15. Hartwell Company distributes the service department overhead cost directly to producing departmentswithout allocation to the other service department. Information for the month of June is as follows:Service DepartmentUtilitiesP10,000MaintenanceOverhead incurredP20,000Service provided to departments:MaintenanceUtilities10%20%Producing Dept. -AProducing Dept. – BThe amount of maintenance department costs is distributed to Producing Dept. A for June wasa. P8,00030%60%40%40%b. P10,000c. P11,000d. None of theses

Utilities cost allocated to Maintenance = P10,000 x 10%…

15. Hartwell Company distributes the service department overhead cost directly to producing departments without allocation to the other service department. Information for the month of June is as follows: Service Department Utilities Maintenance P20,000 Overhead incurred P10,000 Service provided to departments: Maintenance 10% Utilities 20% 40% 30% 60% Producing Dept. - A Producing Dept. - B The amount of maintenance department costs is distributed to Producing Dept. A for June was a. P8,000 40% b. P10,000 C. P11,000 d. None of theses

15. Hartwell Company distributes the service department overhead cost directly to producing departments without allocation to the other service department. Information for the month of June is as follows: Service Department Utilities Maintenance P20,000 Overhead incurred P10,000 Service provided to departments: Maintenance 10% Utilities 20% 40% 30% 60% Producing Dept. - A Producing Dept. - B The amount of maintenance department costs is distributed to Producing Dept. A for June was a. P8,000 40% b. P10,000 C. P11,000 d. None of theses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5) Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Machining Assembly 80,000 40,000 20,000 20,000 $550,000 $900,000 $480,000 $280,000 The accounting records of the company show the following data for Job #316: Direct labor-hours Machine-hours Direct material cost Direct labor cost Machining 120 Assembly 55 50 5 $250 $150 $125 $375 What are the total manufacturing costs of Job #316? A) $1,885.00 B) $2,085.00 C) $2,485.00 D) $900.00
Mai Ling Inc., incurred the following actual overhead costs for the month of March: Account Cost Indirect materials 8,000 Indirect labor 25,000 Factory equipment depreciation 6,000 Factory building rent 7,000 Environmental compliance costs 5,000 Overhead is applied based on a predetermined rate of $10 per direct labor hour, and 6,000 direct labor hours were used during March. The balance of the T account for Manufacturing Overhead (MOH) would show which of the following? Group of answer choices $9,000 of debit balance of overallocated MOH $14,000 of debit balance of under allocated MOH $14,000 of credit balance of overallocated MOH $9,000 of credit balance of overallocated MOH
During the year, 3,600 units were produced, 14,500 hours were worked, and the actual manufacturing overhead was $49,000. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 15.25.) Variable manufacturing overhead $ Fixed manufacturing overhead $ Total manufacturing overhead $ Rate 2.25
The following costs were incurred by ABC Company in January: Direct materials Direct labor Manufacturing overhead Selling expense Administrative salaries Determine ABC's total product cost. Oa. $272,000 Ob. $282,000 Oc. $252,000 Od. $302,000 $100,000 79,000 73,000 25,000 5,000
Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $321,600. During that time, the company produced 14,600 units of the M-008 and 2,200 units of the M-123. The direct costs of production were as follows. Direct materials Direct labor M-008 M-123 $116,800 $ 88,000 116,800 44,000 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Cost Driver Number of machine-hours Number of production runs Number of inspections. Total overhead Total $204,800 160,800 Costs $156, 600 70,000 95,000 $321,600 Activity Level M-898 M-123 2,000 8,000 20 30 20 20 Total 10,000 40 50 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct…
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $105,300 and expected direct labor hours of 11,700 for the current fiscal year. If job number 117 incurs 1,410 direct labor hours, Work in Process will be debited and Factory Overhead will be credit for Oa. $52,650 Ob. $1,410 Oc. $105,300 Od. $12,690
Bobby Pte Ltd charges manufacturing overhead to products by using a pre-determined overhead rate, computed on the basis of labour hours. The following data pertain to the current year:Budgeted manufacturing overhead $480,000Actual manufacturing overhead $440,000Budgeted labour hours 20,000Actual labour hours 16,000How much is overhead over-applied or under-applied, stating clearly whether it is over or under applied.
Nancy Inc., incurred the following actual overhead costs for the month of April: Account Cost Indirect materials $10,000 Indirect labor $20,000 Factory equipment depreciation $ 8,000 Factory building rent $ 7,000 Environmental remediation costs $ 2,000 Overhead is applied based on a predetermined rate of $8 per direct labor hour, and 6,500 direct labor hours were used during April. The balance of the T account for Manufacturing Overhead (MOH) would show which of the following? Group of answer choices $5,000 of credit balance of overallocated MOH $10,000 credit balance of under allocated MOH $5,000 of debit balance of overallocated MOH $10,000 debit balance of under allocated MOH
Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $72,000 $86,400 $108,000 $117,600 Square feet of factory floor space 48,000 96,000 Number of factory workers 110 70 Planned direct labor hours for the year 24,000 36,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Answer Answer Reallocation of service departments: Dept. 1 Factory floor space Answer Answer Dept. 2 Number of factory workers Answer Answer Total manufacturing overhead Answer Answer What is the apparent…
The following costs were incurred during the month of June: Direct Materials $34,000 Direct Labor $72,000 Variable Manufacturing Overhead $3,000 Fixed Manufacturing Overhead $16,000 Selling Expenses $13,000 Administrative Expenses $16,000 What were the total inventoriable costs for June?
Walton Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39.00 /unit Direct labor $ 27.40 /unit Manufacturing overhead Variable $ 11.10 /unit Fixed ($18.80/unit for 1,900 units) $ 35,720 Variable selling and administrative expenses $ 10,360 Fixed selling and administrative expenses $ 15,500 The company produced 1,900 units and sold 1,400 of them at $182.00 per unit. Assume that the production manager is paid a 1 percent bonus based on the company’s net income. Required Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Determine the manager’s bonus using each approach. Which approach would you recommend for internal reporting?
The following is the total overhead cost at various levels of activity for McRoy Company: Total Overhead Cost $222,000 $246,000 $198,000 $174,000 February March April May Direct Labour Hours 80,000 90,000 70,000 60,000 The total overhead cost above consists of utilities, rent and maintenance. The breakdown of these costs at the 60,000 direct labour hour level of activity is: Utilities (variable) Rent (fixed) Maintenance (Mixed) Total overhead cost $48,000 $21,000 $105,000 $174,000 McRoy Company wants to separate the maintenance cost into its variable and fixed components. Required: (a) Estimate how much of the $246,000 of overhead cost in March was maintenance cost. (b) Using the high low method, construct a cost formula for the maintenance cost. (c) Assume that 209,000 direct labour hours are budgeted for the third quarter of the year, what would be the total overhead cost for the quarter?