E4-19\u00a0(Budgeted Manufacturing Overhead Rate, Allocated Manufacturing Overhead, pages 127-128)\u00a0(Horngren, Datar, & Rajan, 2012) Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2011:\tBudgeted manufacturing overhead costs\tBudgeted machine-hours\tActual manufacturing overhead costs\tActual machine-hours\t$4,200,000\t175,000\t$4,050,000\t170,000\tRequired\t\t\tCalculate the budgeted manufacturing overhead rate.\t\t\tCalculate the manufacturing overhead allocated during 2011.\t\t\tCalculate the under- or overallocated manufacturing overhead.\t\u00a0\tE4-23\u00a0(Accounting for Manufacturing Overhead, page 129)Consider the following selected cost data for the Pittsburgh Forging Company for 2011.\tBudgeted manufacturing overhead costs\tBudgeted machine-hours\tActual manufacturing overhead costs\tActual machine-hours\t$7,500,000\t250,000\t$7,300,000\t245,000\tThe company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or overallocation is written off to Cost of Goods Sold.\tRequired\t\t\tCompute the budgeted manufacturing overhead rate.\t\t\tPrepare the journal entries to record the allocation of manufacturing overhead.\t\t\tCompute the amount of under- or overallocation of manufacturing overhead. Is the amount material? Prepare a journal entry to dispose of this amount.\t\u00a0\tE4-24\u00a0(Job Costing, Journal Entries, pages 129-130)\u00a0The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs).\t\u00a0\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The following data (in thousands) pertain to 2011:\tDirect materials and supplies purchased on credit\tDirect materials used\tIndirect materials issued to various production departments\tDirect manufacturing labor\tIndirect manufacturing labor incurred by various production departments\tDepreciation on building and manufacturing equipment\tMiscellaneous manufacturing overhead incurred by various production departments (ordinarily would be detailed as repairs, photocopying, utilities, etc.)\tManufacturing overhead allocated at 160% of direct manufacturing labor costs\tCost of goods manufactured\tRevenues\tCost of goods sold (before adjustment for under- or overallocated manufacturing overhead)\tInventories, December 31, 2010 (not 2011):\tMaterials Control\tWork-in-Process Control\tFinished Goods Control\t$800\t710\t100\t1,300\t900\t400\t550\t?\t4,120\t8,000\t4,020\t100\t60\t500\tRequired\t\t\tPrepare an overview diagram of the job-costing system at the University of Chicago Press.\t\t\tPrepare journal entries to summarize the 2011 transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.\t\t\tShow posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.\tE4-29\u00a0(Job-order Costing: Actual, Normal, and Variation from Normal Costing, pages 131-132)\u00a0Braden Brothers, Inc., is an architecture firm specializing in high-rise buildings. Its job-costing system has a single direct-cost category (architectural labor) and a single indirect-cost pool, which contains all costs of supporting the office. Support costs are allocated to individual jobs using architect labor-hours. Braden Brothers employs 15 architects.\tBudgeted and actual amounts for 2010 are as follows:\tRequired\t\t\tCompute the direct-cost rate and the indirect-cost rate per architectural labor-hour for 2010 under (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs.\t\t\tBraden Brother’s architectural sketches for Champ Tower in Houston was budgeted to take 275 hours of architectural labor time. The actual architectural labor time spent on the job was 250 hours. Compute the cost of the Champ Tower sketches using (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
E4-19\u00a0(Budgeted Manufacturing Overhead Rate, Allocated Manufacturing Overhead, pages 127-128)\u00a0(Horngren, Datar, & Rajan, 2012) Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2011: Budgeted manufacturing overhead costs Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201580","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201580"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201580\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}