【正文】 therefore, no allocation problem exists. Allocating general condition costs evenly among the housing units may create unit cost distortions. It could be argued that larger homes, for example, would place greater demands on site utilities, insurance, architect’s fees, and deco 99 rating. Allocating these costs on the basis of square footage would likely provide more accurate cost assignments. 5–21 Concluded 4. Production costs .......................... $ 46,578 Marketing costs............................ 800 Total cost ............................... $ 47,378 Selling price = $47,378 140% = $66,329 Profit: ........................................... $ 66,329 47,378 $ 18,951 5–22 1. JobOrder Cost Sheet Job 267 MATERIALS DIRECT LABOR OVERHEAD Kind Amount Emply. Hrs. Rate Amount Hrs. Rate Amount Nov. $1 Dntst $36 $9 $20 $10 Amg. 3 Asst. 6 3 Cost Summary Direct materials ............. $ 4 Direct labor.................... 12 Overhead....................... 10 Tot。 1,500 Unit bid price ............................... $ $ a($ 5,000) + ($ 500). b($ 400) + ($ 3,000). 3. Plantwide Departmental Differences Revenues ................... $ 90,000 $ 362,768 $ 272,768 Cost of goods sold ..... 60,000 241,845 181,845 Gross profit .......... $ 30,000 $ 120,923 $ 90,923 If plantwide overhead is used, only Job 9735 would have been won. Therefore, the revenues and cost of goods sold pertain only to that job. If departmental rates had been used, the bids on both jobs would have been won. Therefore, the revenues and cost of goods sold pertain to both jobs, and gross profit would have gone up by $90,923. 4. The departments differ significantly in their overhead intensity, with department B being much more automated. Jobs spending more time in department B ought to receive more overhead costs. Use of departmental rates provides this oute. 97 5–19 1. Direct materials ($ 100) ............ $ 40 Direct labor ($ 100) .................. 4 Overhead ( $4) ........................... 6 Total cost .................................... $ 50 This spoilage is abnormal and should be added to overhead control. 2. Price = $250 = $375 (Spoilage is not attributable to this job and should not be added to job cost.) 3. Spoilage cost is identical to that puted in Requirement 1. However, in this case, the spoilage is attributable to demanding requirements of the job, and the cost is added to job cost. 4. Price = ($250 + $50) = $450 5–20 1. Direct materials (67 $) .............. $ Direct labor (1 $8) ........................... Overhead (1 $4) .............................. Total cost .................................... $ 2. Direct materials (67 $) .............. $ Direct labor ( $8) ...................... Overhead ( $4) ......................... Total cost .................................... $ The rework cost is not attributable to the job, and is not normal, so it should be assigned to overhead. 3. The price charged is 67 letters $ for a total of $. Note that the rework is not included in the job cost and so it is not included in the price. 98 5–21 1. Land ............................................. $ 7,813* Materials....................................... 8,000 Direct labor................................... 6,000 Subcontractor .............................. 14,000 $ 35,813 *$250,000/8 = $31,250 per acre。 (1,000 $10). 96 5–18 Concluded 2. Bid prices with departmental rates: Rates: Department A: $500,000/200,000 = $ per direct labor hour Department B: $2,000,000/120,000 = $ per machine hour Job 9728 Job 9735 Prime costs ....................................... $ 120,000 $ 50,000 Overhead........................................... 20,835a 51,010b Total costs .................................. $ 140,835 $ 101,010 Markup (50%) .................................... 70,418 50,505 Total bid revenues ....................... $ 211,253 $ 151,515 Units .................................................. 247。 14,400 247。 ($30 10) ..... 750 300 Other ($1 200)。 ($6 20) .......... 90 120 Setups ($70 2)。 76 CHAPTER 5 PRODUCT AND SERVICE COSTING: JOBORDER SYSTEM QUESTIONS FOR WRITING AND DISCUSSION 1. Cost measurement is the process of determining the dollar amounts of direct materials, direct labor, and overhead that should be assigned to production. Cost accumulation (or assignment) is the process of associating costs with the units produced. Essentially, cost measurement is concerned with whether actual or estimated costs should be used, and cost assignment is concerned with whether costs should be assigned to jobs or processes. 2. Actual costing is rarely used because managers cannot wait until the end of the year to obtain product costs. Information on product costs is needed as the year unfolds for planning, control, and decision making. 3. Joborder costing accumulates costs by jobs, and process costing accumulates costs by processes. Joborder costing is suitable for operations that produce custommade products that receive different doses of manufacturing costs. Process costing, on the other hand, is suitable for operations that produce homogeneous products that receive equal doses of manufacturing costs in each process. 4. The principal difference between a manual and an automated system is the nature of the records. In an automated system, terminals can be used to input data directly to the job, thus eliminating the need for many source documents such as time tickets and requisition forms. Even if these forms are used and the data are entered on a batch basis,