Jobcostongabcpractice

1.
Bolander Corporation uses a job-order costing system with a single plantwide

predetermined overhead rate based on machine-hours. The company based its
predetermined overhead rate for the current year on the following data:
Total machine-hours 70,000

Total fixed manufacturing overhead cost $ 294,000
Variable manufacturing overhead per machine-hour $ 2.30
Recently, Job M825 was completed with the following characteristics:
Number of units in the job 20

Total machine-hours 80
Direct materials $ 665
Direct labor cost $ 1,840
The total job cost for Job M825 is closest to: (Round your intermediate calculations to 2
decimal places.)
2. Dancel Corporation has two production departments, Milling and Finishing. The
company uses a job-order costing system and computes a predetermined overhead rate
in each production department. The Milling Department's predetermined overhead rate
is based on machine-hours and the Finishing Department's predetermined overhead
rate is based on direct labor-hours. At the beginning of the current year, the company
had made the following estimates:
Milling Finishing
Machine-hours 17,000 14,000
Direct labor-hours 1,000 6,000
Total fixed manufacturing overhead cost $91,800 $64,200
Variable manufacturing overhead per machine-hour $2.00
Variable manufacturing overhead per direct labor-hour $3.40
During the current month the company started and finished Job M565. The following data
were recorded for this job:
Job M565: Milling Finishing

Machine-hours 70 20
Direct labor-hours 10 40
Direct materials $750 $360
Direct labor cost $340 $1,360
Required:
a. Calculate the total amount of overhead applied to Job M565 in both departments.
b. Calculate the total job cost for Job M565.
c. Calculate the selling price for Job M565 if the company marks up its unit product costs by
20% to determine selling prices.
3. Goertz Corporation has an activity-based costing system with three activity cost
pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the
two overhead accounts, equipment depreciation and supervisory expense, are allocated
to the three activity cost pools based on resource consumption. Data used in the first
stage allocations follow:
Overhead costs:
Equipment depreciation $ 51,000
Supervisory expense $ 3,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools

Machining Order Filling Other
Equipment depreciation 0.40 0.10 0.50
Supervisory expense 0.20 0.30 0.50
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs
are assigned to products using the number of orders. The costs in the Other activity cost pool
are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Machining) Orders (Order Filling)
Product J3 9,100 100
Product F7 900 900
Total 10,000 1,000
Finally, the costs of Machining and Order Filling are combined with the following sales and
direct cost data to determine product margins.
Sales and Direct Cost Data:
Product J3 Product F7
Sales (total) $ 145,200 $ 90,700
Direct materials (total) $ 81,400 $ 38,600
Direct labor (total) $ 37,700 $ 42,400
What is the overhead assigned to each product?
What is the product profit margin for each product?

4. Arrojo Corporation manufactures two products: Product X71B and Product C91I. The
company uses a plantwide overhead rate based on direct labor-hours. It is considering
implementing an activity-based costing (ABC) system that allocates its manufacturing
overhead to four cost pools. The following additional information is available for the
company as a whole and for Products X71B and C91I.
Activity Cost Pool Activity Measure Total Cost Total Activity

Machining Machine-hours $ 275,000 11,000 MHs
Machine setups Number of setups $ 210,000 350 setups
Product design Number of products $ 48,000 2 products
Order size Direct labor-hours $ 300,000 10,000 DLHs
Product
Activity Measure X71B Product C91I
Number of setups 220 130
Number of products 1 1
Using the plantwide overhead rate, how much manufacturing overhead cost would be
allocated to each product?
Using the activity based costing, how much manufacturing overhead cost would be allocated
to each product?
5. Digerolamo Enterprises makes a variety of products that it sells to other businesses.

The company's activity-based costing system has four activity cost pools for assigning
costs to products and customers. Details concerning that ABC system are listed below:
Activity Cost Pool Activity Measure Activity Rate

Supporting assembly Direct labor-hours (DLHs) $ 3.55 per DLH
Processing batches Number of batches $ 189.35 per batch
Processing orders Number of orders $ 59.35 per order
Serving customers Number of customers $ 1,159.00 per customer
The cost of serving customers, $1,159.00 per customer, is the cost of serving a customer for
one year.
Carlacci Corporation buys only one of the company's products which Digerolamo Enterprises
sells for $18.85 per unit. Last year Carlacci Corporation ordered a total of 1,500 units of this
product in 4 orders. To fill the orders, 9 batches were required. The direct materials cost is
$8.15 per unit and the direct labor cost is $2.60 per unit. Each unit requires 0.15 DLHs.
How much was the total cost of the activity "Processing batches" for this customer this past
year?
6. Kulka Corporation manufactures two products: Product F82D and Product T05P. The
company uses a plantwide overhead rate based on direct labor-hours. It is considering
implementing an activity-based costing (ABC) system that allocates its manufacturing
overhead to four cost pools. The following additional information is available for the
company as a whole and for Products F82D and T05P.
Activity Cost Pool Activity Measure Total Cost Total Activity

Machining Machine-hours $ 180,000 9,000 MHs
Machine setups Number of setups $ 125,000 250 setups
Product design Number of products $ 44,000 2 products
Order size Direct labor-hours $ 260,000 10,000 DLHs
Activity Measure Product F82D Product T05P

Number of setups 160 90
Number of products 1 1
Using the plantwide overhead rate, how much manufacturing overhead cost would be
allocated to each product?
Using the activity based costing, how much manufacturing overhead cost would be allocated
to each product?

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1.

Bolander Corporation uses a job-order costing system with a single plantwide

Total machine-hours 70,000

Recently, Job M825 was completed with the following characteristics:

Number of units in the job 20

Job M565: Milling Finishing

Distribution of Resource Consumption Across Activity Cost Pools:

Activity Cost Pools

Sales and Direct Cost Data:

What is the overhead assigned to each product?

What is the product profit margin for each product?

Activity Cost Pool Activity Measure Total Cost Total Activity

5. Digerolamo Enterprises makes a variety of products that it sells to other businesses.

Activity Cost Pool Activity Measure Activity Rate

Activity Cost Pool Activity Measure Total Cost Total Activity

Activity Measure Product F82D Product T05P

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