This topic contains a solution. Click here to go to the answer

Author Question: Shotter Manufacturing is a small textile manufacturer using machine-hours to calculate the single ... (Read 127 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
Shotter Manufacturing is a small textile manufacturer using machine-hours to calculate the single indirect-cost rate to allocate manufacturing overhead costs to various jobs contracted during the year.
 
  The following estimates are provided for the coming year for the company and for the jackets to be made for Jackson High School Science Olympiad.
 
   Company Jackson High School Job
  Direct materials 25,000 600
  Direct manufacturing labor 5,000 150
  Manufacturing overhead costs 30,000
  Machine-hours (mh) 50,000 mh 800 mh
 
  Required:
  a. For Shotter Manufacturing, determine the annual manufacturing overhead cost-allocation rate.
  b. Determine the amount of manufacturing overhead costs allocated to the Jackson High School job.
  c. Determine the estimated total manufacturing costs for the Jackson High School job.

Question 2

Explain the meaning of: (a) the objectivity concept (b) the unit of measure concept



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mirabriestensky

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

Answer:
a. Manufacturing overhead cost-allocation rate = 0.60 per mh
= 30,000/50,000 mh

b. 480 estimated manufacturing overhead costs = 800 mh  0.60 per mh

c. Direct materials 600
Direct manufacturing labor 150
Manufacturing overhead costs 480
Estimated total manufacturing costs 1,230

Answer to Question 2

(a) The objectivity concept requires that the amounts recorded in the accountingrecords be based on objective evidence. In exchanges between a buyer and aseller, both try to get the best price. Only the final agreed-upon amountis objective enough to be recorded in the accounting records.

(b) The unit of measure concept requires that economic data be recorded indollars. Money is a common unit of measurement for entering financial data andpreparing reports.




pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jul 5, 2018
:D TYSM


lindahyatt42

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

For a complete list of videos, visit our video library