Delph Company type of provides a job-order costing system and also has actually two production departments: Molding and also Fabrication. The agency gave the adhering to approximates at the beginning of the year:

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Throughout the year, the firm had no start or ending inventories and it began, completed, and also marketed just two work, job D-70 and also Job C-200. It offered the following indevelopment concerned those two jobs:

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Assume Delph supplies a plantwide overhead rate based on machine-hrs.

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1. a. Compute the prefigured out plantwide overhead price. (Round your answer to 2 decimal areas.)

b. Compute the complete manufacturing prices assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

c. If Delph establishes bid prices that are 150% of full production costs, what bid price would it have actually establiburned for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal locations.)

d. What is Delph"s price of items offered for the year? (Round your intermediate calculations to 2 decimal places.)

Assume Delph uses departpsychological overhead rates based on machine-hours.

2. a. Compute the predetermined departmental overhead prices.

b. Compute the total production costs assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 150% of complete manufacturing prices, what bid price would certainly it have establimelted for Job D-70 and Job C-200?

d. What is Delph"s cost of products sold for the year?


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GroQuick Company kind of manufactures a high-top quality fertilizer, which isprovided primarily by commercial veg-etable growers. Two departmentsare associated in the manufacturing procedure. In the Mixing Department,various chemicals are entered right into production. After processing,the Mixing Department transfers a chemical dubbed Chemgro to theFinishing Department. There the product is completed, packaged, andshipped under the brand also name Vegegro.

Various chemicals----->MixingDept.----->Chemgro----->FinishingDept.----->Vegegro----->

In the Mixing Department, the raw product is included at thestart of the process. Labor and also overhead are appliedrepetitively throughout the process. All direct departmentaloverhead is traced to the departments, and plant overhead isallocated to the departments on the basis of direct-labor. Theplant overhead price for 20x2 is $.40 per direct-labor dollar.

The following indevelopment relates to manufacturing in the time of November20x2 in the Mixing Department.

a. Work in process, November 1 (4,000 pounds, 75 percentfinish as to conversion):

Raw material.............................................................................................................................................................$22,800

Direct labor at $5.00 per hour.................................................................................................................................24,650

Departpsychological overhead...........................................................................................................................................12,000

Allocated plant overhead.........................................................................................................................................9,860

b. Raw material:

Inventory, November 1, 2,000 pounds................................................................................................................$10,000

Purchases, November 3, 10,000 pounds............................................................................................................51,000

Purchases, November 18, 10,000 pounds..........................................................................................................51,500

Released to production in the time of November, 16,000 pounds

c. Direct-labor price, $103,350

d. Direct departpsychological overhead expenses, $52,000

e. Transferred to Finishing Department, 15,000 pounds

f. Work in process, November 30, 5,000 pounds, 20 percentcomplete

The agency uses weighted-average procedure costing to accumulateproduct prices. However before, for raw-material inventories, the firm usesthe FIFO (i.e., first in, initially out) inventory method.

Required: 1. Prepare a manufacturing report for the MixingDepartment for November 20x2. The report need to show:

a. Equivalent systems of manufacturing by cost element (i.e., directproduct and also conversion).

b. Cost per identical unit for each price aspect. (Round youranswers to the nearemainder cent.)

c. Cost of Chemgro moved to the Finishing Department.

d. Cost of the work-in-process inventory on November 30, 20x2,in the Mixing Department.

2. Prepare journal entries to record the complying with events:

a. Release of direct material to manufacturing during November.

b. Incurrence of direct-labor costs in November.

c. Application of overhead expenses for the Mixing Department(straight departpsychological and allocated plant overhead costs.)

d. Transfer of Chemgro out of the Mixing Department.


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Which of the adhering to statements is not correct concerning multiple overhead price systems?

 

A multiple overhead rate system is even more facility than a mechanism based on a single plantwide overhead price.

A multiple overhead price system is typically more exact than a system based on a solitary plantwide overhead rate.

A company might select to create a sepaprice overhead rate for each of its production departments.

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In departments that are relatively labor-extensive, their overhead prices need to be applied to work based upon machine-hrs rather than on straight labor-hours.