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ID: 2518841 • Letter: M
Question
Mayflown- B????3Ul.. R w?????HUARAC- E sue. 1?????? w Maytiower Compact. ?4?????? ACCT& 203 Principles of Accounting Il Spring 2018 T1 (Plerce) zehul zheng& Homework: Module 4 Mid-Term Exam Score: 0 of 30 pts CP19-41 (similar to) Sav 5 of 10 (0 complete) Hw Score: 0%, 0 of 200 p Question Help costing system in which each batch manufactured is a different job. Philton Computer Company assigns direct materials and direct labor to esch job. The company assigns labor costs at $24 per hour. It allocates manufacturing rl n reae tredetarmined ovehesd alocation ratecomundes a percertege of dre labor costs. At the beginning of 2020, the controler prepared the following budget E (click the icon to view the budget ) In November 2020, Philton Computer Company worked on several jobs. Records for two jobs appear here EEl (Click the icon to view the records for the two jobs.) of direct Data Table Read the requirements $113,000 S 1,130,000 Direct labor costs Requirement 1. Compute Philton Computer Company's predetermined overhead (OH) alocation rate for 2020 Estimated direct labor costsEstimated direct labor hours -X Data Table Requirements Compute Philton Computer Company's predetermined overhead allocation rate for 2020 Compute the total cost of each job. Why does Philton assign costs to jobs? 1. Job 721 Job 722 Direct labor hours 840 hours 100 hours 2. 3. Direct materials 22,800 5 1,900 heck Answer phiais wheatley (11.dock phills wheatley docxExplanation / Answer
1. Computation of Predetermined Overhead Rate Particular Amount Direct Labour Cost $1,130,000 Labour Cost/Hour $24.00 Total Hour ( $1130000/$24) 47,083 Total Manufacturing Overhead $113,000 Overhead Recovery Rate ($113000/47083) $2.40 2.Computation of Total Cost of Job Job721 job722 Labour Hour 840 Hour 100 Hour Direct Material $22,800 $1,900 Direct Labour Cost @$24 $20,160 $2,400 Manufacturing Overhead @$2.40 $2,016 $240 Total Income $44,976 $4,540 3. Cost has been assigned on Specific job on the basis of use of resources and accordingly applied overhead on such Job . Philton assigns cost to job because he want to distribute manufactuing overhead burdon on the specific Job as per the standard recovery rate.