ACC 561 Wiley week 4 15-5 16-3 17-1

15-5      

Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $353,920 for the year, and machine usage is estimated at 126,400 hours. For the year, $368,283 of overhead costs are incurred and 130,100 hours are used

 

16-3

 

The ledger of Custer Company has the following work in process account.

 

                                                Work in Process—Painting

Production records show that there were 500 units in the beginning inventory, 30% complete, 1,460 units started, and 1,450 units transferred out. The beginning work in process had materials cost of $2,480 and conversion costs of $1,690. The units

 

17-1

Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup.   Presented below is information related to the company’s operations