' Show Notebook Both Jobs 500 and 501 used $1,200 of direct materials. Wages and benefits total $30 per direct labour hour. Cortana Products prices
I would like to know all answer of question "P7-43B."
' Show Notebook Both Jobs 500 and 501 used $1,200 of direct materials. Wages and benefits total$30 per direct labour hour. Cortana Products prices its products at 130% of totalmanufacturing costs. Requirements El 9 1. Compute Cortana Products’ current plantwide overhead rate. 2. Compute refined departmental overhead rates. 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain.4 . Compute the total amount of overhead allocated to each job based on the currentplantwide overhead rate. 5. Compute the total amount of overhead allocated to each job based on the departmentaloverhead rates. 6. Do both allocation systems accurately reflect the resources that each job used? Explain. 7. Compute the total manufacturing cost and sales price of each job based on the currentplantwide overhead rate. 8. Based on the current (plantwide) allocation system, how much profit did CortanaProducts think it earned on each job? Based on the departmental overhead rates andthe sales price determined in Requirement 7, how much profit did it really earn oneach job? 9. Compare and comment on the results you obtained in Requirements 7 and 8. “i“ . ‘j 3‘ .l i 1, (Learning Objective 2) Johnston’s Office Department manufactures computer desks in its Brandon, Manitoba, plant. The company uses activity-based costing to allocate all manufacturing conversioncosts (direct labour and manufacturing overhead). Its activities and related data follow: Budgeted Cost Allocation CostActivity of Activity Base Allocation RateMaterials handling ................................. $ 300,000 Number of parts $ 0.60Assembling ............................................ 2,500,000 Direct labour hours 13.00 Painting ................................................. 170,000 Number of painted desks 5.30
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