Assume the following information relates to Q Company for the Month of May
Job No. 306. Job No. 307. Job No. 308
In process - May 1
Materials. $ 30,000. $15,000. $0
Labor. $45,000. $30,000. 0
Overhead. $67,500. $45,000. 0
Costs added in May:
Materials. 7,500. 30,000. 30,000
Labor. 30,000. 30,000. 30,000
Overhead. ? ? ?
Actual overhead costs incurred in May amounted to $172,500. Job Nos. 306 and 307 were completed and transferred out in May. Overhead is applied using a predetermined overhead rate. From the above data compute:
a.The cost of the May 1 work in process inventory
b. The total amount of overhead assigned to production in May assuming no change in the overhead rate employed.
c. The cost of Job No. 306 when completed.
d. The cost of the goods completed and transferred.
e.The cost of the May 30 work in process inventory.
In reference to the preceding problem, the balance in the Manufacturing Overhead account is $__________, and overhead is __________ (overapplied / underapplied).
A __________ __________ is a measure of activity, such as machine-hours or computer time, that is a causal factor in the incurrence of costs in an organization.
Generally speaking, manufacturing overhead is applied to production by means of a __________ __________ __________, which is computed under the general formula of dividing __________ __________ __________ by some measure of the __________ __________ __________.
Common bases or levels of activity on which overhead rates are often based include __________ __________ __________ __________ __________, __________ __________-__________, and __________-__________.
Manufacturing overhead is __________ when the amount of overhead applied to production exceeds the amount of overhead incurred in a period. When the reverse is true, overhead is __________.
Assume that budgeted total overhead is $1,000,000 and that budgeted machine-hours are 100,000 for the coming period. Actual overhead was $1,006,000 and actual machine-hours were 102,000. Overhead for the period is __________ (overapplied / underapplied) by $_________.
One difference between the income statements unders the two methods, absorption and variable costing, is that absorption costing focuses on gross __________, while variable costing focuses on __________ margin.
Under __________ __________, all __________ manufacturing overhead costs are charged off during the period rather than being deferred and carried forward to the next period as part of inventory cost.
The only differences between absorption costing and variable costing are the treatment of __________ __________ __________ and the __________ __________ preparation.
__________ and __________ expenses are treated as __________ costs under both absorption and variable costing methods.
Variable __________ and __________ expenses are not part of product costs under either absorption or variable costing methods.