In a job-order costing system manufacturing overhead applied is recorded as a debit to quizlet

The following cost data pertain to the operations of Ladwig Department Stores, Incorporated, for the month of December.

Corporate legal office salaries$ 68,000
Shoe Department cost of sales-Brentwood Store$ 66,000
Corporate headquarters building lease$ 86,000
Store manager's salary-Brentwood Store$ 10,000
Shoe Department sales commissions-Brentwood Store$ 5,000
Store utilities-Brentwood Store$ 11,000
Shoe Department manager's salary-Brentwood Store$ 3,000
Central warehouse lease cost$ 3,000
Janitorial costs-Brentwood Store$ 11,000

The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Shoe Department?

A partial listing of costs incurred at Archut Corporation during September appears below:

Direct materials$ 113,000
Utilities, factory$ 5,000
Administrative salaries$ 81,000
Indirect labor$ 25,000
Sales commissions$ 48,000
Depreciation of production equipment$ 20,000
Depreciation of administrative equipment$ 30,000
Direct labor$ 129,000
Advertising$ 135,000

The total of the product costs listed above for September is:

The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:

University Store, IncorporatedIncome StatementFor the Quarter Ended March 31Sales $ 800,000Cost of goods sold 560,000Gross margin 240,000Selling and administrative expenses: Selling$ 100,000 Administrative110,000210,000Net operating income $ 30,000

On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.

The contribution margin for the University Store for the first quarter is:

$140,000

Unit sales = $800,000 ÷ $40 per book = 20,000 books

Sales $ 800,000
Variable expenses:
Cost of goods sold$ 560,000
Variable selling ($3 per book × 20,000 books)60,000
Variable administrative (5% of $800,000)40,000
$ 660,000
Contribution margin $ 140,000

$3,595

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $155,000 + ($3.40 per machine-hour × 50,000 machine-hours) = $155,000 + $170,000 = $325,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $325,000 ÷ 50,000 machine-hours = $6.50 per machine-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $6.50 per machine-hour × 100 machine-hours = $650

Direct materials$ 645Direct labor2,300Manufacturing overhead applied650Total cost of Job A881$3,595

$10,510

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $279,000 + ($5.00 per direct labor-hour × 90,000 direct labor-hours) = $279,000 + $450,000 = $729,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $729,000 ÷ 90,000 direct labor-hours = $8.10 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $8.10 per direct labor-hour × 100 direct labor-hours = $810

Direct materials$ 700Direct labor9,000Manufacturing overhead applied810Total cost of Job P951$10,510

Explanation

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $259,200 + ($6.00 per direct labor-hour × 54,000 direct labor-hours) = $259,200 + $324,000 = $583,200
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $583,200 ÷ 54,000 direct labor-hours = $10.80 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $10.80 per direct labor-hour × 100 direct labor-hours = $1,080

Direct materials$ 640Direct labor5,400Manufacturing overhead applied1,080Total cost of Job P951$7,120

Total cost of Job P951 (a)$7,120Number of units (b)25Unit product cost (a) ÷ (b)$284.80

The following accounts are from last year's books at Sharp Manufacturing:

Raw MaterialsDebitCreditBalance0(b)155,800(a)168,500 12,700
Work In ProcessDebitCreditBalance0(f)517,200(b)132,900 (c)169,800 (e)214,500 0
Finished GoodsDebitCreditBalance0(g)469,000(f)517,200 48,200
Manufacturing OverheadDebitCredit(b)22,900(e)214,500(c)26,900 (d)157,800 6,900
Cost of Goods SoldDebitCredit(g)469,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

he following accounts are from last year's books of Sharp Manufacturing:

Raw MaterialsDebitCreditBalance0(b)154,200(a)164,500 10,300
Work In ProcessDebitCreditBalance0(f)510,800(b)132,100 (c)168,200 (e)210,500 0
Finished GoodsDebitCreditBalance0(g)461,000(f)510,800 49,800
Manufacturing OverheadDebitCredit(b)22,100(e)210,500(c)26,100 (d)156,200 6,100
Cost of Goods SoldDebitCredit(g)461,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

The following accounts are from last year's books at Sharp Manufacturing:

Raw MaterialsDebitCreditBalance0(b)155,400(a)167,500 12,100
Work In ProcessDebitCreditBalance0(f)515,600(b)132,700 (c)169,400 (e)213,500 0
Finished GoodsDebitCreditBalance0(g)467,000(f)515,600 48,600
Manufacturing OverheadDebitCredit(b)22,700(e)213,500(c)26,700 (d)157,400 6,700
Cost of Goods SoldDebitCredit(g)467,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

$5,340.65

Customer Margin-Activity-Based Costing Analysis Sales (1,500 units × $18.55 per unit) $ 27,825.00Costs: Direct materials ($8.35 per unit × 1,500 units)$ 12,525.00 Direct labor ($3.95 per unit × 1,500 units)5,925.00 Supporting assembly ($3.45 per DLH × 0.25 DLHs per unit × 1,500 units)1,293.75 Processing batches ($193.30 per batch × 5 batches)966.50 Processing orders ($83.05 per order × 2 orders)166.10 Servicing customers ($1,608.00 per customer × 1 customer)1,608.0022,484.35Customer margin $ 5,340.65

$3,450.90

Customer Margin-Activity-Based Costing Analysis Sales (1,100 units × $15.60 per unit) $ 17,160.00Costs: Direct materials ($7.85 per unit × 1,100 units)$ 8,635.00 Direct labor ($1.90 per unit × 1,100 units)2,090.00 Supporting assembly($6.55 per DLH × 0.10 DLHs per unit × 1,100 units)720.50 Processing batches ($138.20 per batch × 7 batches)967.40 Processing orders ($52.60 per order × 2 orders)105.20 Servicing customers ($1,191.00 per customer × 1 customer)1,191.0013,709.10Customer margin $ 3,450.90