Premium Essay

Managirial Accounting

In: Business and Management

Submitted By jiajiawu
Words 396
Pages 2
1. Define and explain the meaning of a predetermined manufacturing overhead rate预定的制造间接费that is applied in a job-order costing system订单成本计算.

2. What are the advantages and disadvantages to using the cost of each print as a manufacturing overhead cost driver?

3. Using the information below, compute and interpret the predetermined manufacturing overhead rate for WallDecor. Illustration 1-1 – Information about prints and framed items for Sino-Beauty

Unframed Steel-Framed Print, Wood-Framed Print, Print No Matting with Matting

Volume – expected units sold 80,000 15,000 7,000

Cost Elements
Direct Materials Print (expected average Cost for each of the three categories) 12 Yuan 16 Yuan 20 Yuan

Frame and glass 4 Yuan 6 Yuan

Matting 4 Yuan

Direct Labor Picking time 10 minutes 10 minutes 10 minutes

Picking labor rate/hour 12 Yuan 12 Yuan 12 Yuan

Matting and framing time 20 minutes 30 minutes

Matting and framing rate/hour 21 Yuan 21 Yuan Illustration 1-2 – Manufacturing overhead budget for Sino-Beauty

Manufacturing Overhead Budget (in RMB)

Supervisory salaries 100,000
Factory rent 130,200
Equipment rent (framing and matting equipment) 50,000
Utilities 20,000
Insurance 10,000
Information technology 50,000
Building maintenance 11,000
Equipment maintenance 4,000 375,200

4. Compute the product cost for the following three items.
a. Yao Ming unframed print (base cost of print 12 Yuan).3.36+12+2=17.36
b. Jackie Chan print in steel frame, no mat (base cost of print 16 Yuan).4.48+16+4+2+7=33.48
c. Jet Li print in wood frame with mat (base cost of print 20 Yuan).5.6+20+6+4+2+10.5=48.1

5. (a) How much of the total overhead cost is expected to be allocated to unframed prints?
(b) How much of the total overhead cost is expected to...

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