Chapter 17: Q17-4RQ (page 937)
Question: What is the purpose of a job cost record?
Answer:
A job cost record is a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual job and allows the company to track the cost of individual jobs.
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Question: The following information pertains to Smith Company for the year:
Estimated manufacturing overhead | \(500,000 | Actual manufacturing overhead | \)550,000 |
Estimated direct labor hours | 10,000 hours | Actual direct labor hours | 10,500 hours |
13. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base.
14. Determine the amount of overhead allocated during the year. Record the journal entry.
15. Determine the amount of underallocated or overallocated overhead. Record the journal entry to adjust Manufacturing
Overhead.
Root Trailers’ job cost records yielded the following information:
Use the dates in the table to identify the status of each job. Compute the following
balances for Root:
a. Work-in-Process Inventory at July 31
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
g. A cell phone manufacturer
How is the predetermined overhead allocation rate used by service companies?
Selected cost data for Classic Print Co. are as follows:
Estimated manufacturing overhead cost for the year | $125,000 |
Estimated direct labor cost for the year | 78,125 |
Actual manufacturing overhead cost for the year | 116,000 |
Actual direct labor cost for the year | 67,000 |
Requirements
1. Compute the predetermined overhead allocation rate per direct labor dollar.
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