ACC 406 : chap 6

ACC 406 : chap 6

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ACC 406 : chap 3

ACC 406 Chapter 2: CHapter 2

ACC 406 Study Guide - Fixed Cost, Cost Accounting, Standard Cost Accounting

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These notes are posted on blackboard to high light and complement certain aspects of the topic, facilitate those students who may have missed my lecture, balance traditional with internet based learning and overall enhance students learning. The notes are not meant to suggest what may be in the exams, replace coming to class, textbook studying and/or problem solving. Visual explanation: top down stucture bottom up costing. Third build in the same fashion (steps 1 and 2) the other costs of the other business functions: research and development. Second, repeat the same for the departments of machining and forging. The total cost to manufacture the product is the sum of costs in the three departments. First, calculate the cost of the activities in the assembly department: material handling, machine inserting, testing, packaging. Activity-based cost assignment consists of the following 3 steps: Identify and define activities using interviews and surveys, then build a list of.

Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departmentâs predetermined overhead rate is based on machine-hours and the Customizing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Machining		Customizing
Machine-hours		16,000		11,000
Direct labor-hours		2,000		6,000
Total fixed manufacturing overhead cost	$	104,000	$	56,400
Variable manufacturing overhead per machine-hour	$	2.10
Variable manufacturing overhead per direct labor-hour			$	3.30

During the current month the company started and finished Job T272. The following data were recorded for this job:

The predetermined overhead rate for the Machining Department is closest to:

Multiple Choice

$22.93 per machine-hour

$6.50 per machine-hour

$2.10 per machine-hour

$8.60 per machine-hour

fuchsiaguinea-pig575

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departmentâs predetermined overhead rate is based on machine-hours and the Customizing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Machining		Customizing
Machine-hours		17,000		15,000
Direct labor-hours		3,000		6,000
Total fixed manufacturing overhead cost	$	102,000	$	61,200
Variable manufacturing overhead per machine-hour	$	1.70
Variable manufacturing overhead per direct labor-hour			$	4.10

During the current month the company started and finished Job T268. The following data were recorded for this job:

Job T268:	Machining		Customizing
Machine-hours		80		30
Direct labor-hours		30		50
Direct materials	$	720	$	380
Direct labor cost	$	900	$	1,500

The total job cost for Job T268 is closest to:

pucecat409

2014 Budget

	Machining Department	Finishing Department
Manufacturing overheadcosts	$10,000,000		$8,217,000
Direct manufacturing laborcosts	$910,000		$4,150,000
Direct manufacturinglabor-hours	34,000		175,000
Machine-hours	200,000		33,000

What is the budgeted manufacturing overhead rate in themachiningâ department? In the finishingâdepartment?

During the month ofâ January, theâ job-cost record for Job 431shows theâ following:

	Machining Department		Finishing Department
Direct materials used		$15,000		$5,000
Direct manufacturing labor costs		$500		$1,400
Direct manufacturing labor-hours		50		70
Machine-hours		160		15

Compute the total manufacturing overhead cost allocated to Job431.

Assuming that Job431 consisted of 300 units ofâ product, what is the costperâ unit?

raspberrypug578

Customizing

Machine-hours

Direct labor-hours