# What is the estimated overhead rate that should be used in the: a. Machining Department (2 mark) b. Assembly Department

The Designhill Company uses a normal job-costing system at its Melbourne plant. The plant has a machining department and an assembly department. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the machining department with machine hours as the allocation base, and the assembly department with direct manufacturing labour costs as the allocation base).
The 2020 budget for the plant were as follows:
Machining Department of Assembly Department Manufacturing overhead \$1,800,000 \$3,600,000 Direct manufacturing labour costs \$1,400,000 \$2,000,000 Direct manufacturing labour-hours 100,000 200,000 Machine-hours 50,000 220,000
Required:
1) What is the estimated overhead rate that should be used in the: a. Machining Department (2 mark) b. Assembly Department (2 mark)
2) The job-cost record for Job F49 contained the following:
I Machining Department Assembly Department Direct materials used \$45,000 \$70,000 Direct manufacturing labour costs \$14,000 \$15,000 Direct manufacturing labour-hours 1,000 1,500 Machine-hours 2,000 1,000
AUSTRALIAN INSTITUTE OF HIGHER EDUCATION
a) Compute the total manufacturing overhead costs allocated to lob F49. (3 marks) b) Assuming that Job F49 manufactured 200 units of product, calculate the per-unit total manufacturing cost for Job F49. (3 marks)
Question 2: Process Costing (10 marks) Steelcase Company manufactures tables for business and home offices. The manufacturing process involves the Production Department and the Quality Control Department, during which each table coming out of the Production Department is immediately transferred to the Quality Control Department. The company’s process-costing system requires two cost categories being direct materials and conversion costs. Direct materials are added at the beginning of the process when the degree of completion for direct materials is determined. Conversion costs are added evenly during the process.
The table below shows the relevant data for the Production Department for November 2020.
Physical Units (tables) Direct Material Costs Conversion Costs Work in process, 1 November 2020 (t) Started during November 2020 Completed during November 2020 Work in process, 30 November 2020 (••) Costs added during November 2020 12 23 30 4 000 000 800 200 \$14 \$38 000 000 \$8 \$24 000 000
Nato
(a) Degree of completion: 100% for direct materials and 40% for conversion cost (••) Degree of completion: 100% for direct materials and 35% for conversion cost

The post What is the estimated overhead rate that should be used in the: a. Machining Department (2 mark) b. Assembly Department appeared first on Best Custom Essay Writing Services | EssayBureau.com.

X
Don`t copy text!