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  • 1.  CMA Part 2 Gleim page 321 question 5 ch 10

    Posted 03-24-2019 09:53 PM
    Hello all,

    I am currently studying for part 2 using Gleim.  I cannot understand the MCQ in ch 10 in the end of the chapter.  For MCQ #5 how is the problem calculating the $3 for overhead?  I understand the cost of labor and ​direct material, but I do not understand how the overhead of $3 is being calculated from the problem on page 320

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    Amedee Barry
    Accountant
    South Pasadena CA
    United States
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  • 2.  RE: CMA Part 2 Gleim page 321 question 5 ch 10

    Posted 03-25-2019 04:30 AM
    Hi Barry could you share the question information more in detail. Because i too used Gleim but mine was online and didnt get any hard copy

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    Ajay Takiar
    Academic
    Ulaanbaatar
    Mongolia
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    Original Message


  • 3.  RE: CMA Part 2 Gleim page 321 question 5 ch 10

    Posted 03-25-2019 04:57 AM

    MOH is 18 per standard DLH consists of ( VOH $6+ FOH $12)
    Each unit taking 1/2 hour in production, so divide the variable overhead on 2 to reach to variable overhead per unit equal $3. For more explanation please find the below attached.




    Original Message


  • 4.  RE: CMA Part 2 Gleim page 321 question 5 ch 10

    Posted 03-25-2019 05:01 AM
    Hi

    MOH is 18 per standard DLH consists of ( VOH $6+ FOH $12)
    Each unit taking 1/2 hour in production, so divide the variable overhead on 2 to reach to variable overhead per unit equal $3. For more explanation please find the below attached.



    Original Message


  • 5.  RE: CMA Part 2 Gleim page 321 question 5 ch 10

    Posted 03-25-2019 08:49 AM
    hi，
    The overhead is $18 per direct labor hour, $6 direct labor hours per unit. Therefore overhead is $3 per unit, (18/6=3, both fixed & Variable ), since the company was operating under capacity before the special order, only the additional fixed overhead,$0.4 per unit is extra, thus the total unit cost is 14.4 (5+6+3+0.4)
    Hope that helps
    Sylvia

    Sent from my iPhone


    Original Message


  • 6.  RE: CMA Part 2 Gleim page 321 question 5 ch 10

    Posted 03-27-2019 09:56 AM
    Sorry Barry was a little busy with work.
    If you look at page 320, where they give you all of the numbers for Glascow, it indicates that the Manufacturing Overhead is applied at $18/hour, and then it gives you the breakdown.  Variable is $6 dollars of the $18 dollars, which means that 33% of the manufacturing overhead is variable, so you apply that 33% to the $9 manufacturing overhead to get $3.
    Hope this makes sense.

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    Shepal Patel CFE
    Controller
    Rossmoor CA
    United States
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    Original Message