1 A A B B&G S

42,000.00 51,000.00 21,960.40 15,990.00

B&G 6,069.80 15,890.60 - 21,960.40
S 10,250.00 5,740.00 - - 15,990.00
Total FOH 58,319.80 72,630.60 - -
Base 1,925.00 1,200.00
FOH rate 30.30 60.53

2 B BG = 21,960.40 + 0.037S
S = 15,990 + 0.0388BG

BG = 21,960.40 + 0.037(15,990 + 0.0388BG)

BG = 21,960.40 + 591.63 + 0.0014BG
BG = 22,552.03 + 0.0014BG
BG - 0.0014BG = 22,552.03
0.9986BG = 22,552.03
0.9986 0.9986
BG =22,584

3 C Actual FOH 37,000.00

Less: Budget allowed based on hours used
Fixed 30,000.00
Variable 11,000.00 41,000.00
Spending variance - 4,000.00

4 C Budget allowed based on hours used 41,000.00

Applied FOH:
Fixed 15.00 33,000.00
Variable 5.00 11,000.00 44,000.00
Production variance - 3,000.00

C D A B
15,000.00 20,000.00 80,000.00 60,000.00
5 C A 60,619 30,309.28 - 101,030.93 10,103.09
6 C B 14,021 35,051.55 21,030.93 - 70,103.09
Total FOH 89,639.18 85,360.82 - 0.00 0.00

A = 80,000 + .30B
B = 60,000 + .10A

A = 80,000 + .30(60,000 +.10A)

A = 80,000 + 18,000 +.03A
A = 98,000 +.03A
A - .03A = 98,000
 .97A = 98,000
.97 .97
A = 101,030.93

B = 60,000 + .10(101,030.93)
B = 60,000 + 10,103.09
B = 70,103.09

7 C Dept A Dept B Total

FOH 115,000.00 85,000.00 200,000.00
Base 10,000.00 5,000.00 15,000.00
Rate 11.50 17.00 13.33

8 A Dept A Dept B
FOH 115,000.00 85,000.00
Base 10,000.00 10,000.00
Rate 11.50 8.50

9 D Actual FOH 153,500.00

Applied FOH 150,000.00
Underapplied FOH 3,500.00

10 D Applied MOH 110,000.00

Predetermined rate 0.80
Actual DL hrs 137,500

11 D Actual OH 63,800.00
Applied OH 61,200.00
Underapplied 2,600.00

Est. MHrs 42,000.00

Predetermined rate 1.50
Estimated OH 63,000.00

12 A Actual 387,875.00
Applied 400,525.00
Overapplied FOH - 12,650.00

Factory rent 215,000.00

Depreciation 38,000.00
Total fixed FOH 253,000.00
Variable FOH 180,000.00
 Total est FOH 433,000.00
Est MHrs 80,000.00
OH rate 5.41

13 C C D A B
15,000.00 20,000.00 80,000.00 60,000.00
A 60,619 30,309.28 - 101,030.93 10,103.09
B 35,051.55 14,020.62 21,030.93 - 70,103.09

A = 80,000 + .30B
B = 60,000 + .10A

A = 80,000 + .30(60,000 + .10A)

A = 80,000 + 18,000 + .03A
A - .03A = 98,000
.97A = 98,000
.97 .97
A = 101,030.93

B = 60,000 + .10A
B = 60,000 + .10(101,030.93)
B = 60,000 + 10,103.09
B = 70,103.09

14 C Actual FOH 459,000.00

Applied FOH 420,000.00
Underapplied OH 39,000.00

Budgeted FOH 384,000.00

Budgeted DL cost 320,000.00
FOH rate 120%

15 C Direct method Printing Laminating Personnel Maintenance

93,000.00 68,000.00
Personnel 37,200.00 55,800.00 - 93,000.00
Maintenance 40,800.00 27,200.00 - 68,000.00
Allocated FOH 78,000.00 83,000.00

Step method Printing Laminating Personnel Maintenance

93,000.00 68,000.00
Personnel 31,000.00 46,500.00 - 93,000.00 15,500.00
Maintenance 50,100.00 33,400.00 - 83,500.00
Allocated FOH 81,100.00 79,900.00
16 A -

17 B Dept 1 Dept 2 Supervision Eqpt

Supervision 350,000.00 450,000.00 35,000.00 30,000.00
Eqpt
Bldg 13,500.00 16,500.00 - 30,000.00

18 D Dept 1 Dept 2 Supervision Eqpt

19 A Supervision 350,000.00 450,000.00 35,000.00 30,000.00
Eqpt 31,500.00 40,500.00 9,000.00 9,000.00
Supervision 18,526 20,842.11 - 44,000.00 4,631.58

20 D Underapplied OH 45,000.00
Fraction 720/864
Allocated to COGS 37,500.00
COGS, unadjusted 720,000.00
COGS, adjusted 757,500.00

21 P1 P2 S1 S2
50,000.00
S1 30,000.00 ?
S2 ? 15,000.00 - 50,000.00
0.50 0.30 0.20

Costs allocated to P2 from S2 15,000.00

Divide: Percent share from services 30%
S2 total service costs 50,000.00

22 B
Workers 20
Wage rate 10.50
Hours worked - 1010 40
WIP - Job 1010 8,400

Workers 8
Wage rate 7.50
Hours worked - 1010 20
WIP - Job 1010 1,200

Hours worked - 1011 20

WIP - Job 1011 1,200
 Kyle Motus
Hours worked - 1010 16
Wage rate 9.25
WIP - Job 1010 148.00

Idle hours 4.00

Wage rate 9.25
FOH control 37.00

Supervisor's salary 1,250.00

WIP - Job 1010 9,748.00

WIP - Job 1011 1,200.00
FOH control 1,287.00
Payroll payable 12,235.00

23 Regular 40 hrs 24.00 960.00

Overtime 4 hrs 36.00 144.00
Weekly earnings 1,104.00

24 Beg RM 100,000.00
RM purchased 135,000.00
Indirect materials - 20,000.00
Ending RM - 175,000.00 40,000.00
Direct labor 692,500.00
FOH control 227,500.00
Total MC 960,000.00

25 Actual earnings Guarantee Gross pay

R 753.75 875.00 875.00
O 877.50 875.00 877.50
L 900.00 875.00 900.00
A 922.50 875.00 922.50
N 810.00 875.00 875.00
D 843.75 875.00 875.00
Payroll 5,325.00

26 A Minimum guarantee 420.00

Actual earnings 588.00 Higher

Piece rate 42.00

Work in process 588.00

 Accrued payroll 588.00

No FOH control because the actual earnings is higher than the minimum guarantee.
You should charge as Work in Process the actual direct labor incurred.
favorable

favorable
 Bldg
90,000.00

Bldg
90,000.00
- 90,000.00
0

80,000.00