Posted: February 10th, 2017

# Discuss the over/under assignment of costs based on actual time used. Once the actual time is known, you can determine the amount of over-applied or under-applied manufacturer overhead. Explain your calculation.

Managerial Accounting – Project Select a product you wish to bake. You may work with one other individual. Submit idea to Instructor for approval. Determine what ingredients you would need and price them at your local store. Prepare a Materials Requisition Slip for the items. Company Name:

Materials Requisition Slip Req. No.

Deliver to: Mixing Department Date:

Charge to: Work in Process – Job No. 101

Quantity Description Cost Per Unit Total Cost

Example: • Flour: Entire bag will cost you less than \$2, but you probably will only use about \$.75 worth. • Chocolate Chips: One bag, \$1.29 • Butter, One pound package is \$2, but you only need half at \$1 Prepare a Time Ticket for the labor used. Labor is to be charged at \$8.50 per hour. Assign your manufacturing overhead based on estimated direct labor hours, i.e. using a predetermined overhead rate. Calculate the rate based on the estimated overhead costs of monthly rent \$300, monthly utilities \$50, and any estimated indirect labor along with your estimated direct labor hours. Include any estimated indirect labor. Company Name: Daily Time Sheet

Date Admin Direct Start/Stop Time Job Name Task Client Hours Labor Hours Managerial Accounting

Complete a Job Cost Sheet for each item you are making.