Marblex manufactures marble statues. In March, the two production ...

[vHAUNG6011]

Marblex manufactures marble statues. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department X and 8,000 direct
 
  manufacturing labor-hours in Department Y. The budgeted manufacturing overheads for the month were 60,000 and 64,000, respectively. For Job A, the actual costs incurred in the two departments were as follows:
 
   Department X Department Y
   Direct materials purchased on account 110,000 177,500
   Direct materials used 40,000 13,500
   Direct manufacturing labor 55,000 53,500
   Indirect manufacturing labor 11,000 9,000
   Indirect materials used 5,000 4,750
   Lease on equipment 16,250 3,750
   Utilities 1,000 1,250
 
  Job A incurred 800 machine-hours in Department X and 300 manufacturing labor-hours in Department Y. The company uses a budgeted overhead rate for applying overhead to production.
 
  Required:
  a. Determine the budgeted manufacturing overhead rate for each department.
  b. Prepare the necessary journal entries to summarize the March transactions for Department X.
  c. What is the total cost of Job A?

Question 2

The erroneous moving of an entire number one or more spaces to the right or left, such as writing 85 as 850, iscalled a transposition.
 a. True
  b. False
 
   Indicate whether the statement is true or false

[matt95]

Answer to Question 1

Answer:
a. Manufacturing overhead rate Department X = 60,000/4,000 hours
= 15 per machine-hour

Manufacturing overhead rate Department Y = 64,000/8,000 hours
= 8 per labor-hour

b. Materials Control Department X 110,000
Accounts Payable Control 110,000

Work-in-Process Control Department X 40,000
Manufacturing Overhead Control Department X 5,000
Materials Control Department X 45,000

Work-in-Process Control Department X 55,000
Manufacturing Overhead Control Department X 11,000
Wages Payable Control 66,000

Manufacturing Overhead Control Department X 17,250
Leaseholds Payable Control 16,250
Utilities Payable Control 1,000

Work-in-Process Control Department X 12,000
Manufacturing Overhead Allocated 12,000
(15  800 hrs)

c. Job A:
Direct materials Dept. X  40,000
Direct materials Dept. Y 13,500
Direct manufacturing labor Dept. X 55,000
Direct manufacturing labor Dept. Y 53,500
Manufacturing overhead Dept. X (15  800) 12,000
Manufacturing overhead Dept. Y (8  300) 2,400
Total 176,400

Answer to Question 2

False

[vHAUNG6011]

Wow, this really help

[isabelt_18]

Thanks for the timely response, appreciate it