Monthly Archives: April 2013

(Under applied or over applied overhead) At the end of 2013, Jackson Tank Company’s account showed a $66,000 credit balance in manufacturing overhead control

ACCOUNTING (Under applied or over applied overhead) At the end of 2013, Jackson Tank Company’s account showed a $66,000 credit balance in manufacturing overhead control. In addition, the company had the following account balances: Work in Process Inventory $384,000 Finished … Continue reading

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(Predetermined Overhead Rate) For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour

ACCOUNTING (Predetermined Overhead Rate) For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm’s 2013 expected annual capacity is $78,000 direct labor hours, to be incurred evenly each month. Making … Continue reading

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The management of Drummer Corporation is considering dropping product D84L

ACCOUNTING The management of Drummer Corporation is considering dropping product D84L. Data from the company’s accounting system appear below. Sales $800,000 Variable Expenses $440,000 Fixed Manufacturing Expenses $248,000 Fixed Selling and Administrative Expenses $184,000 All fixed expenses of the company … Continue reading

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The information that follows pertains to Consumer Products for the year ended December 31, 19X6

ACCOUNTING Chapter 5 Problem 6 6. Direct and absorption costing The information that follows pertains to Consumer Products for the year ended December 31, 19X6. Inventory, 1/1/X6 24,000 units Units manufactured 80,000 Units sold 82,000 Inventory, 12/31/X6 ? units Manufacturing … Continue reading

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Cedars Hospital has average revenue of $180 per patient day

ACCOUNTING Chapter 5 Exercise 3 3. Break-even and other CVP relationships Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year. a. How many patient days does … Continue reading

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The treasurer anticipates the following costs for the event, which will be held at the Regency Hotel

ACCOUNTING Chapter 5 Exercise 2 The treasurer anticipates the following costs for the event, which will be held at the Regency Hotel: Room rental $300 Dinner cost (per person) 25 Chartered buses 500 Favors and souvenirs (per person) 5 Band … Continue reading

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The following cost data pertain to 19X6 operations of Heritage Products

ACCOUNTING Chapter 5 Exercise 1 1. High-low method The following cost data pertain to 19X6 operations of Heritage Products: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Shipping costs $58,200 $58,620 $60,125 $59,400 Orders shipped 120 140 175 150 The … Continue reading

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General Corporation employs a job order cost system

ACCOUNTING Chapter 4 Problem 2 2. Computations using a job order system General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger; Work in process $ 35,200 Finished goods 86,900 … Continue reading

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The Towson Manufacturing Corporation applies overhead on the basis of machine hours

ACCOUNTING Chapter 4 Exercise 7 7. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Division A Division B Actual machine hours 22,500 ? … Continue reading

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Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost

ACCOUNTING Chapter 4 Exercise 3 3. Cost flows and overhead application Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow. … Continue reading

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