?4?????? ????? 200 Principles of Accounting Ell Spring 2018 T1 perce) Homework:

Question

?4?????? ????? 200 Principles of Accounting Ell Spring 2018 T1 perce) Homework: Module 4 Mid-Term Exam Score: 0 of 30 pts CP19-41 (similar to zehui zheng Save 5 of 10 (0 complete) HWScore: 0%, 001200 pts Philton Computer Company uses a job order costing system in which each batch manufactured is a different job. Philton job. The company assigns labor costs at $24 per hour It allocates labor costs. At the beginning of 2020, the controller prepared the folowing budget Computer Company assigns direct materials and direct labor to each manufacturing overhead to jobs based on a predetermined overhead alocation rate, computed as a percentage of direct (Click the icon to view the budget) n November 2020, Phiton Computer Company worked on several jobs. Records for two jobs appear here EER (Click the lcon to view the records for the two jobs.) Read the requiremess Data Table Requirement 1. Compute Philton Computer Company's predetermined overhead (OH) allocation rate for 2020 Job 721 Job 722 Direct labor hours 840 hours 100 hours 13000 Oirect materials 22.80 S 1,900 Data Table Print Done 1. Compute Philton Computer Compary's predetermined overhead allocation rabe $ 113.000 for 2020 2. Compute the total cost of each job 3. Why does Philton assign costs to jobs? Direct labor costs Check Answor

Explanation / Answer

Question - 1

Predetermined overhead rate = Estimated Overhead Cost / Labor cost * 100

= 113,000 / 1130,000 * 100 = 10 %

Question - 2

Question - 3

Organisations incure costs only because of performance of certain activities in relation to various jobs under taken by it. So every cost it incurs should be collected as a charge against such job. To the extent, such costs are direct we put those figures directly in the respective job column and in respect of indirect costs ( overheads) we use some predetermined recovery rate for its collection from job.

Job 721 Job 722 Direct materials 22800 1900 Direct labor cost 20160 2400 Manufacturing Overhead 2016 240 Total cost 44976 4540

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