... COURSE OUTLINE SPRING2021 ► O
analysis using activity-based costing (ABC). The management accountant accumulates the following information about overhead for the year ended December 31, 2019. Activity Cost Pools Cost Drivers Estimated Expected Use of Overhead Cost Drivers Purchasing Number of $1,200,000 40,000 orders Machine setups Number of 900,000 18,000 setups Machine hours Machining Quality Control 4,800,000 700,000 120,000 28,000 Number of inspections The cost drivers used: Cost Drivers TRI-X Product Purchase orders Machine setupS Machine hours Inspections 17,000 5,000 75,000 11,000 Required: 1. Calculate the activity rates for each of the overhead items using the four cost drivers. 2. Using the rates in (1) determine the unit cost for TRI-X 3. Calculate the gross profit of each model of TRI-X based on ABC costings and recommend whether or not TRI-X should be discontinued.
Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54.,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or (1.5 hours x (54,000 + 10,200)). Estimated annual manufacturing overhead is $ 1,585,316. Thus, the predetermined overhead rate is $ 16.46 or (S 1,585,316 - 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…