Smithson Company Plantwide and Departmental Overhead
SuperClassExercise 3-18 Plantwide and Departmental Overhead Rates; Job Costs [L01, L02, L03]
Smithson Company uses a job-order costing system and has two manufacturing departments--Molding and Fabrication. The company provided the following estimates at the beginning of the year:
| Molding |
| Fabrication |
| Total |
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Machine-hours | $20,000 |
| 30,000 |
| 50,000 |
Fixed manufacturing overhead costs | 800,000 |
| $300,000 |
| $1,100,000 |
Variable manufacturing overhead per machine-hour | $5.00 |
| $5.00 |
|
|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two job—Job D-75 and Job C-100. It provided the following information related to the two jobs:
Job D-75: | Molding |
| Fabrication |
| Total |
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Direct materials cost | $375,000 |
| $325,000 |
| $700,000 |
Direct labor cost | $200,000 |
| $160,000 |
| $360,000 |
Machine-hours | 15,000 |
| 5,000 |
| 20,000 |
Job C-100: | Molding |
| Fabrication |
| Total |
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Direct materials cost | $300,000 |
| $250,000 |
| $550,000 |
Direct labor cost | $175,000 |
| $225,000 |
| $400,000 |
Machine-hours | 5,000 |
| 25,000 |
| 30,000 |
Smithson had no overapplied or underapplied manufacturing overhead during the year.
11 years ago
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