A job cost sheet of Sandoval Company is given below. Job Cost Sheet
JOB NO. 469 Quantity 2,500
ITEM White Lion Cages Date Requested 7/2
FOR Todd Company Date Completed 7/31
Date Direct Direct Labor Manufacturing
Materials Labor Overhead
7/10 700
12 900
15 440 550
22 380 475
24 1,600
27 1,500
31 540 675
Cost of completed job:
Direct materials
Direct labor
Manufacturing overhead
Total cost
Unit cost
(1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
Source Documents
Direct materials pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
Direct labor pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
Manufacturing overhead pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
(2) What is the predetermined manufacturing overhead rate? (Round answer to 0 decimal places e.g 135.)
Predetermined manufacturing overhead rate pixel.gif %
(3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.)
Total cost of the completed job $pixel.gif
Unit cost of the completed job $pixel.gif

A. Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

B. 125%

C. Total cost $7,760

Unit cost $3.104

Explanation:

1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :

Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

2. Calculation to determine the predetermined manufacturing overhead rate

Predetermined overhead rate=$550/$440*100

Predetermined overhead rate=125%

Therefore the predetermined manufacturing overhead rate is 125%

3. Calculation to determine the total cost and the unit cost of the completed job

TOTAL COST

Direct Material $4, 700

($700 + $900 + $1,600 + $1,500)

Add Direct Labor $1,360

($440 + $380 + $540)

Add Manufacturing Overhead $1,700

($550 + $475 + $675)

Total Cost $7,760

UNIT COST

Unit cost= $7,760/ 2,500

Unit cost=$3.104

Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104

During the control function, the measurements taken of the performance must be accurate enough to see "deviations and variances".

Option: B

Explanation:

One object of control charts is to calculate a process's average and standard deviation. Control functions or two-stage residual inclusion are statistical methods for resolving problems with endogeneity by modeling the endogeneity in the context of error.

A specific reason behind the commonness is they function for non-invertible models like discrete choice models and allow heterogeneous effects, whereby consequences at the individual level will vary from aggregate effects. The control chart analysis shows that the procedure is actually under control, and then no improvements or adjustments to the control systems parameters are necessary or needed.