Exam 4: Job Costing

Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2014: Direct materials \ 140,000 Direct labor (4,000 hours @ \ 10/ hour) 40,000 Indirect labor 13,000 Flant facility rent 30,000 Depreciation on plant machinery and equipment 22,500 Sales commissions 24,000 Administrative expenses 28,000 -For June 2014,manufacturing overhead is ________.

The Finished Goods Control account consists of actual manufacturing overhead costs rather than allocated manufacturing overhead costs.

The spreading of underallocated or overallocated overhead among ending work-in-process,finished goods,and cost of goods sold is called ________.

Actual costing helps managers get information earlier and take corrective measures to improve labor efficiency.

Venus Corp employs ten full-time professionals.The budgeted compensation per employee is $50,000.The maximum billable hours for each client are 500.Clients always receive their full amount of time.All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis.Any other costs are included in a single indirect-cost pool,allocated according to professional labor-hours.Budgeted indirect costs for the year are $250,000 and the firm had 30 clients. Required: a.What is the direct-labor-cost rate per hour? b.What is the indirect-cost rate per hour? c.What is the total cost incurred to the employer per hour? d.How will the total cost be affected if the firm loses out on 5 clients?

Kamrock applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour.A retail outlet has requested a bid on a special order of the Toy Mouse product.Estimates for this order include: Direct materials of $50,000; 600 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs.Manufacturing overhead cost estimates for this special order total ________.

Which of the following general ledger accounts will have a subsidiary ledger account?

The budgeted indirect-cost rate for each cost pool is computed as ________.

Answer the following questions using the information below: Wayland Manufacturing uses a normal cost system and had the following data available for 2010: Direct materials purchased on account \ 148,000 Direct materials requisitioned 82,000 Direct labor cost incurred 130,000 Factory overhead incurred 146,000 Cost of goods completed 292,000 Cost of goods sold 256,000 Beginning direct materials inventory 26,000 Beginning WIP inventory 64,000 Beginning finished goods inventory 58,000 Overhead application rate, as a percent of direct-labor costs 125 percent -The ending balance of work-in-process inventory is ________.

Describe job-costing and process-costing systems.Explain when it would be appropriate to use each.

In a costing system,________.

Using job costing in the shipping industry would be more appropriate than process costing.

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000). Ending balances in the relevant accounts are: Work-in-Process \ 10,000 Finished Goods 20,000 Cost of Goods Sold 170,000 -Under the writeoff approach,the difference between Manufacturing Overhead Control and Manufacturing Overhead Allocated is adjusted in the ________.

Fox Studios,the movie production house,uses process costing to estimate costs.

The adjusted allocation approach yields the benefits of ________.

Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2014: Direct materials \ 140,000 Direct labor (4,000 hours @ \ 10/ hour) 40,000 Indirect labor 13,000 Flant facility rent 30,000 Depreciation on plant machinery and equipment 22,500 Sales commissions 24,000 Administrative expenses 28,000 -The amount of manufacturing overhead allocated to all jobs during June 2014 totals ________.

Which account is debited if materials costing $100,000 are sold?

Answer the following questions using the information below: Pearl Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $50,000; 400 direct manufacturing labor-hours at $20 per hour; and a 30% markup rate on total manufacturing costs. -The bid price for this special order is ________.

Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $12 per direct labor-hour.The following data are obtained from the accounting records for June 2014: Direct materials \ 350,000 Direct labor (16,000 hours @ \ 11 hour) 176,000 Indirect labor 20,000 Plant facility rent 100,000 Depreciation on plant machinery and equipment 40,000 Sales commissions 50,000 Administrative expenses 60,000 Required: a.What actual amount of manufacturing overhead costs was incurred during June 2014? b.What amount of manufacturing overhead was allocated to all jobs during June 2014? c.For June 2014,was manufacturing overhead underallocated or overallocated? Explain.

A job-cost record uses information from ________.