Molding Fabrication

Machine-hours 20,000.00 30,000.00

Fixed manufacturing overhead cost $ 700,000.00 $ 210,000.00
Variable manufacturing overhead cost per machine hour $ 3.00 $ 1.00

Job D-70 Molding Fabrication

Direct Material Costs $ 375,000.00 $ 325,000.00
Direct Labor Cost $ 200,000.00 $ 160,000.00
Machine-hours 14,000.00 6,000.00

Job C-200 Molding Fabrication

Direct Material Costs $ 300,000.00 $ 250,000.00
Direct Labor Cost $ 175,000.00 $ 225,000.00
Machine-hours 6,000.00 24,000.00

1a) Departmental predetermined overhead rates

Y= a+ bX
Molding Fabrication
Fixed Manufacturng Overhead $ 35.00 $ 7.00
Variable Maunfacturing Overhead $ 3.00 $ 1.00
Predetermined Overhead Rate (per machine hour) $ 38.00 $ 8.00

Molding Fabrication
Estimated fixed Manufacturing Overhead $ 700,000.00 $ 210,000.00
Estimated Variable Manufacturing Overhead 60,000.00 30,000.00
Estimated total Manufacturing overhead Cost $ 760,000.00 $ 240,000.00

Predetermined overhead= Estimated total manufacturing overhead cost

Estimated total amount of the allocation base

Molding Fabrication
= $ 760,000.00 $ 240,000.00
20,000.00 30,000.00
= $ 38.00 $ 8.00

1.b)Total Manufacturing Cost Assigned to Job D-70 and Job C-200

Job D-70 Molding Fabrication
Direct Material Costs $ 375,000.00 $ 325,000.00
Direct Labor Cost $ 200,000.00 $ 160,000.00
Manufacturing Overhead Applied $ 532,000.00 $ 48,000.00
Total Manufacturing Cost (Job D-70) $ 1,107,000.00 $ 533,000.00
 Job C-200 Molding Fabrication
Direct Material Costs $ 300,000.00 $ 250,000.00
Direct Labor Cost $ 175,000.00 $ 225,000.00
Manufacturing Overhead Applied $ 228,000.00 $ 192,000.00
Total Manufacturing Cost (Job C-200) $ 703,000.00 $ 667,000.00

1.c) Bid Price for Job D-70 and Job C-200

Wh
Marked up percentage 150%
Job D-70 $ 2,460,000.00
Job C-200 $ 2,055,000.00

1.d) Cost of Good Sold for the year:

Total Manufacturing Cost (Job D-70) $ 1,640,000.00
Total Manufacturing Cost (Job C-200) $ 1,370,000.00
Total Cost of Good Sold for the year $ 3,010,000.00

2.a) Plantwide predetermined Overhead rate

Y= a+ bX
Molding Fabrication
Estimated fixed Manufacturing Overhead $ 700,000.00 $ 210,000.00
Estimated Variable Manufacturing Overhead 60,000.00 30,000.00
Estimated total Manufacturing overhead Cost $ 760,000.00 $ 240,000.00

Predetermined overhead= Estimated total manufacturing overhead cost

Estimated total amount of the allocation base

= $ 1,000,000.00
50,000.00

= $ 20.00 per machine hour

2.b)Total Manufacturing Cost Assigned to Job D-70 and Job C-200 (Plantwide)

Job D-70 Molding Fabrication

Direct Material Costs $ 375,000.00 $ 325,000.00
Direct Labor Cost $ 200,000.00 $ 160,000.00
Manufacturing Overhead Applied $ 280,000.00 $ 120,000.00
Total Manufacturing Cost (Job D-70) $ 855,000.00 $ 605,000.00

Job C-200 Molding Fabrication

Direct Material Costs $ 300,000.00 $ 250,000.00
Direct Labor Cost $ 175,000.00 $ 225,000.00
Manufacturing Overhead Applied $ 120,000.00 $ 480,000.00
Total Manufacturing Cost (Job C-200) $ 595,000.00 $ 955,000.00

2.c) Bid Price for Job D-70 and Job C-200

150%
Job D-70 $ 2,190,000.00
Job C-200 $ 2,325,000.00

2.d) Cost of Good Sold for the year:

Total Manufacturing Cost (Job D-70) $ 1,460,000.00
Total Manufacturing Cost (Job C-200) $ 1,550,000.00
Total Cost of Good Sold for the year $ 3,010,000.00

3.)
 Total
50,000.00
$ 910,000.00

Total
$ 700,000.00
$ 360,000.00
20,000.00

Total
$ 550,000.00
$ 400,000.00
30,000.00

per machine hour

facturing overhead cost

nt of the allocation base

per machine hour

Total
$ 700,000.00
$ 360,000.00
$ 580,000.00
$ 1,640,000.00
 Total
$ 550,000.00
$ 400,000.00
$ 420,000.00
$ 1,370,000.00

2485
1863.75

facturing overhead cost

nt of the allocation base

machine hour

Total
$ 700,000.00
$ 360,000.00
$ 400,000.00
$ 1,460,000.00

Total
$ 550,000.00
$ 400,000.00
$ 600,000.00
$ 1,550,000.00
EXERCISE 2-1 Compute a Predetermined Overhead Rate
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At t
estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The com
fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct
manufacturing overhead cost for the year was $123,900 and it actual total direct labor was 21,000 hours.

Required:
Compute the company's plantwide predetermined overhead rate for the year

Y= a+ bX
(a) Total fixed Manufacturing Overhead
Cost= $ 94,000.00
(b) Estimated variable manufacturing
overhead cost per unit = $ 2.00 per direct labor-hr
(X) Estimated total amount of the allocation
base= 20,000 direct labor hours

Y= a+ bX Y = $94,000 + ($2.00 per direct labor hour x 20,000 direct labor hours)
Estimated total
manufacturing overhead
cost $ 134,000.00

Predetermined overhead= Estimated total manufacturing overhead cost

Estimated total amount of the allocation base

= $ 134,000.00
20,000 direct labor hours

= $ 6.70 per direct labor-hour

 e basis of direct labor-hours. At the beginning of the year, it
ated level of production. The company also estimated $94,000
ring overhead of $2.00 per direct labor-hour. Harris's actual
bor was 21,000 hours.

ect labor hours)

Given:
(a)
(b) Total fixed variable
Estimated Manufacturing Overhead
manufacturing Cost=
overhead $ 680,000.00
cost per unit = $ 0.50 per direct labor-hr
(X) Estimated total amount of the allocation
base= 80,000 direct labor hours
Actual Overhead Cost $ 692,000.00
Actial Total Direct Labot 83,000.00 hours

1.) Compute for the predetermined overhead rate

Y= a+ bX Y = $680,000 + ($.50 per direct labor hour x 80,000 direct

Estimated total manufacturing
overhead cost $ 720,000.00

Predetermined overhead= Estimated total manufacturing overhead cost

Estimated total amount of the allocation base

= $ 720,000.00
80,000 direct labor hours

= $ 9.00 per direct labor-hour

2) During the year, Tech Solutions started and completed the Xavier Company engagement.
was available with respect to this job:

Direct Materials $ 38,000.00

Direct Labor Cost $ 21,000.00
Direct Labor- hours worked 280.00

Compute for the total cost for the Xavier Company Engagement

Overhead Cost = Predetermined overhead rate x Actual direct labor-hours

$9.00 per DHL X 280 DLHs
$ 2,520.00

Total Cost = Direct Material + Direct Labor Cost + Overhead Cost

$38,000+ $21,000 + $2,520
$ 59,280.00
r direct labor-hr

ect labor hours

or hour x 80,000 direct labor hours)

erhead cost
cation base

Company engagement. The ff information

tual direct labor-hours

t + Overhead Cost
 Molding
Machine-hours 23,000.00
Fixed manufacturing overhead cost $ 790,000.00
Variable manufacturing overhead cost per machine hour $ 5.60

Job D-70 Molding

Direct Material Costs $ 371,000.00
Direct Labor Cost $ 240,000.00
Machine-hours 16,000.00

Job C-200 Molding

Direct Material Costs $ 290,000.00
Direct Labor Cost $ 100,000.00
Machine-hours 7,000.00

Delph Company uses a job order costing system and has two manufacturing departments- Mol

$ 39.95
1a) Departmental predetermined overhead rates
Y= a+ bX
Molding
Estimated fixed Manufacturing Overhead $ 790,000.00
Estimated Variable Manufacturing Overhead 128,800.00
Estimated total Manufacturing overhead Cost $ 918,800.00

Predetermined overhead= Estimated total manufacturing ov

Estimated total amount of the allo

= $ 1,303,600.00
56,000.00

= 23.28

1b) Total Manufacturing Cost assigned to Job D-70 and Job C-200

Job D-70 Molding

Direct Material Costs $ 371,000.00
Direct Labor Cost $ 240,000.00
Manufacturing Overhead Applied $ 372,480.00
Total Manufacturing Cost (Job D-70) $ 983,480.00

Job C-200 Molding

Direct Material Costs $ 290,000.00
Direct Labor Cost $ 100,000.00
Manufacturing Overhead Applied $ 162,960.00
Total Manufacturing Cost (Job C-200) $ 552,960.00

1.c) Bid Price for Job D-70 and Job C-200

Marked up percentage 150%
Job D-70 $ 2,451,660.00
Job C-200 $ 2,412,360.00

1.d) Cost of Good Sold for the year:

Total Manufacturing Cost (Job D-70) $ 1,634,440.00
Total Manufacturing Cost (Job C-200) $ 1,608,240.00
Total Cost of Good Sold for the year $ 3,242,680.00

2.a) Plantwide predetermined Overhead rate

 Fabrication Total
33,000.00 56,000.00
$ 200,000.00 $ 990,000.00
$ 5.60

Fabrication Total
$ 328,000.00 $ 699,000.00
$ 160,000.00 $ 400,000.00
7,000.00 23,000.00

Fabrication Total
$ 210,000.00 $ 500,000.00
$ 240,000.00 $ 340,000.00
26,000.00 33,000.00

cturing departments- Molding and Fabrication. The company provided the following estimated at the beginning of the year

Fabrication
$ 200,000.00
184,800.00
$ 384,800.00

ed total manufacturing overhead cost

ed total amount of the allocation base

Fabrication Total
$ 328,000.00 $ 699,000.00 $ 1,199,000.00
$ 160,000.00 $ 400,000.00 $ 740,000.00
$ 162,960.00 $ 535,440.00 1,303,680.00
$ 650,960.00 $ 1,634,440.00

Fabrication Total
$ 210,000.00 $ 500,000.00
$ 240,000.00 $ 340,000.00
$ 605,280.00 $ 768,240.00
$ 1,055,280.00 $ 1,608,240.00
ginning of the year
What ma
 Molding
Machine-hours 20,000.00
Fixed manufacturing overhead cost $ 700,000.00
Variable manufacturing overhead cost per machine hour $ 3.00

Job D-70 Molding

Direct Material Costs $ 375,000.00
Direct Labor Cost $ 200,000.00
Machine-hours 14,000.00

Job C-200 Molding

Direct Material Costs $ 300,000.00
Direct Labor Cost $ 175,000.00
Machine-hours 6,000.00
=

Delph Company uses a job order costing system and has two manufacturing departments- Mol

1a) Departmental predetermined overhead rates

Molding department
Fixed Manufacturng Overhead $ 35.00
Variable Maunfacturing Overhead $ 3.00
Predetermined Overhead Rate $ 38.00

Fabrication Department
Fixed Manufacturng Overhead $ 7.00
Variable Maunfacturing Overhead $ 1.00
Predetermined Overhead Rate $ 8.00

Molding department $ 38.00

Fabrication Department $ 8.00

1b) Total Manufacturing Cost assigned to Job D-70 and Job C-200

Job D-70 Molding

Direct Material Costs $ 375,000.00
Direct Labor Cost $ 200,000.00
Manufacturing Overhead Applied $ 532,000.00
Total Manufacturing Cost (Job D-70) $ 1,107,000.00

Job C-200 Molding

Direct Material Costs $ 300,000.00
Direct Labor Cost $ 175,000.00
Manufacturing Overhead Applied $ 228,000.00
Total Manufacturing Cost (Job C-200) $ 703,000.00

Total Manufacturing Cost

Job D-70 $ 1,640,000.00
Job C-200 $ 1,370,000.00

1.c) Bid Price for Job D-70 and Job C-200

Marked up percentage 150%
Job D-70 $ 2,460,000.00
Job C-200 $ 2,055,000.00

1.d) Cost of Good Sold for the year:

Total Manufacturing Cost (Job D-70) $ 1,640,000.00
Total Manufacturing Cost (Job C-200) $ 1,370,000.00
Total Cost of Good Sold for the year $ 3,010,000.00

2.a) Plantwide predetermined Overhead rate

 Fabrication Total
30,000.00 50,000.00
$ 210,000.00 $ 910,000.00
$ 1.00

Fabrication Total
$ 325,000.00 $ 700,000.00
$ 160,000.00 $ 360,000.00
6,000.00 20,000.00

Fabrication Total
$ 250,000.00 $ 550,000.00
$ 225,000.00 $ 400,000.00
24,000.00 30,000.00

acturing departments- Molding and Fabrication. The company provided the following estimated at the beginning of the year

per machine hour

$ -

per machine hour

$ -

Fabrication Total
$ 325,000.00 $ 700,000.00
$ 160,000.00 $ 360,000.00
$ 48,000.00 $ 580,000.00
$ 533,000.00 $ 1,640,000.00

Fabrication Total
$ 250,000.00 $ 550,000.00
$ 225,000.00 $ 400,000.00
$ 192,000.00 $ 420,000.00
$ 667,000.00 $ 1,370,000.00
he beginning of the year
 EQUIVALENT UNITS - WEIGHTED AV

Given:
WIP, Oct 1
WIP, Oct 31

Transferred

EQUIVALENT UNITS - WEIGHTED AVERAGE METHOD

Weighted-Average Method Equivalent Units
Materials Conversion
Units transferred to the next department 190,000 190,000
Ending work in process:
Materials: 15,000 units X 80% complete 12,000.00
Conversion : 15,000 units X 40% 6,000.00
202,000.00 196,000.00
ALENT UNITS - WEIGHTED AVERAGE METHOD

Percent Completed
Units Materials Conversion
30,000 65% 30%
15,000 80% 40%

190,000
 Baking Department
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory $ 3,570.00
Costs added to production during the period 43,120.00
Total cost to be accounted for $ 46,690.00

Costs accounted for as follows:

Cost of ending work in process inventory $ 2,860.00
Cost of units transferred out 43,830.00
Total cost to be accounted for $ 46,690.00

Cost of beginning work in process inventory + Costs added to production during the period =
Cost of ending WIP invetory + Cost of units transferred out