The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $240,000. Each department's overhead consists primarily of depreciation and other machine-related expenses.
Selected budgeted and actual data from the St. Falls plant for the past year are as follows: Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 162,000 $ 546,000 Actual department overhead 170,000 564,000 Expected activity: Direct labor hours 54,000 15,000 Machine-hours 12,000 52,000 Actual activity: Direct labor hours 55,500 14,000 Machine-hours 12,700 54,000 For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining to job no. 110 are as follows: Direct materials $ 21,000 Direct labor cost: Department A (2,400 hr) 36,000 Department B (800 hr) 10,800 Machine-hours projected: Department A 160 Department B 1,200 Units produced 11,000 Book Links (6)references
1. value: 25.00 points Comprehensive Problem 5 Part a a.1 Assume the St. Falls plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Find the overhead rate by using expected direct labor hours. (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.) Overhead rate $ per direct labor hour a.2 Determine the projected amount of total manufacturing costs per unit for the units in job no. 110.(Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.) Manufacturing costs for Job 110 $ per unit check my workreferences
2. value: 25.00 points Comprehensive Problem 5 Part b b.1 Calculate plantwide overhead rate using Machine Hours on projected manufacturing costs for job no. 110. (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.) Plantwide overhead rate $ per machine hour b.2 Calculate two separate department overhead rates using Machine Hours on projected manufacturing costs for job no. 110. (Round your answers to 1 decimal place.Omit the "tiny_mce_markerquot; sign in your response.) Overhead rate-Department A $ per machine hour Overhead rate-Department B $ per machine hour b.3 Recalculate the projected manufacturing costs for job no. 110 using three separate rates: one rate for plantwide overhead and two separate department overhead rates, all based on machine-hours. (Round your intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.) Total cost $ per unit check my workreferences Worksheet Comprehensive Problem 5 Part b Difficulty: Hard 3. value: 25.00 points Comprehensive Problem 5 Part c c.1 The sales policy at St. Falls dictates that job bids be calculated by adding 22 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 dollar amount. Omit the "tiny_mce_markerquot; sign in your response.) Bid price $ c.2 The sales policy at St. Falls dictates that job bids be calculated by adding 22 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b ?(Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.) Bid price $ c.3 Which of the overhead allocation methods would you recommend ? Overhead rate by direct labor hours Overhead rate by machine Hours Comprehensive Problem 5 Part d d. Using the allocation rates in part b, compute the under- or overapplied overhead for the St. Falls plant for the year. (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.) $