ACCT 346 ACCT346 Week 2 Homework Assignment Solution
ACCT 346 ACCT/346 ACCT346 Week 2 Homework Assignment
Question 1. The Johnson Company applies a predetermined manufacturing overhead rate based on direct labor hours to allocate (or charge) manufacturing overhead costs to the many different production jobs it performs. For the most recent fiscal year, the company originally estimated that it would incur $750,000 in total manufacturing overhead during the year and that a total of 250,000 direct labor hours would be worked. After the year was over, the company subsequently determined it had actually incurred manufacturing overhead costs of $800,000 and 200,000 direct labor hours had been worked during the year.
Question 2. The following account balances and amounts for the month of January were obtained from the general ledger of the Smith Company.
Question 3. The Jones Company manufactures two separate product lines: Segways and Hoverboards. The annual production and sales of Segways is 800 units, while 2,400 Hoverboards are produced and sold each year. The company has been using a traditional, fairly simplistic way of allocating (applying) its total manufacturing overhead costs between the Segway and Hoverboard product lines by simply apportioning its total overhead expenses based upon the number of direct labor hours worked in the factory for each of the two separate products.
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