Indirect Cost Application in Manufacturing
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ScribdTranslationsIndirect Cost Application in Manufacturing
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ScribdTranslationsProblem 4-1 APPLICATION RATES OF INDIRECT COSTS
MANUFACTURING: NORMAL AND MAXIMUM CAPACITIES.
Prunka's Pranks, Inc. manufactures toys and sells them to retail stores Games-R-Fun across the
territory of the United States. In 19X9, the company estimated that the maximum capacity for
Ready-Set-Go, a new and promising toy, would be 170,000 units. The normal capacity
For this toy in 19X9, it was 135,000 units. The actual production was 142,575 units.
The estimated manufacturing overhead costs for Ready-Set-Go during the year were:
The company's analysts used the following data from normal capacity in order to
establish a basis for applying manufacturing overhead costs during 19X9:
A). - Based on the normal capacity for 19X9, calculate the total manufacturing overhead cost.
estimado para Ready-Set-Go. Determine la tasa utilizada durante el año para aplicar los costos
indirect manufacturing costs and calculate the total applied indirect manufacturing costs, using
each of the following bases:
B). - Calculate the same items required in (a), using maximum capacity instead of the
normal capacity.
PROBLEM 4-4 APPLICATION RATES OF THE COSTS
MANUFACTURING OVERHEAD: APPLIED and SUBAPPLIED.
Data for 19X8:
Department A uses machine hours as a basis to apply indirect costs of
manufacturing; department B uses direct labor costs; and department C
use direct labor hours.
A. Calculate the predetermined overhead application rates.
for each of the departments.
B. Determine the applied indirect manufacturing costs during October of 19X8, with
based on the following real data for that month:
C. What would be the overapplied or underapplied manufacturing overhead costs if the
actual indirect manufacturing costs of 19X8 for departments A, B, and C were
US$57,500, US$45,400, and US$60,000, respectively? Assume that the indirect costs
estimated manufacturing costs are equivalent to the applied manufacturing overhead costs in
19X8.
D. Record the actual and applied indirect manufacturing costs in 19X8 for department B
utilizando una cuenta de costos indirectos de fabricación aplicados y el control de costos.
PROBELA 4-6 COST DISTRIBUTION: DEPARTMENTS OF
SERVICES
Maynard Company has three service departments and two production departments. The company
Currently, various methods for the budgeted costs are being evaluated.
service departments for production. Therefore, the following has been prepared
information for the month of August of the year 19X8.
The costs of the factory administration departments and of buildings and land are allocated
Based on the total hours of labor and square feet, respectively. However,
the costs of the factory maintenance department are allocated based on the percentage of
servicio prestado: 33% para edificios y terrenos, 35% para ensamblaje y 32% para máquinas.
A.- Suppose that factory maintenance is assigned first, then factory administration, and finally buildings.
and land. Allocate the total costs of the service departments to production,
by means of:
1.- The direct method
2.- The stepped method
B.- Determine the application rates of manufacturing overhead costs for the
production departments.
The bases used are machine hours, with 400,000 estimated hours for machines and 300,000.
for assembly.