GR Question 1 : The main reason is that the managers would like to know how the system is doing at a point

in time before the end of the out how well they are performing. In addition, seasonal factors and fluctuations are going to throw off the overhead rates predetermined overhead rates, they are helping to simplify the process of record keeping.

Question 2 : Manufacturing Overhead would FiberCom have applied to Jobs through November 30 of the year compele (Budgeted) Annual Rate per Machine Hours Total Machine Hours ( As of November 30th) Total Manufacturing Overhead Applied $15 73,000 1,095,000

Question 3 :Manufacturing Overhead whould have been applied to jobs during December of the year completed (Budgeted) Annual Rate per Machine Hours Total Machine Hours (December) Total Manufacturing Overhead Applied $15 6,000 90,000

Question 4 : Amount by which manufactruing overhead is overapplied or underapplied as of December 31 of the year ju Total Actual Overhead cost for the year Total Actual Machine Hours for the year (Budgeted) Annual Rate per Machine Hours Total Manufacturing Overhead Applied Overhead Underapplied $ 1,196,000 79,000 $15 $ $ 1,185,000 11,000

Question 5 : Balance in the Finished Goods Inventory Account on December 31 of the year Just completed Job No N11 - 013 Balance November 30 Direct Matarial (December ) Direct Labour (December) Overhead Applied (1000 Machine Hours* $15) Balance Finish Good Inventory Total Cost

$ $ $ $ $

55,000 4,000 12,000 15,000 86,000

Question 6 : Schedule Of Cost of Good Manufactured for FiberCom Inc for the year just completed Direct Material

Raw Material Inventory ( Beginning of Year Jan1 ) Add: Raw Material Purchase for the year Raw Material Ready for Use Deduct : Available Inventory as of 31 Dec Actual Raw Material Used deduct : indirect material

$ $ $ $

105,000 1,063,000 1,168,000 85,000 $ 134000 $ 949,000 925,000.0 1,083,000

Direct Labour Manufacturing Overhead Indirect Labour indirect material Utilities Depreciation Total Actual Manufacturing Overhead Deduct: UnderApplied Overhead Cost Total Overhead Applied Total Manufacturing Cost Add: Work in Process at January 1 Subtotal Deduct : Work in process at Dec 31 D12 -002 D12 -003 Total Cost of Good Manufactured $ 60,000

$ $ $ $ $ $

375,000 134,000 267,000 420,000 1,196,000 11,000 $ $ 1,185,000 3,059,000

3,119,000

$ $ $

95,400 54,800 150,200

2,968,800

GROUP ASSIGNMENT ( Chapter 3, Case 3-62)

point in time before the end of the current accounting period in order to be able to figure ing to throw off the overhead rates if actual overhead rates are used often. Finally, by using ing.

November 30 of the year compeleted

mber of the year completed

ed as of December 31 of the year just completed

year Just completed

st completed