Marblex manufactures marble statues. In March, the two productiondepartments had budgeted allocation bases of...

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Accounting

Marblex manufactures marble statues. In March, the two productiondepartments had budgeted allocation bases of 4,000 machine-hours inDepartment X and 8,000 direct manufacturing labor-hours inDepartment Y. The budgeted manufacturing overheads for the monthwere $60,000 and $64,000, respectively. For Job A, the actual costsincurred in the two departments were as follows:
                                                                                   DepartmentX          DepartmentY
    Direct materials purchased onaccount           $110,000                    $177,500
    Direct materials used                                           40,000                        13,500
    Direct manufacturing labor                                    55,000                        53,500
    Indirect manufacturing labor 11,000                           9,000
    Indirect materials used 5,000                           4,750
    Lease on equipment    16,250                           3,750
    Utilities1,000                           1,250
Job A incurred 800 machine-hours in Department X and 300manufacturing labor-hours in Department Y. The company uses abudgeted overhead rate for applying overhead to production.
Required:
a.    Determine the budgeted manufacturing overheadrate for each department.
b.    Prepare the necessary journal entries tosummarize the March transactions for Department X.
c.     What is the total cost of Job A?

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1 Budgeted Manufacturing Overhead Rate for each Department Particulars Dept X Dept Y Direct Manufacturing Labor Hours a 4000 8000 Budgeted Manufacturing Overheads b 60000 64000 See Answer

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In: AccountingMarblex manufactures marble statues. In March, the two productiondepartments had budgeted allocation bases of 4,000...Marblex manufactures marble statues. In March, the two productiondepartments had budgeted allocation bases of 4,000 machine-hours inDepartment X and 8,000 direct manufacturing labor-hours inDepartment Y. The budgeted manufacturing overheads for the monthwere $60,000 and $64,000, respectively. For Job A, the actual costsincurred in the two departments were as follows: DepartmentX DepartmentY Direct materials purchased onaccount $110,000 $177,500 Direct materials used 40,000 13,500 Direct manufacturing labor 55,000 53,500 Indirect manufacturing labor 11,000 9,000 Indirect materials used 5,000 4,750 Lease on equipment 16,250 3,750 Utilities1,000 1,250Job A incurred 800 machine-hours in Department X and 300manufacturing labor-hours in Department Y. The company uses abudgeted overhead rate for applying overhead to production.Required:a. Determine the budgeted manufacturing overheadrate for each department.b. Prepare the necessary journal entries tosummarize the March transactions for Department X.c. What is the total cost of Job A?