ACCTG322 Chapter Notes - Chapter 3: Infor, Finished Good

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG322

Professor

Trish Stringer

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Document Summary

Problem 3-22: research & documents predetermined overhead rate: Note: keep in mind that when you are preparing financial information you will not have the ac- tual numbers until after the period/year is complete. When doing problems in accounting you are given all the information up front. Please ignore the actual numbers when doing calculations based on applied overhead. Overhead rate estimated total amount of the allocation base. Applied manufacturing overhead costs: actual manufacturing overhead costs: Manufacturing overhead applied to work in process Cost of goods sold : cost of goods sold: ,700 140% = ,180 price to customer: direct materials Total manufacturing cost : the amount of overhead cost in work in process was: The amount of direct materials cost in work in process was: The completed schedule of costs in work in process was: Problem 3-27: the predetermined overhead rate was: Predetermined= overhead rate estimated total amount of the allocation base. = per computer hour: actual manufacturing overhead cost

Related Questions

Data
Allocation base
Estimated manufacturing overhead cost	$300,000
Estimated total amount of the allocation base	75,000	Machine-hours
Actual manufacturing overhead cost	$290,000
Actual total amount of the allocation base	68,000	Machine-hours
Enter a formula into each of the cells marked with a ?below
Computation of the predetermined overheadrate
Estimated manufacturing overhead cost
Estimated total amount of the allocation base	?	machine-hours
Predetermined overhead rate	?	per machine-hour
Computation of underapplied or overappliedmanufacturing overhead
Actual manufacturing overhead cost	?
Manufacturing overhead cost applied to Work in Process duringthe year:
Predetermined overhead rate	?	per machine hour
Actual total amount of the allocation base	?	machine-hours
Manufacturing overhead applied	?
Underapplied (overapplied) manufacturing overhead	?

byzantiumelk259

I need the solution for problem 22 in Chapter for in ManagerialAccounting for Managers 3rd edition Noreen, Brewer, and Garrison.Showing all steps

Problem 4-22 Multiple Departments; Overhead Rates; Underappliedor Overapplied Overhead

Winkle, Kotter, and Zale is a small law firm that contains 10partners and 10 support persons. The firm employs a job-ordercosting system to accumulate cost chargeable to each client, and itorganized into two departments the Research and DocumentsDepartment and the Litigation Department. The firm usespredetermined overhead rates to charge the costs of thesedepartments to its clients. At the beginning of the current year,the firm's management made the following estimates for theyear:

	Department
		Research and Documents	Litigation
Research hours		20,000	---------
Direct attorney hour		9,000	16,000
Materials and supplies		18,000	5,000
Direct Attorney cost		430,000	800,000
Departmental overhead cost		700,000	320,000

The predetermined overhead rate in the Research and DocumentsDepartment is based on research hours and the rate in theLitigation Department is based o direct attorney cost. The costscharged to each client are made up of three elements: materials andsupplies used, direct attorney costs incurred, and an appliedamount of overhead from each department in which work is performedo the case. Case 618-3 was initiated on February 10 and completedon June 30. During this period, the following costs and time wererecorded on the case:

	Department
		Research and Documents	Litigation
Research hours		18	---------
Direct attorney hours		9	42
Materials and Supplies		$50	$30
Direct attorney cost		$410	$2,100

Required:

1. Compute the predetermined overhead rates used during the yearin the Research and Documents Department and the LitigationDepartment

2. Using the rates you computed in (1) above, compute the totaloverhead cost applied to Case 618-3? Show computations bydepartment and in total for the case.

3. What would be the total cost chaged to Case-618-3? Showcomputations by department and in total for the case.

4. At the end of the year, the firm's records revealed thefollowing actual cost and operating data for all cases handledduring this year:

	Department
		Research and Documents	Litigation
Research hours		23,000	--------
Direct attorney hours		8,000	15,000
Materials and supplies		$19,000	$6,000
Direct attorney cost		$400,000$	$275,000
Departmental overhead cost		$770,000	$300,000

Determine the amount of underapplied or overapplied overheadcost in each department for the year.

beigeporpoise172

Downloadthe Applying Excel form and enter formulas in all cells thatcontain question marks.

For example, in cell B13 enter the formula "= B5".

After entering formulas in all of the cells that containedquestion marks, verify that the dollar amounts match the example inthe text.

Check your worksheet by changing the estimated total amount ofthe allocation base in the Data area to 50,000 machine-hours,keeping all of the other data the same as in the original example.If your worksheet is operating properly, the predetermined overheadrate should now be $6.00 per machine-hour. If you do not get thisanswer, find the errors in your worksheet and correct them.

Chapter 3: Applying Excel

Data

Allocation base

Machine-hours

Estimated manufacturing overhead cost

$300,000

Estimated total amount of the allocationbase

75,000

machine-hours

Actual manufacturing overhead cost

$290,000

Actual total amount of the allocationbase