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ACC 206 Week 3 Assignment Chapter 4 and 5 Problems

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Accounting

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Homework

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ACC 206 Week 3 Assignment: Chapter 4 and 5 Problems
Please complete the following 7 exercises below in either Excel or a word
document (but must be single document). You must show your work where
appropriate (leaving the calculations within Excel cells is acceptable). Save the
document, and submit it in the appropriate week using the Assignment Submission
button.
Chapter 4 Exercise 7
7. Overhead application: Working backward
The Towson Manufacturing Corporation applies overhead on the basis of
machine hours. The following divisional information is presented for your review:
|Division A |Division B | |Actual machine hours |22,500 |? | |Estimated machine
hours |20,000 |? | |Overhead application rate |$4.50 |$5.00 | |Actual overhead
|$110,000 |? | |Estimated overhead |? |$90,000 | |Applied overhead |? |
$86,000 | |Over- (under-) applied overhead
Division A:
Estimated Overhead = Estimated Machine Hours * Overhead Application Rate
Estimated Overhead = 20,000 * $4.50
Estimated Overhead
$90,000.00
Applied Overhead = Actual Machine Hours * Overhead Application Rate
Applied Overhead = 22,500 * $4.50
Applied Overhead
$101,250.00

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Under Applied Overhead = Applied Overhead - Actual Overhead
Under Applied Overhead = $101,250 - $110,000
Under Applied Overhead
-$8,750.00 |? |$6,500 | |Find the unknowns for each of the divisions.
Chapter 4 Problem 2
2. Computations using
a job order system
General Corporation employs a job order cost system. On May 1 the following
balances were extracted from the general ledger;
Work in process $ 35,200
Finished goods 86,900
Cost of goods sold 128,700
Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800).
During May, direct materials requisitioned from the storeroom amounted to $96,500,
and direct labor incurred totaled $114,500. These figures are subdivided as follows:
Direct Materials
Direct Labor
Job No.

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Amount
Job No.
Amount
101
$5,000
101
$7,800
115
19,500
103
20,800
116
36,200
115

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