ACCOUNTING 349 DeVry University ACCT346 Weekly Assignment Week 2

DeVry UniversityACCT346 Weekly AssignmentWeek 2Directions: Your assignment this week is to answer the three questions below. Please note that Question #3 has 2 parts,Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to thebox if needed.1. Biltz Company uses a predetermined overhead rate based on direct labor hours to allocatemanufacturing overhead to jobs. During the year, the company actually incurred manufacturingoverhead costs of $582,000 and 135,000 direct labor hours were worked. The company estimated thatit would incur $525,000 of manufacturing overhead during the year and that 150,000 direct laborhours would be worked.By how much was manufacturing overhead overallocated or underallocated for the year?2. The following account balances at the beginning of January were selected from the general ledger of OceanWork-in-process inventory$0Raw materials inventory$28,000Finished goods inventory$40,000Additional data:1)2)3)4)5)6)7)Actual manufacturing overhead for January amounted to $62,000.Total direct labor cost for January was $63,000.The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year calleThe only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (80Cost of direct materials placed in production during January totaled $123,000. There were no indirect mateJanuary 31 balance in raw materials inventory was $35,000.Finished goods inventory balance on January 31 was $34,500.What is the cost of goods manufactured for January? Show your work for full credit.3. Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual productionand sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The companyhas traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The totalestimated overhead for the period is $114,300. The company is looking at the possibility of changingto an activity-based costing system for its products. If the company used an activity-based costingsystem, it would have the following three activity cost pools:3a. What is the predetermined overhead allocation rate using the traditional costing system?3b. What is the overhead cost per skateboard using an activity-based costing system?ion #3 has 2 parts,rows or columns to theto allocateanufacturingpany estimated that00 direct laborfor the year?the general ledger of Ocean City Manufacturing Company:he budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.or charges were $5,200 (800 direct labor hours) and total direct material charges were $14,000.here were no indirect material requisitions during January.ull credit.nnual productionold. The companyskates require 2.5nit. The totalbility of changing-based costingal costing system?ng system?overhead costs.