Business
Business, 08.02.2021 05:20, bethdove9466

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager’s salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department’s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department A Department B
Budgeted department overhead
(excludes plantwide overhead) $ 85,000 $ 368,000
Actual department overhead 100,000 375,000
Expected total activity:
Direct labor hours 42,000 10,000
Machine-hours 17,000 46,000
Actual activity:
Direct labor hours 42,500 8,200
Machine-hours 17,500 48,000
For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no. 110 are as follows.

Direct materials $ 18,000
Direct labor cost:
Department A (2,200 hr) 33,000
Department B (1,200 hr) 6,000
Machine-hours projected:
Department A 100
Department B 1,200
Units produced 13,000
c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 30 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a?

c-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 30 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b?

c-3. Which of the overhead allocation methods would you recommend?

answer
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 11:00, cranfordjacori
The role of the credit department includes: a. evaluating customers' credit applications to determine whether they meet the company's approval standards. b. approving all credit applications in order to avoid losing sales. c. collecting cash from customers. d. following unwritten approval standards for processing customers' credit applications.
Answers: 2
image
Business, 22.06.2019 11:00, jasozhan
Your debit card is stolen, and you report it to your bank within two business days. how much money can you lose at most? a. $500 b. $25 c. $50 d. $150
Answers: 2
image
Business, 22.06.2019 13:10, princessgabbee8452
Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock
Answers: 1
image
Business, 22.06.2019 19:00, mairadua14
12. to produce a textured purée, you would use a/an a. food processor. b. wide-mesh sieve. c. immersion blender d. food mill.
Answers: 1
Do you know the correct answer?
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Mi...

Questions in other subjects: