Posted: February 5th, 2019

ACC 561 Wiley Plus Week 4 Exercises 15-5, 16-3, and 17-1

Exercise 15-5Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $325,780 year, and machine usage is estimated at 125,300 hours.year, $346,819 of overhead costs are incurred and 131,400 hours are used.Exercise 16-3The ledger of Custer Company has the following work in process account.Work in Process—Painting5/1Balance4,3105/31Transferred out?5/31Materials5,9805/31Labor4,1005/31Overhead1,6005/31Balance?Production records show that there were 470 units in the beginning inventory, 30% complete, 1,560 units started, and 1,440 units transferred out. The beginning work in process had materials cost of $2,610 and conversion costs of $1,700. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.Exercise 17-1Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.StandardCustomDirect labor costs$54,900$111,000Machine hours1,3601,260Setup hours97420Total estimated overhead costs are $301,200. Overhead cost allocated to the machining activity cost pool is $196,000, and $105,200 is allocated to the machine setup activity cost pool.