| Overhead Rate = Overheads/Driver | ||
| Residential = 480480/208000 | 2.31 | per $ of Direct Labor cost |
| Commercial = 964600/74200 | 13 | Per Service hour |
| Job 6524-R7 | Job 23090-C1 | |
| Overheads | 16,632 | 1,014 |
| Job 6524-R7 | Job 23090-C1 | |
| Revenue | 28000 | 56000 |
| Direct Supplies | 2098 | 8750 |
| Overheads | 16,632 | 1,014 |
| Profit | 9,270 | 46,236 |
| Job 23090-C1 is more profitable by | 36,966 |
Question 5: Palatka Service Company has two service departments, Residential and Commercial. Overhead is applied based...
1) Duke Snyder Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted Amounts Direct labor cost Factory overhead Machine-hours Department X $180,000 $225,000 51,000 mh Department Y $165,000 $180,000 40,000 mh Actual data for Job #10 Direct materials requisitioned Direct labor cost Machine-hours Department X $10,000 $11,000 5,000 mh Department Y $16.000 $14,000 3.000 mh Required: a. Compute the...
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Balistic Company uses two producing departments (A and B) and two service departments (S1 and S2). The costs incurred in S1 and S2 are allocated to Departments A and B and included in their factory overhead rates for costing products. S1 costs are allocated based on the number of employees, S2 costs are allocated based on direct labor hours, and the production departmental overhead rates are also based on direct labor hours. The following data are available...
Pineapple Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Pineapple: Assembly Department $165,600 Testing Department 633,600 Total $799,200 Direct machine hours were estimated as follows: 3,600 hours...
Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Assembly Department $280,000 Testing Department 800,000 Total $1,080,000 Direct machine hours were estimated as follows: Assembly Department...
34445 A service company, SUPER CLEAN, provides commercial and residential cleaning services. The company is currently using a job costing system. Overhead are allocated based on the direct labour hours. A. Traditional Costing with plant wide method: Using traditional costing the company calculated the overhead cost based on 21 000 hours of activity: Activity cost pools Receptionist Office supplies Estimated cost $ 25,000 $ 3,000 $ 32,500 $ 37.500 $ 98,000 Depreciation tota Required - Part A: Calculate the overhead...
Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 20,000 hours last year, 13,000 on residential jobs and 7,000 on commercial jobs. Wages were $25 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis...
Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 44,000 hours last year, 30,000 on residential jobs and 14,000 on commercial jobs. Wages were $14 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis...
Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 38,000 hours last year, 22,000 on residential jobs and 16,000 on commercial jobs. Wages were $13 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis...
Green Thumb, Inc., is a lawn care service. The company originally specialized in serving residential clients but has recently started contracting for work with larger commercial clients. Mr. Green, the owner, is considering reducing residential services and increasing commercial lawn care. Five field employees worked a total of 11,000 hours last year—7,500 on residential jobs and 3,500 on commercial jobs. Wages were $10.00 per hour for all work done. Direct materials used were minimal and are included in overhead. All...
2. The Galaxy Company has two service departments (Power and maintenance) and two production departments (Machinery and Assembly). Additional information is given below: Kilowatt Maintenance Cost Hours Hours Machinery 450,000 39,000 1,600 Assembly 210.000 15,000 2,400 Power 135,000 5,500 1,000 Maintenance 90,000 6,000 600 Costs of Power department are allocated on the basis of Kilowatt Hours. The Costs of Maintenance department are allocated on the basis of Maintenance Hours. Total machine hours worked in Machinery Department is 2,500 and total...