Академический Документы
Профессиональный Документы
Культура Документы
$
$
5,730,000
84,000
84,000
84,000
actual
To close:
Balance:
To prorate over/under applied MOH: need proportionate amounts of WIP, FG, & COGS:
WIP
$
576,000
0.192 x 84,000
FG
$
624,000
0.208 x 84,000
COGS
Total
$
$
1,800,000
3,000,000
Exercise 4.15
Plantwide OH rate:
Applied to products
DM
DL
MOH
Cost per unit
MOH per unit
ABC costing: rates:
setups
ordering
machining
receiving
Applied to products
0.6 x 84,000
1
$
$
$
$
$
$
1,560,000
2,640,000
165.00
97.50
$
$
$
$
800.00
20.00
20.00
40.00
Model A
$
$
$
$
per
per
per
per
Model B
800,000
###
520,000
1,800,000
225.00
65.00
setup
order
MH
receiving hr.
Model B
DM
DL
MOH: setups
MOH: ordering
MOH: machining
$
$
$
$
$
600,000
480,000
320,000
120,000
480,000
$
$
$
$
$
800,000
480,000
160,000
240,000
360,000
MOH: receiving
$
$
$
$
120,000
2,120,000
132.50
65.00
$
$
$
$
280,000
2,320,000
290.00
130.00
2.00
Problem 4.28
Plantwide rate based on DLH:
$
$
148,800 $
436,800 $
1,080,000
1,168,320
Journal Entry:
COGS
MOH Control
Problem 4.29
Plantwide rate based on DLH:
Costs for each product using single rate:
DM + DL
MOH: 75,000 DLH each
Total Unit Cost
30.00
Standard
150.00
$
$
75.00
225.00
Break down total MOH into 7 cost pools with 7 cost drivers for 7 rates for applying MOH:
Maintenance
Engineering
Materials Handling
Setups
Purchasing
Receiving
Paying Suppliers
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Pay.
Total MOH costs
MOH per unit
20
20
20
1,250
200
40
40
Standard
150.00
120,000
270,000
300,000
75,000
150,000
120,000
$
$
$
$
150,000
1,185,000
39.50
189.50
225.00
84,000 Bal.
84,000
0
ENTRY:
MOH Control
WIP
50,400
84,000
FG
COGS
Consumption Ratios:
Driver
DLH: overall rate
$ 84,000
$ 16,128
$ 17,472
$ 50,400
Model A Model B
0.75
0.25
Setups
0.666667 0.333333
Ordering
Machining
Receiving
0.333333 0.666667
0.571429 0.428571
0.3
0.7
The point: the plantwide rate, using DLH, assigns overhead in a ratio of 75% to A an
Using the four cost pools, you can see that none of them are very close to that ratio
quite a bit of consumption diversity (ranging from .67 to .3 for Model A and ranging
for Model B). I put the percentage of total MOH for each pool to show that the majo
(over 60%) are consumed by model A in greater proportion to B, but that a little ov
disproportionately by Model B.
Even so, assigning 75% of all overhead costs to Model A significantly overcosts A an
It would be even more overcosted if a larger percentage of the overhead costs were
proportion by model B.
1536000
384000
1152000
$
$
$
MOH Control
$
$
$
26,880
$
Deluxe
350.00
150.00
500.00
26,880
maintenance hrs.
engineering hrs.
number of moves
number of setups
number of requisitions
number of orders
number of invoices
$
$
$
$
$
$
$
$
$
$
$
Deluxe
350.00
480,000
630,000
900,000
675,000
300,000
180,000
150,000
3,315,000
221.00
571.00
The difference in unit cost might be considered fairly significant.
500.00
$
$
Cost
2,080,000
480,000
23%
$
360,000
17%
$
840,000
40%
$
400,000
19%
$
2,080,000
d in a ratio of 75% to A and 25% to B.
e very close to that ratio. There is
for Model A and ranging from .7 to .33
ool to show that the majority of costs
to B, but that a little over 1/3 are consumed