Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 17, Problem 7R
Nuttʼs management is very concerned about the cost of overhead on its jobs. When jobs are complete, overhead costs should be between 15% and 20% of total costs. For example, the labor cost on Job 8958 is 25% of total costs, higher than the norm. Open Job 8961 and click the Chart sheet tab. A pie chart appears showing the cost components on that job. Record the labor cost percentage in the space provided. Repeat this for each of the jobs worked on in August.
Did Nutt maintain good cost control on all its jobs? Explain.
Worksheet. During September, Job 8963 required two additional material requisitions to complete the job. Open JOB8963 and modify the
Preview the printout to make sure it will print neatly on one page, and then print the worksheet. Save the completed worksheet as JOBT.
Chart. Open JOB8964 and click the Chart sheet tab. Prepare a bar chart for JOB8964 showing the amount of material, labor, and overhead required to complete the job. Use the Chart Data Table found in rows 42–46 as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as J0B8964. Print the chart.
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Cost Flows
Consider the following independent jobs. Overhead is applied in Department 1 at the rate of $6 per direct labor hour. Overhead is applied in Department 2 at the rate of $8 per machine hour. Direct labor wages average $10 per hour in each department.
Required:
Fill in the missing data for each job. If an amount box does not require an entry, leave it blank or enter zero ("0"). If required, round your answers to two decimal places.
Job 213
Job 214
Job 217
Job 225
Total sales revenue
$fill in the blank 1
$4,375
$5,600
$1,150
Price per unit
$12
$fill in the blank 2
$14
$5
Materials used in production
$365
$fill in the blank 3
$488
$207
Department 1, direct labor cost
$fill in the blank 4
$700
$2,000
$230
Department 1, machine hours
15
35
50
12
Department 2, direct labor cost
$50
$100
$fill in the blank 5
$0
Department 2, machine hours
25
50
fill in the blank 6
fill in the blank 7
Department 1, overhead applied
$90
$fill in the blank 8
$1,200
$138…
Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected total direct labor hours to compute the overhead rate. (Round your answer to 2 decimal places.)
- overhead rate per direct labor hour?
What is the expected cost per unit produced for job no. 110? (Round your intermediate calculations and final answer to 2 decimal places.)
- manufactoring costs for Job 110 per unit?
image attached
Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
(Click the icon to view the estimates of the cost pools.)
The accounting records show the Bossman job consumed the following resourd
ources:
(Click the icon to view the resources consumed for the Bossman job.)
When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job
OA. may increase overall sales as other jobs will be cross-subsidized
B. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company
C. is fairly billed because resources are allocated uniformly to all jobs
D. will likely seek to do business with competitors
E. is grossly underbilled for the job, while other jobs will be unfairly overbilled
Resources Consumed
Cost Driver
Direct labour-hours
Machine-hours
Square metres of area
Actual Level
150
1,700
80
- X
Estimates of…
Chapter 17 Solutions
Excel Applications for Accounting Principles
Ch. 17 - Nutt Products manufactures screws and bolts made...Ch. 17 - Prob. 2RCh. 17 - Now that your worksheet has been saved as JOB2,...Ch. 17 - Next, open worksheet JOB2 again. Enter the data...Ch. 17 - Use the space provided below to prepare six...Ch. 17 - Nutts management is very concerned about the cost...
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