Exam 4: Job Costing and Overhead Costing Systems

If James Ingram is a labour intensive company,and more overhead costs are caused by increasingly complex products that require more senior labour staff,what overhead driver would you suggest?

Companies that manufacture products such as custom-designed decks and pools would most likely use which type of costing?

Cost allocation:

An allocation base that causes overhead costs to be incurred is called a(n):

Which of the following would probably not be a cost driver in a manufacturing environment?

What is the purpose of a job cost report and what are some of the items that should be found on one?

George Wilson is an assembly-line worker for Gantt Manufacturing.Gantt pays its employees weekly.The following is a breakdown of all the labour costs traced to George for the previous week: Regular pay: 40 hours at \ 12 per hour Overthme pay: 5 hours at \ 18 per hour Fringe benefits received: \ 50 per week Last week,George spent the entire 45 hours he worked on a special order 'rush' job for a particular customer.The overtime was necessary in order to complete the job from start to finish within one week.Assuming that George was the only employee who worked directly on this job,how much direct labour cost should be assigned to the job?

What does it mean when overhead is over- or underapplied to a job? What costs are affected by this and what are the two different ways to adjust for the over- or underapplied amounts to jobs?

The accumulating,tracking,and assigning of production costs to the goods and services produced is called a:

Which of the following types of companies would probably not use job order costing?

Explain the term 'cost driver' and give several examples.

Which of the following costs is the most likely to be allocated to a product in a traditional job costing environment?

Rolling Hills Construction Rolling Hills Construction Co. assigns overhead to specific jobs based on direct labour cost (dollars). The following information is available for the month of June: Estimated direct labour hours 2000 hours Estimated direct labour cost per hour \ 12/ hour Estimated overhead costs \ 3000 Actual direct labour hours 2300 hours Actual direct labour cost per hour \ 13 hour Actual overhead costs \ 3300 -The amount of overhead applied for June is:

What should determine whether an allocation base is a good cost driver?

Why do companies develop estimates for overhead costs in job costing? How are estimates developed?

Samantha's Sundries Inc.assigns overhead to specific jobs based on machine hours.At the beginning of the current year,estimated overhead costs were $400 000 and estimated machine hours were 25 000.By the end of the year,actual overhead costs were calculated to be $375 000 and actual machine hours were 30 000.One of the jobs worked on during the year was Job #44 which used 10 machine hours. How much overhead was applied to Job #44?

Stacey Quilts manufactures high value,custom-made quilts.The company assigns overhead to specific jobs based on direct labour costs.At the beginning of the current year,estimated overhead costs were $2 500 000 and estimated DL costs was 2 000 000.By the end of the year,actual overhead costs were calculated to be $1 900 000 and actual DL costs was 1 800 000. Required: A. Calculate the predetermined overhead rate. B. How much overhead would be applied to a particular job that required $\$ 250$ in DL costs? C. How much total overhead was applied during the year? D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Samantha's Sundries Inc.assigns overhead to specific jobs based on machine hours.At the beginning of the current year,estimated overhead costs were $400 000 and estimated machine hours were 25 000.By the end of the year,actual overhead costs were calculated to be $375 000 and actual machine hours were 30 000. By how much was overhead under- or overapplied for the year?

Greenlaw Products uses job order costing and applies overhead to products using direct labour hours.Greenlaw has determined that their predetermined overhead is $4.00 per direct labour hour when an estimated 200 000 direct labour hours are incurred. During 2009 Greenlaw actually incurred a total of 215 000 direct labour hours and actual overhead costs ended up being $900 000. Greenlaw has no ending work-in-process or finished goods inventories. Required: A. What were Greenlaw's estimated total overhead costs for the year? B. By how much was overhead over or under-applied? C. Assuming that cost of goods sold was $\$ 3000000$ prior to the adjustment for over- or underapplied overhead, what will be the cost of goods sold amount after the year-end adjustment?

Refer to the James Ingram information below. James Ingram assigns overhead to jobs based on direct labour hours. At the beginning of the current year, estimated overhead costs were $300 000 and estimated direct labour hours were 50 000, while estimated machine hours were 60 000. During the year, 500 direct labour hours and 400 machine hours were used on Job #99. By the end of the year, actual overhead costs were calculated to be $218 000. Actual direct labour hours was 39 000 while actual machine hours was 48 000. -What is the over/under application for the year,if direct labour hours is the overhead cost driver?