• Submitted By: cma157
• Date Submitted: 07/21/2011 3:06 PM
• Words: 445
• Page: 2
• Views: 361

1. Set up T accounts and trace cost flows for actual requisitions and overhead to Job 467. Allocate actual overtime to the job as well (i.e. the job has been done).

452 Data Entry Cost 316.4 Benefits 460.00
48 Over-Time 460 Requisitions
0.00

Work In Process Finished Goods
Data Entry Cost 452.00 COGM 1,276.40
Over-time 48.00
Requisitions 460.00
Benefits 316.40
1,276.40
1276.4 COGM
0.00

(1.4)*(8)+3.3*(12)+8.8*(12)+4*(6)+8.4*(12)+4*(12)+0.7*(8)+7*(12)+4.9*(8)+3.5*(12)
= 500 Total Wages Payable (Data Entry Cost)
4(8*1.5)
= 48 Over-Time Pay
(1.4)*(8)+3.3*(12)+8.8*(12)+4*(6)+8.4*(12)+0.7*(8)+7*(12)+4.9*(8)+3.5*(12)
= 452 Regular Pay

300+60+36+96+-32
= 460 Requisitions (DM)

2. Rather than the present costing system use data entry grades 1, 2 and 3 as separate cost pools to re-estimate the cost and markup of job 467. For each cost pool, include the (i) data entry rate (ii) fringes (iii) overtime (use the annual average overtime rate) and (iv) “other” overhead cost per hour to determine a total hourly cost rate for each of the three data entry categories.