fouōs 2 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Units produced eBook Direct labor-hours used Machine-hours used Standard 38,000 114,000 19,000 Ultra Total 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine- related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor- related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places. Standard Ultra Product cost per unit < Required A Required B > Show less▲ 2 10 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Standard Ultra Total Units produced eBook Direct labor-hours used Machine-hours used 38,000 114,000 19,000 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. Standard Product cost per unit Ultra < Required A Required B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

HELP ASAP

fouōs
2
points
Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of
different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues
or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time
and rework.
Data on expected operations and direct costs for the next fiscal year follow:
Units produced
eBook
Direct labor-hours used
Machine-hours used
Standard
38,000
114,000
19,000
Ultra
Total
11,500
22,500
22,500
49,500
136,500
41,500
Direct materials costs
Direct labor costs
$ 2,914,000
2,520,000
$ 3,088,000
855,000
$ 6,002,000
3,375,000
Print
References
The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year:
Account
Administration
Engineering
Machine operation and maintenance
Miscellaneous
Supervision
Total
Amount
$ 825,400
2,794,500
825,000
540,100
884,500
$ 5,869,500
The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the
product. Overhead costs are allocated based on direct labor-hours.
Required:
a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system.
b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst
suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead
consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the
remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead
would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the
system proposed by the analyst.
Complete this question by entering your answers in the tabs below.
Required A
Required B
An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The
analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-
related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead
consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-
related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next
fiscal year, based on the system proposed by the analyst.
Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.
Standard
Ultra
Product cost per unit
< Required A
Required B >
Show less▲
Transcribed Image Text:fouōs 2 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Units produced eBook Direct labor-hours used Machine-hours used Standard 38,000 114,000 19,000 Ultra Total 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine- related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor- related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places. Standard Ultra Product cost per unit < Required A Required B > Show less▲
2
10
points
Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of
different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues
or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time
and rework.
Data on expected operations and direct costs for the next fiscal year follow:
Standard
Ultra
Total
Units produced
eBook
Direct labor-hours used
Machine-hours used
38,000
114,000
19,000
11,500
22,500
22,500
49,500
136,500
41,500
Direct materials costs
Direct labor costs
$ 2,914,000
2,520,000
$ 3,088,000
855,000
$ 6,002,000
3,375,000
Print
References
The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year:
Account
Administration
Engineering
Machine operation and maintenance
Miscellaneous
Supervision
Total
Amount
$ 825,400
2,794,500
825,000
540,100
884,500
$ 5,869,500
The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the
product. Overhead costs are allocated based on direct labor-hours.
Required:
a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system.
b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst
suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead
consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the
remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead
would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the
system proposed by the analyst.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system.
Standard
Product cost per unit
Ultra
< Required A
Required B >
Transcribed Image Text:2 10 points Hall, Incorporated manufactures two components, Standard and Ultra, that are designed for the same function, but are made of different metals for operational performance reasons. The metal used in Standard is easy to work with and there are few quality issues or reworking required on the machines. The metal used in Ultra is more difficult to work with and often needs additional machine time and rework. Data on expected operations and direct costs for the next fiscal year follow: Standard Ultra Total Units produced eBook Direct labor-hours used Machine-hours used 38,000 114,000 19,000 11,500 22,500 22,500 49,500 136,500 41,500 Direct materials costs Direct labor costs $ 2,914,000 2,520,000 $ 3,088,000 855,000 $ 6,002,000 3,375,000 Print References The planning process team at Hall, Incorporated has estimated the following manufacturing overhead costs for the next fiscal year: Account Administration Engineering Machine operation and maintenance Miscellaneous Supervision Total Amount $ 825,400 2,794,500 825,000 540,100 884,500 $ 5,869,500 The cost accounting system at Hall, Incorporated calculates product costs by adding allocated overhead to the direct costs of the product. Overhead costs are allocated based on direct labor-hours. Required: a. Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. b. An analyst on the planning process team suggests that a two-stage system would improve the estimated product costs. The analyst suggests that overhead be first assigned to on one of two cost pools: Machine related and labor related. Machine-related overhead consists of the accounts "Engineering" and "Machine operation and maintenance." Labor-related overhead consists of the remaining manufacturing overhead. Machine-related costs would be allocated based on machine-hours. Labor-related overhead would be allocated based on direct labor cost. Compute the estimated per unit product costs for the next fiscal year, based on the system proposed by the analyst. Complete this question by entering your answers in the tabs below. Required A Required B Compute the estimated per unit product costs for the next fiscal year, based on the current cost accounting system. Standard Product cost per unit Ultra < Required A Required B >
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education