Title: The Dougherty Furniture Company manufactures tables. In March, the two production departments had ... Post by: ruskin on Nov 4, 2017 The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine hours in Department 100 and 8,000 direct manufacturing labour hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:
Department 100 Department 200 Direct materials purchased on account $110,000 $177,500 Direct materials used 32,500 13,500 Direct manufacturing labour 52,500 53,500 Indirect manufacturing labour 11,000 9,000 Indirect materials used 7,500 4,750 Lease on equipment 16,250 3,750 Utilities 1,000 1,250 Job A incurred 800 machine hours in Department 100 and 300 manufacturing labour hours in Department 200. The company uses a budgeted indirect cost allocation rate for applying overhead to production. Required: a. Determine the budgeted manufacturing indirect cost allocation rate for each department. b. Prepare the necessary journal entries to summarize the March transactions for Department 100. c. What is the total cost of Job A? Title: Re: The Dougherty Furniture Company manufactures tables. In March, the two production departments ... Post by: btpsand on Nov 4, 2017 a.
Manufacturing overhead rate Department 100 = $57,500/4,000 hours = $14.375 per machine-hour Manufacturing overhead rate Department 200 = $62,500/8,000 hours = $7.8125 per labour-hour b. Materials Control Department 100 110,000 Accounts Payable Control 110,000 Work-in-Process Control Department 100 32,500 Manufacturing Overhead Control Department 100 7,500 Materials Control Department 100 40,000 Work-in-Process Control Department 100 52,500 Manufacturing Overhead Control Department 100 11,000 Wages Payable Control 63,500 Manufacturing Overhead Control Department 100 17,250 Leaseholds Payable Control 16,250 Utilities Payable Control 1,000 Work-in-Process Control Dept. 100 ($14.375 × 800 hrs) 11,500 Manufacturing Overhead Allocated 11,500 c. Job A: Direct materials Dept. 100 $32,500 Direct materials Dept. 200 13,500 Direct manufacturing labour Dept. 100 52,500 Direct manufacturing labour Dept. 200 53,500 Manufacturing overhead Dept. 100 ($14.375 × 800) 11,500 Manufacturing overhead Dept. 200 ($7.8125 × 300) 2,344 Total $165,844 |