Question

please help. thank you!!
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 $250,000. During the past year, actual plantwide overhead was $232,000. 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 $ 133,000 132,000 $ 288,000 303,000 Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours 46,000 19,000 15,000 48,000 48,500 19,500 12,000 50,000 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. $19,000 33,000 7,600 Direct materials Direct labor cost: Department A (2,200 hr) Department B (1,200 hr) Machine-hours projected: Department A Department B Units produced 120 1,200 15,000

Answer 1

Requirement A1:

Plantwide overhead rate = (Departmental overheads + Plantwide overheads) / Total direct labor hours

Departmental overheads = $133,000 + $288,000 = $421,000

Plantwide overheads = $250,000

Total direct labor hours = 46,000 + 15,000 = 61,000

Plantwide overhead rate = ($421,000 + $250,000) / 61,000 direct labor hours = $11.00 per direct labor hour

Requirement A2:

Manufacturing cost per Unit Produced for Job no. 110

Particulars	$
Direct Materials	19,000
Direct labor cost ($33,000 + $7,600)	40,600
Overhead (2,200 + 1,200) * $11.00	37,400
Total Manufacturing cost	97,000

Manufacturing cost per unit = $97,000 / 15,000 units = $6.47 per unit

Requirement B1:

Plantwide overhead rate = Plantwide overheads) / Total machine hours

Plantwide overheads = $250,000

Total machine hours = 19,000 + 48,000 = 67,000 machine hours

Plantwide overhead rate = $250,000 / 67,000 direct labor hours = $3.73 per machine hour

Requirement B2:

Departmental overhead rate = Departmental overhead cost / Departmental machine hours

Department A:

Departmental overhead rate = $133,000 / 19,000 machine hours = $7.00 per machine hour

Department B:

Departmental overhead rate = $288,000 / 48,000 machine hours = $6.00 per machine hour

Requirement B3:

Particulars	$
Direct Materials	19,000
Direct labor cost ($33,000 + $7,600)	40,600
Plantwide Overhead (120 + 1,200) * $3.73	4,924
Departmental Overhead (120 * $7.00) + (1,200 * $6.00)	8,040
Total Manufacturing cost	72,564

Manufacturing cost per unit = $72,564 / 15,000 units = $4.84 per unit

All the best...