700-word summary- Organizational Behavior from the current readings attached

$4,500. The Materials Control account only includes direct materials. Direct materials

purchased during 2014 were $40,000. The beginning Work in Process for 2014 included cost from 2 jobs, Job 111 and Job 222. The Job 111 cost in beginning Work in Process was $3,000, which included $1,000 for direct materials, $1,000 for direct labor, and $1,000 for allocated overhead. The Job 222 cost in beginning Work in Process was $5,000, which included $1,000 for direct materials, $2,000 for direct labor, and $2,000 of allocated overhead. During the previous year, all underallocated or overallocated overhead had been charged totally to Cost of Goods Sold. The beginning balance in Finished Goods for 2014 included 50 units from Job 104, with a cost of $80 per unit. Of the total amount of $80 per unit, $20 per unit was overhead cost. The direct costs charged to jobs during 2014 are as follows:

Units on job 1,000 units 100 units 400 units 500 units not applicable

The company allocates (prorates) any underallocated or overallocated overhead to the appropriate accounts at the end of the year, using the most theoretically correct method. Actual overhead for

2014 was $70,000. During the year, all jobs were completed except Job 555. At the end of 2014, there were 375 units from Job 444 in Finished Goods. All other units that had been in Finished Goods during 2014 had been sold.

1. Compute the underallocated or overallocated overhead and prorate it to the appropriate accounts in the most theoretically correct way. Round percentages to the nearest per cent, and round total amounts to the nearest dollar, if needed.

2. If the company had used actual costing based on a year's time frame, what would the actual overhead rate have been? What would have been the total balance (DM + DL + OH) in ending Work in Process if the company had used actual costing? Now go back to normal costing and compute the corrected balance of Work in Process after your computations in number 1. Are the two balances in Work in Process (actual vs. corrected normal) the same? Should they be the same?

Please note that you may have been given a lot of information on this quiz that you don’t really need to answer the required questions. You need to be able to figure out what is relevant and what isn’t.

This quiz is worth 5 points and is due next Monday, March 2nd, at 4:30 in the afternoon. PLEASE remember that take-home quizzes are open book and open notes, but NOT open neighbor. Do your own work on this quiz.