Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process: Budgeted MOH Budgeted production (units) Budgeted direct labor hours Cost Pool Cost Pool 1 Cost Pool 2 Total Total Cost $ 6,000,000 $ 9,000,000 $ 15,000,000 $ 15,000,000 25,000,000 40,000 Allocation Base Unit Direct labor hour Question a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals. b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round your answer to 2 decimals. c1. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 1 for the upcoming year? Note: Round your answer to 2 decimals. c2. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 2 for the upcoming year? Note: Round your answer to 2 decimals. d. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a jobcosting system with the two cost pools listed above, what is the total allocated manufacturing overhead to the job? Note: Round your answer to 2 decimals. Answer per unit per unit per DLH
Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process: Budgeted MOH Budgeted production (units) Budgeted direct labor hours Cost Pool Cost Pool 1 Cost Pool 2 Total Total Cost $ 6,000,000 $ 9,000,000 $ 15,000,000 $ 15,000,000 25,000,000 40,000 Allocation Base Unit Direct labor hour Question a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals. b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round your answer to 2 decimals. c1. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 1 for the upcoming year? Note: Round your answer to 2 decimals. c2. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What are the predetermined overhead rates for cost pool 2 for the upcoming year? Note: Round your answer to 2 decimals. d. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a jobcosting system with the two cost pools listed above, what is the total allocated manufacturing overhead to the job? Note: Round your answer to 2 decimals. Answer per unit per unit per DLH
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Harper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the
beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process:
Budgeted MOH
Budgeted production (units)
Budgeted direct labor hours
Cost Pool
Cost Pool 1
Cost Pool 2
Total
Total Cost
$ 6,000,000
$ 9,000,000
$ 15,000,000
$ 15,000,000
25,000,000
40,000
Allocation Base
Unit
Direct labor hour
Question
a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the
predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals.
b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system
with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round
your answer to 2 decimals.
c1. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What
are the predetermined overhead rates for cost pool 1 for the upcoming year? Note: Round your answer to 2
decimals.
c2. Now assume that Harper uses a two-stage job costing system with the two cost pools listed above. What
are the predetermined overhead rates for cost pool 2 for the upcoming year? Note: Round your answer to 2
decimals.
d. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a jobcosting system with the
two cost pools listed above, what is the total allocated manufacturing overhead to the job? Note: Round your
answer to 2 decimals.
Answer
per unit
per unit
per DLH
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning