Exam 4: Job Costing

Use the information below to answer the following question(s).The following data were taken from the records of Big Sky Ltd., a manufacturing company.The company has been calculating the actual indirect cost allocation rate using direct labour hours as the allocation base. -What is the actual indirect cost rate at Big Sky Ltd.using direct labour hours as the allocation base?

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system. A)labour time card B)job-cost record C)materials requisition record D)purchase invoice E)sales invoice F)labour time card -direct materials used

Use the information below to answer the following question(s).World Engines Ltd.manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 787 are as follows: -What is the total manufacturing cost of Job 787 using actual costing?

What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 are sent to the manufacturing plant floor?

Use the information below to answer the following question(s).World Engines Ltd.manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 787 are as follows: -What is the total manufacturing cost of Job 787 using normal costing?

A local engineering firm is bidding on a design project for a new client.The total budgeted direct labour costs for the firm are $800,000.The total budgeted indirect costs are $1,200,000.It is estimated that there are 16,000 billable hours in total.Required: a.What is the budgeted direct labour cost rate? b.What is the budgeted indirect cost allocation rate assuming direct labour cost is the cost allocation base? c.What should be the engineering firm bid on the project if the direct labour hours are estimated at 500 hours?

In a job-costing system, explain why it is necessary to apply indirect costs to production through the use of a budgeted indirect-cost rate.

Camden Company gathered the following information for the year ended December 31: Clyde Company uses a job costing system.What is the indirect cost allocation rate for the year be using direct labour hours as the allocation base?

Use the information below to answer the following question(s).A dental office is in the process of changing their costing system.Their system currently uses a single direct cost pool (professional labour)and a single indirect cost pool (staff support).The direct categories in the new, refined costing system include: 1.Professional partner labour.Average total annual compensation of the two partners is $100,000; and, each partner has 2,000 hours of budgeted billable time.2.Dental assistant labour.Average total annual compensation of the four assistants is $22,500 each, and each assistant has 2,000 hours of budgeted billable time.3.Office staff.Average total annual compensation of the two staff members is $15,000 each, and each has 2,000 hours of budgeted billable time.The indirect category in the new refined costing system includes professional liability insurance.The budgeted indirect amount is $200,000, and the allocation base is budgeted professional labour hours.The dentist and dental assistants are considered professional labour hours. -What is the budgeted direct cost rate per hour for office staff?

Cost tracing is a specific term for assigning indirect costs.

A wholesale automobile company that buys and resells cars has the following data for June: Required: a.Compute the costing rates for each cost driver using actual costing. b.Calculate the total cost assigned to the each vehicle sold.

A grouping of individual cost items is called a

Answer the following question(s)using the information below.Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $15 per direct labour hour.The following data are obtained from the accounting records for June in the current year: -For June, manufacturing overhead was

Cowley County Hospital uses a job-costing system for all patients who have surgery.In March, the Pre-Operating Room (PRE-OP)and Operating Room (OR)had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively.The budgeted nursing overhead costs for each department for the month were $168,000 and $132,000, respectively.The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month.For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms.He was in the hospital for 4 days (96 hours).Other costs related to Adams were: The hospital uses a budgeted overhead rate for applying overhead to patient stays.Required: What is the total cost of the stay of patient Fred Adams?

The difference between actual costing and normal costing is

Sedgewick County Hospital uses a job-costing system for all patients.In June, the nursing care charges for each department and the cost allocation bases of nursing days are as follows: Patient Ms.Graves spent six days in Critical Care and eight days in Special Care during June.The remainder of the 30-day month was spent in the General Care area.Required: a.Determine the budgeted overhead rate for each department. b.What are the total charges to Ms.Graves if she was in the facility the entire month?

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system. A)labour time card B)job-cost record C)materials requisition record D)purchase invoice E)sales invoice F)labour time card -cost of goods sold

Managers and accountants collect most of the cost information that goes into their information systems through

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system. A)labour time card B)job-cost record C)materials requisition record D)purchase invoice E)sales invoice F)labour time card -finished goods control

What is the difference between an actual cost system and a normal cost system?