{"id":22858,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/the-gilster-company-a-machine-tooling-firm-has-several-plants"},"modified":"2017-08-03T16:11:42","modified_gmt":"2017-08-03T16:11:42","slug":"the-gilster-company-a-machine-tooling-firm-has-several-plants","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/the-gilster-company-a-machine-tooling-firm-has-several-plants\/","title":{"rendered":"The Gilster Company, a machine tooling firm, has several plants"},"content":{"rendered":"
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The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager\u2019s salary, accounting personnel, cafeteria, and human resources, is budgeted at $400,000. During the past year, actual plantwide overhead was $385,000. Each department\u2019s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows:<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nDepartment A<\/td>\nDepartment B<\/td>\n<\/tr>\n
Budgeted department overhead<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
(excludes plantwide overhead)<\/td>\n$<\/td>\n153,000<\/td>\n<\/td>\n$<\/td>\n439,900<\/td>\n<\/td>\n<\/tr>\n
Actual department overhead<\/td>\n<\/td>\n170,000<\/td>\n<\/td>\n<\/td>\n459,900<\/td>\n<\/td>\n<\/tr>\n
Expected total<\/em> activity:<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Direct labor hours<\/td>\n<\/td>\n50,000<\/td>\n<\/td>\n<\/td>\n25,000<\/td>\n<\/td>\n<\/tr>\n
Machine-hours<\/td>\n<\/td>\n15,000<\/td>\n<\/td>\n<\/td>\n53,000<\/td>\n<\/td>\n<\/tr>\n
Actual activity:<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Direct labor hours<\/td>\n<\/td>\n50,500<\/td>\n<\/td>\n<\/td>\n23,900<\/td>\n<\/td>\n<\/tr>\n
Machine-hours<\/td>\n<\/td>\n15,800<\/td>\n<\/td>\n<\/td>\n55,000<\/td>\n<\/td>\n<\/tr>\n
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<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining only<\/em> to job no. 110 are as follows:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/tr>\n
Direct materials<\/td>\n$<\/td>\n21,600<\/td>\n<\/td>\n<\/tr>\n
Direct labor cost:<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Department A (3,000 hr)<\/td>\n<\/td>\n45,000<\/td>\n<\/td>\n<\/tr>\n
Department B (1,100 hr)<\/td>\n<\/td>\n10,000<\/td>\n<\/td>\n<\/tr>\n
Machine-hours projected:<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Department A<\/td>\n<\/td>\n230<\/td>\n<\/td>\n<\/tr>\n
Department B<\/td>\n<\/td>\n1,200<\/td>\n<\/td>\n<\/tr>\n
Units produced<\/td>\n<\/td>\n15,000<\/td>\n<\/td>\n<\/tr>\n
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<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

1.value:
10.00 pointsRequired information<\/p>\n

Instructions<\/strong><\/p>\n\n\n\n\n
a-1.<\/strong><\/td>\nAssume the St. Falls plant uses a single plantwide overhead rate to assign all<\/em> overhead (plantwide and department) costs to jobs. Find the overhead rate by using expected direct labor hours. (Round your answer to 2 decimal places.)<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
a-2.<\/strong><\/td>\n\n

Determine the projected amount of total manufacturing costs per unit for the units in job no. 110. (Round your intermediate calculations and final answer to 2 decimal places.)<\/strong><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

ReferencesWorksheetDifficulty: 3 HardCheck my work
2.value:
10.00 pointsRequired information<\/p>\n\n\n\n
Assume the St. Falls plant uses three separate overhead rates to assign overhead costs to jobs.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
b-1.<\/strong><\/td>\n\n

Find the plant wide overhead rate by using expected machine hours. (Round your answer to 2 decimal places.)<\/strong><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
b-2.<\/strong><\/td>\n\n

Find the department overhead rate using expected machine hours for Department A and Department B. (Round your answer to 2 decimal places.)<\/strong><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
b-3.<\/strong><\/td>\nCalculate the projected manufacturing costs for job 110 using the three separate rates computed in b-1 and b-2 above. (Round your intermediate calculations and final answer to 2 decimal places.)<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

ReferencesWorksheetDifficulty: 3 HardCheck my work
3.value:
10.00 pointsRequired information<\/p>\n\n\n\n\n
c-1.<\/strong><\/td>\nThe sales policy at St. Falls dictates that job bids be calculated by adding 27 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
c-2.<\/strong><\/td>\nThe sales policy at St. Falls dictates that job bids be calculated by adding 27 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
c-3.<\/strong><\/td>\nWhich of the overhead allocation methods would you recommend?<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n\n\n\n\n
<\/td>\nOverhead rate by direct labor hours<\/td>\n<\/tr>\n
<\/td>\nOverhead rate by machine hours<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

ReferencesWorksheetDifficulty: 3 HardCheck my work
4.value:
10.00 pointsRequired information<\/p>\n\n\n\n
d.<\/strong><\/td>\n\n

Using the allocation rates in part b, compute the under- or overapplied overhead for the St. Falls plant for the year. (Round your intermediate calculations to 2 decimal places.)<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. 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-22858","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/22858","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=22858"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/22858\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=22858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=22858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=22858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}