Scribd Logo
Upload

Welcome to Scribd!

  • 210 views

    2-13 White Company Has Two Departments Cutting and Finishing. The Company Uses A Job-Order

    Uploaded by

    Kailash Kumar
    The document contains information about the fixed and variable manufacturing overhead costs for two departments, cutting and finishing. It shows the overhead rates per unit and total overhead costs calculated based on different production volumes. It then presents an alternative scenario where the allocation base, or number of production units, changes for the cutting department, which would result in different overhead rates and total costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    2-13 White Company Has Two Departments Cutting and Finishing. The Company Uses A Job-Order

    Uploaded by

    Kailash Kumar
    210 views2 pages
    The document contains information about the fixed and variable manufacturing overhead costs for two departments, cutting and finishing. It shows the overhead rates per unit and total overhead costs calculated based on different production volumes. It then presents an alternative scenario where the allocation base, or number of production units, changes for the cutting department, which would result in different overhead rates and total costs.

    Original Description:

    JKJ

    Original Title

    2-13 White Company Has Two Departments Cutting and Finishing. the Company Uses a Job-Order

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains information about the fixed and variable manufacturing overhead costs for two departments, cutting and finishing. It shows the overhead rates per unit and total overhead costs calculated based on different production volumes. It then presents an alternative scenario where the allocation base, or number of production units, changes for the cutting department, which would result in different overhead rates and total costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    210 views2 pages

    2-13 White Company Has Two Departments Cutting and Finishing. The Company Uses A Job-Order

    Uploaded by

    Kailash Kumar
    The document contains information about the fixed and variable manufacturing overhead costs for two departments, cutting and finishing. It shows the overhead rates per unit and total overhead costs calculated based on different production volumes. It then presents an alternative scenario where the allocation base, or number of production units, changes for the cutting department, which would result in different overhead rates and total costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Ques 1

    Cutting department Finishing department


    Fixed Maufacturing overhead costs 360000 462000
    Allocation base 59400 73000
    Fixed Maufacturing overhead costsper unit $ 6.06 $ 6.33
    Add:varaible overead per unit $ 2.00 $ 2.75
    Predetermined overhead per unit $ 8.06 $ 9.08

    Ques 2

    Cutting Finishing
    DM $ 700.00 $ 370.00
    DL $ 75.00 $ 500.00
    MOH $ 677.04 $ 181.60
    (8.06*84) (9.08*20)
    Total Cost

    Ques 3
    Yes the costs would be different they are as follows

    Cutting department Finishing department


    Fixed Maufacturing overhead costs 360000 462000
    Allocation base 6400 73000
    Fixed Maufacturing overhead costsper unit $ 56.25 $ 6.33
    Add:varaible overead per unit $ 2.00 $ 2.75
    Predetermined overhead per unit $ 58.25 $ 9.08

    Cutting Finishing
    DM $ 700.00 $ 370.00
    DL $ 75.00 $ 500.00
    MOH $ 174.75 $ 181.60
    (58.25*3) (9.08*20)
    Total Cost
    Total
    $ 1,070.00
    $ 575.00
    $ 858.64

    $ 2,503.64

    Total
    $ 1,070.00
    $ 575.00
    $ 356.35

    $ 2,001.35

    You might also like