Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

Description / Instructions: Complete the following in WileyPLUS: *Exercise 15-5 *Exercise 16-3 *Exercise 17-1

Question 1

Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $ for the year, and machine usage is estimated at hours.

For the year, $ of overhead costs are incurred and hours are used.

Compute the manufacturing overhead rate for the year. (Roundanswers to 2 decimal places, e.g. 1.25.)

Manufacturing overhead rate

$

per machine hour

What is the amount of under- or overapplied overhead at December 31?

Manufacturing Overhead$

Prepare the adjusting entry to assign the under- or overapplied

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

Question 2

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

Work in Process—Painting

5/1 Balance 5/31 Transferred out ?

5/31 Materials

5/31 Labor

5/31 Overhead

5/31 Balance ?

Production records show that there were units in the beginning inventory, 30% complete, units started, and units transferred out. The beginning work in process had materials cost of $ and conversion costs of $. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

(a) How many units are in process at May 31?

Work in process, May 31

units

(b) What is the unit materials cost for May? (Round unit coststo 2 decimal places, e.g. 2.25.)

The unit materials cost for May$

(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)

The unit conversion cost for May$

(d) What is the total cost of units transferred out in May? (Round answer to 0 decimal places, e.g. 1,225.)

The total cost of units transferred out in May

$

(e) What is the cost of the May 31 inventory? (Round answer to 0 decimal places, e.g. 1,225.)

Work in process $

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

Question 3

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.

Standard Custom

Direct labor costs $ $

Machine hours

Setup hours

Total estimated overhead costs are $. Overhead cost allocated tothe machining activity cost pool is $, and $ is allocated to the machine setup activity cost pool.

Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.)

Predetermined overhead rate

% of direct labor cost

Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. $12.25.)

Machining $ per machine hour

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

Machine setup$

per setup hour

Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. $1,225.)

Traditional costing

Standard$

Custom$

Activity-based costing

Standard$

Custom$

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

Question 1

Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $ for the year, and machine usage is estimated at hours.

For the year, $ of overhead costs are incurred and hours are used.

* Question 1

Your answer is correct.

Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)

Manufacturing overhead rate $ 2.70 per machine hour

* Question 1

Your answer is correct.

What is the amount of under- or overapplied overhead at December 31?

Manufacturing Overhead $ 4,348 Underapplied

* Question 1

Your answer is correct

Attempts: 1 of 3 used

Attempts: 1 of 3 used

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

Cost of Goods Sold $4,348

Manufacturing Overhead $4,348

Question 2

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

Work in Process—Painting

5/1 Balance 5/31 Transferr

ed out?

5/31 Materials

5/31 Labor

5/31 Overhead

5/31 Balance ?

Production records show that there were units in the beginning inventory, 30% complete, units started, and units transferred out. The beginning work in process had materials cost of $ and conversion costs of $. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

* Question 2

Attempts: 1 of 3 used

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

Your answer is correct.

(a) How many units are in process at May 31?

Work in process, May 31 540 units

(b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)

The unit materials cost for May $ 4.80

(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)

The unit conversion cost for May $ 5.08

* Question 2

Your answer is correct.

(d) What is the total cost of units transferred out in May? (Round answer to 0 decimal places, e.g. 1,225.)

The total cost of units transferred out in May $ 14,424.80

(e) What is the cost of the May 31 inventory? (Round answer to 0 decimal places, e.g. 1,225.)

Work in process $ 3,689.28

Question 3

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

Attempts: 1 of 3 used

Attempts: 1 of 3 used

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

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.

Standard Custom

Direct labor costs $ $

Machine hours

Setup hours

Total estimated overhead costs are $. Overhead cost allocated to the machining activity cost pool is $, and $ is allocated to the machine setup activity cost pool.

* Question 3

Your answer is correct

Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.)

Predetermined overhead rate

174.45% of direct labor cost

* Question 3

Your answer is correct.

Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. $12.25.)

Machining $ 73.35 per machine hourMachine setup $ 205.40 per setup hour

Attempts: 1 of 3 used

Attempts: 1 of 3 used

Instructor had to provide missing numbers due to issue in WileyPlus.Answers begin on Page 4

* Question 3

Your answer is correct.

Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. $1,225.)

Traditional costing

Standard $ 103,274Custom $ 200,617 Activity-based costing

Standard $ 126,692Custom $ 177,222

Attempts: 1 of 3 used