P4-4 P4-5 P4-10 Week 4 Assignment
P 4-4 Listed below are the
budgeted factory overhead costs for 2011 for Muncie Manufacturing, Inc.., at
the projected level of 2,000 units:
EXPENSES:
indirect
materials...............................................$ 10,000
Indirect labor......................................................
20,000
Power................................................................
15,000
Straight-line
depreciation..................................... 30,000
Factory property
Tax........................................... 28,000
Factory
Insurance............................................... 12,000
Total....................................................................$115,000
Required:
Prepare flexible budgets for
factory overhead at the 1,000, 2,000, and 4,000 unit levels. (Hint: You must
first decide which of the listed costs should be considered variable and which
should be fixed.)
P4-5 Cake Products Inc, is
divided into five departments, mixing, blending, finishing, factory office and
building maintenance. The first three departments are engaged in production
work. Factory Office and Building Maintenance are service departments. During
the month of June, the following factory overhead was incurred for the various
departments:
mixing $21,000
factory office $9,000
Blending $18,000
building maintenance $6,400
finishing $25,000
Building maintenance - on the
basis of floor space occupied by the other departments as follows: mixing
10,000 sqft, blending $4,500 sqft, finishing 10,500 sqft and factory office
7,000 sq ft.
Factory office - on the basis of
number of employees as follows : mixing 30, blending 20 and finishing 50 Prepare
schedules showing the distribution of the service departments expenses for the
following:
1. The direct distribution
method
2. The sequential distribution
method in the order of number of other departments served.
P4-10
Con-Aggie
Manufacturing Company is studying the results of applying factory overhead to production.
The following data have been used: estimated factory overhead: $60,000;
estimated materials costs, $50,000; estimated direct labor costs $60,000;
estimated direct labor hours 10,000; estimated machine hours 20,000; work in
process at the beginning of the month, none.
The actual factory overhead incurred for the
month of November was $75,000, and the production statistics on November 30 are
as follows:
|
Job
|
Materials Cost
|
Direct Labor Costs
|
Direct Labor Hours
|
Machine Hours
|
Date Jobs Completed
|
|
101
|
5,000
|
6,000
|
1000
|
3,000
|
10-Nov
|
|
102
|
7,000
|
12,000
|
2,000
|
3,200
|
14-Nov
|
|
103
|
8,000
|
13,500
|
2,500
|
4,000
|
20-Nov
|
|
104
|
9,000
|
15,600
|
2,600
|
3,400
|
Inprocess
|
|
105
|
10,000
|
29,000
|
4,500
|
6,500
|
26-Nov
|
|
106
|
11,000
|
2,400
|
400
|
1,500
|
In process
|
|
Total
|
50,000
|
78,500
|
13,000
|
21,600
|
|
Required:
1. Compute the predetermined
rate, based on the following: a. direct labor cost, b. direct labor hours, c.
machine hours.
2. Using each of the methods,
compute the estimated total cost of each job at the end of the month.
3. Determine the under- or
overapplied factory overhead, in total, at the end of the month under each of
the methods.
4. Which method would you
recommend, and why?
TUTORIAL PREVIEW
|
Problem 4-4
|
||||
|
|
|
Units
|
||
|
|
|
1,000
|
2,000
|
4,000
|
|
Expenses
|
|
|
|
|
|
Variable:
|
|
|
|
|
|
Indirect materials
|
5,000
|
10,000
|
20,000
|
|
|
Indirect labor
|
10,000
|
20,000
|
40,000
|
|
|
Power
|
7,500
|
15,000
|
30,000
|
|
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