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Ryan company produces pipes for concert-quality organs. Each job is unique. In april 2012 it completed all outstanding orders, and then in May 2012 it worked on only two jobs M1 and M2:
Direct materials for job M1 was 70,000 and job M2 was 57000. Direct manufacturing labor for job M1 was 270,000 and for M2 was 204,000
Direct manufacturing labor is paid at the rate of $24 per hour. Manufacturing overhead costs are allocated at a budget rate of $22 per direct manufacturing labor hour. Only job M1 was completed in May
a. Calculate the total cost for job M1.
b. If 1,1000 pipes were produced the cost per each pipe for job M1 is?
c. Ryan companys work in process control account has an ending balance of what, at the end of may 2012
2. The Ride-on-Wonder company produces a line of non motorized boats. Row uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor costs. The following data are for 2012:
Budgeted manufacturing overhead cost = 135000
budgeted direct manufacturing labor cost = 225000
actua manufacturing overhead cost = 131800
actual direct manufacturing labor cost = 228000
1. What is the equation to find overhead allocation rate, and what is the rate
2. what is the equation to find underallocated (overallocated) and what is the rate.
No work is needed just the answers.
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