Questions: 1 - What was the predetermined MOH rate for 2018? 2 - In January, wha
ID: 2546725 • Letter: Q
Question
Questions:
1 - What was the predetermined MOH rate for 2018?
2 - In January, what was the total cost incurred on Job 599?
3 - What was the total cost incurred on Job 599?
4 - What was the cost per unit for Job 599?
5 - What was the total cost of Job 600 through 1/31/18?
6 - What was the total MOH applied to jobs during January?
7 - What was the balance in MOH at 1/31/18? (If the balance was a credit, enter it in parentheses.)
8 - Was MOH overapplied or underapplied during January? (Type in the word 'over' or 'under' as your answer.)
Problem A Martinez Products, Inc. is a manufacturing company that uses a predetermined overhead rate to apply overhead to individual jobs. At 12/31/17, the company had the following account balances: Raw materials 2,500 FG 44,895 Total estimated overhead costs 348,750 WIP $16,720 (all Job 599) At the beginning of 2018, the company made the following estimates: Total estimated direct labor hours 15,000 The company believes that direct labor hours drive MOH.Explanation / Answer
Req 1. Pre-determined OH rate: Estimated OH / Estimated labour hours $ 348750 /15000 = $23.25 per DLH Req 2: Total cost in jan for Job 599: Material 12900 Labour 10580 OH (1058 hours @ 23.25) 24598.5 Jan cost in Job 599 48078.5 Req3: Total cost of Job 599 Beginning cost 16720 Add: jan cost 48078.5 Total cost of Job 599 64798.5 Req 4. Unit cost for Job 599: Total cost 64798.5 Divide: Numbe rof units 650 Cost per unit 99.69 Req 5: Total cost of Job 600: Material 8600 labour 1870 OH (187 hours @23.25) 4347.75 Total cost of Job 600: 14817.75 Req 6: MOH applied: OH applied to Job 599 24598.5 OH applied to Job 600 4347.75 Total MOH applied 28946.25 Req 7: Balance in MOH: MOH incurred: Indirect labour 4822 Indirect material 5811 Facilities cost 9105 Equipment cost 5735 Total MOH incurred 25473 Less: MOH applied 28946.25 Balance in MOH: 3473.25 Credit Req 8: MOH are over-applied during the year by $ 3473.25
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