ACCT322 – Calculate pre-determined overhead allocation
ACCT322
A. Calculate pre-determined overhead allocation rate. B. Calculate the applied overhead to job orders. C. Calculate the total cost for each job order and cost per unit.
ABC Company estimates that it will require 100,000 machine-hour to meet the coming period’s estimated production level in 2018. In addition, the company estimates total fixed manufacturing overhead at SR 300,000, and variable manufacturing overhead costs of SR 3 per machine -hour. (2marks)
If your fixed monthly utility charge is SR 100, your variable cost is SR1 per kilowatt hour, and your monthly activity level is 3,000 kilowatt hours, what is the amount of your utility bill? (1.0 marks)
Assume the following hours of maintenance work and the total maintenance costs for the following months: (1. marks)
following information are extracted from the records of ABC company for 2018: (1marks)
ABC company produced in Feb.2018 two job orders with the following information (Amounts in SR):
Job no. 1
Job no.2
Direct material
300,000
400,000
Direct labor
150,000
200,000
Actual machine hour used by orders
5,000
8,000
Units produced
5,000
6,000
Required:
Calculate pre-determined overhead allocation rate.
Calculate the applied overhead to job orders.
Calculate the total cost for each job order and cost per unit.
Month
Maintenance hours
Total cost
July
2,000
20,0000
Aug.
3,000
25,000
Sept.
6,000
40,000
Oct.
4,000
30,000
Nov.
5,000
35,000
Dec..
7,000
45,000
Required:Calculate fived costs using The High-Low Method
Revenues
300,000
Variable manufacturing expenses
100,000
Fixed manufacturing expenses
20,000
Variable selling expenses
15,000
Variable administrative expenses
20,000
Fixed selling expenses
25,000
Fixed administrative expenses
30,000
Required: prepare income statement using contribution margin approach.
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