Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 25 Sep 2017 My Price 7.00

manufacturing overhead

Actual costing, normal costing, accounting for manufacturing overhead. Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labor costs. Destin provides the following information:

 

Budget for 2011

Actual Results for 2011

Direct material costs

$2,000,000

$1,900,000

Direct manufacturing labor costs

1,500,000

1,450,000

Manufacturing overhead costs

2,700,000

2,755,000

1. Compute the actual and budgeted manufacturing overhead rates for 2011.

2. During March, the job-cost record for Job 626 contained the following information:

Direct materials used

$40,000

Direct manufacturing labor costs

$30,000

Compute the cost of Job 626 using (a) actual costing and (b) normal costing.

3. At the end of 2011, compute the under- or over allocated manufacturing overhead under normal costing. Why is there no under- or over allocated overhead under actual costing?

Answers

(5)
Status NEW Posted 25 Sep 2017 03:09 PM My Price 7.00

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