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Author Question: Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to ... (Read 77 times)

Jipu 123

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on: Mar 6, 2021

Question 1

Actual (rather than allocated) manufacturing overhead costs are first recorded in the ________.
◦ Work-in-Process Control account
◦ Finished Goods Control account
◦ Manufacturing Overhead Control account
◦ Cost of Goods Sold account

Question 2

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year:

MachiningAssembly
Direct labor-hours60,00070,000
Machine-hours20,00030,000
Direct labor cost$450,000$750,000
Manufacturing overhead costs$300,000$210,000

The accounting records of the company show the following data for Job #316:

MachiningAssembly
Direct labor-hours12075
Machine-hours605
Direct material cost$350$100
Direct labor cost$350$450

For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining Department?
◦ $3.00
◦ $6.00
◦ $5.00
◦ $15.00
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Jipu 123 on Mar 6, 2021

angrybirds13579

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Reply #1 on: Mar 6, 2021
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Jipu 123

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

Joy Chen

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Reply 3 on: Yesterday
Gracias!

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