AF 210

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EX1-Raw

Overhead rate based on direct labor-hours. Estimates: 20,000 direct labor-hours, $94,000 fixed mfg overhead, and $2.00 per direct labor-hour of variable mfg overhead.
Actual mfg overhead cost $123,900; and actual total direct labor was 21,000 hours.
Compute the company’s plantwide predetermined overhead rate for the year.
			IMPORTANT NOTE:	The Allocation Base (in this case) is: "Direct Labor-hours"
	In This Case: Remember Y = a + bX; where 'a' = the Y intercept and 'b' = slope?
	From the Text We Learned: Est Total MFG Cost = Est Fixed MFG Cost + Est Variable MFG Cost * Est Units of the Allocation Base (in this case: direct labor-hours)
	So, think of 'Y', which is the Est Total MFG Overhead Cost: as Unknown
	Given:	'a', which is the Est Fixed Mfg Overhead: is 94000
		'b', which is the Est Variable Mfg Overhead change associated with each labor-hour: is 2
		and, 'X', which is the estimated # of allocation base units: is 20000
			…Solve for 'Y'
					a (est fixed mfg overhead):	$ 94,000
					b (est variable mfg overhead per direct labor-hour):	2
					X (est # direct labor-hours):	20,000	(Actual):	21,000
					Y (Total Est MFG Overhead Cost):		(Actual):	123,900
			…Solve for POHR
					POHR:		…per Direct Labor-hour

LEGEND: SPECIFIC TO A JOB (estimated)----------------------------- # of Allocation Base Units (predetermined cost driver; e.g., direct labor hours) = Total Base Unit Cost / Cost per each Base Unit Estimated Fixed Manufacturing Cost = based upon historical data Estimated Variable Manufacturing Cost = based upon historical data Estimated Total Manufacturing Cost (estimated prior to...) = Est Fixed MFG Cost + Est Variable MFG Cost * Est Allocation Base Units Predetermined Overhead Rate (POHR) = Est Total MFG Overhead Cost / Est # of Allocation Base Units FACTORING ALL JOBS (completed)--------------------- Applied Manufacturing Overhead Cost (determined after completion specific to a job) = # of Allocation Units * POHR Total Manufacturing Cost = Σ(Total Direct Materials & Labor + Applied Mfg Overhead Cost) - all jobs Unit Product Cost (relative to a completed job) = Total Manufacturing Cost / # of Units Produced

EX2-Raw

Predetermined overhead rate = $23.40 per direct labor-hour; based on a cost formula estimating: $257,400 of total mfg overhead cost & 11,000 direct labor-hours.
Company incurred actual total mfg overhead cost of $249,000 and 10,800 total direct labor-hours.
Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period [based on Actual Direct Labor Hours!].
Given:		Est # Direct Labor-hours:	11,000.00	(Actual):	10,800	Unknown:
		Total Est MFG Overhead Cost:	257,400.00	(Actual):	249,000		Applied based upon Actual Direct Labor-hours:
		POHR:	$ 23.40	…per Direct Labor-hour
	The Unknown (in this case) is the Total MFG Overhead Cost allocated to ACTUAL Direct Labor Hours based upon the POHR

EX3-Raw

POHR is $14.00 per direct labor-hour, and direct labor wage rate = $17.00 per hour; Direct Materials = $231 and Direct Labor = $153 (estimated?)
1. What is the total manufacturing cost?
2. If the Job consists of (produced) 40 units, what is the unit product cost for this job?
	Given:	Total Direct Materials Cost:	231.00
		Total Direct Labor Cost:	153.00		POHR Formula Rearranged
		Direct Labor Wage Rate:	17.00	…per Direct Labor-hour
		POHR:	14.00	…per Direct Labor-hour
		# of Allocation Base Units (Direct Labor-hours):		= tot direct labor cost / direct labor wage rate
		MFG Overhead Cost Applied to Job:		=POHR* # of Allocation Base Units
		Total MFG Cost:		=Σ(Dir Mats + Dir Lab + (applied) MFG Overhead)
		Units Produced:	40.00
		Unit Product Cost:		=Tot MFG Cost / # of Units Produced

EX4-Raw

Predetermined overhead rate for "Assembly" = $16.00 per direct labor-hour, and for "Testing & Packaging" it is $12 per direct labor-hour;
direct labor wage rate = $20.00 per hour;
for "Assembly": Direct Materials = $340 and Direct Labor = $180; and for "Testing & Packaging": Direct Materials = $25 and Direct Labor = $40.
1. What is the total manufacturing cost?
2. If the Job consists of (produced) 10 units, what is the unit product cost for this job?
			Assembly	Testing & Packaging
	Given:	Total Direct Materials Cost:	340.00	25.00
		Total Direct Labor Cost:	180.00	40.00
		Direct Labor Wage Rate:	20.00	20.00	…per Direct Labor-hour
		POHR:	16.00	12.00	…per Direct Labor-hour
		# of Allocation Base Units (Direct Labor-hours):			= tot direct labor cost / direct labor wage rate
		MFG Overhead Cost Applied to Job:			=POHR* # of Allocation Base Units
			Total MFG Cost:		=Σ(Dir Mats + Dir Lab + (applied) MFG Overhead)
			Units Produced:	10.00
			Unit Product Cost:		=Tot MFG Cost / # of Units Produced

EX5-Raw

Predetermined overhead rate for "Finishing" = $18.00 per direct labor-hour, for "Fabrication" it is 110% (relative to Direct Materials cost);
direct labor wage rate = $16.00 per hour;
for "Finishing": Direct Materials = $410 and Direct Labor = $128; and for "Fabrication": Direct Materials = $60 and Direct Labor = $48.
1. What is the total manufacturing cost? …HINT: POHR for Fabrication is 1.1, and the # of Allocation Base Units = Tot Direct Mat Cost
2. If the Job consists of (produced) 15 units, what is the unit product cost for this job?
										On Own

EX6-Raw

The company uses a job-order costing system and its predetermined overhead rate is on the basis of direct labor-hours;
estimates: direct labor-hours = 80,000; fixed overhead = 680000; variable overhead = .5 per direct labor-hour;
Actual overhead was 692000; and total direct labor was 83000 hours <<== for comparison only (don't use)
1. Compute the predeterined overhead rate
2. Compute the total job cost for the Xavier Company engagement; Given:								On Own
dir materials = $38,000; direct labor cost = $21,000; and dir labor-hours worked = 280

EX7-Raw

Using a job-order costing system, predetermined overhead rate uses direct labor-hours as the allocation base; direct laborers earn $15 per hour;
Job Alpha used 54,500 direct labor hours; all other data (also pertaining to Job Omega) are below.
1. Calculate the plantwide predetermined overhead rate.
2. Complete the job cost sheet for Job Alpha.					On Own?

EX8-Raw

Overhead cost is based on 125% of direct labor cost; job costs include $10,000 in direct materials and $12,000 in direct labor;
a total of 1,000 units were produced.
1. What is the total manufacturing cost?
2. What is the unit product cost?					On Own