2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate basedon machine-hours.a. Compute the plantwide predetermined overhead rate.b. Compute the total manufacturing cost assigned to Job D-70 and Job C-2o0.c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 andJob C-200?d. What is Delph's cost of goods sold for the year? Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication.The company provided the following estimates at the beginning of the year:Molding22,000$ 720,000$ 4.00FabricationTotalMachine-hoursFixed manufacturing overhead costVariable manufacturing overhead cost per machine-hour32,000$ 220,000$ 1.5054, 000$ 940,000During the year, the company had no beginning or ending inventories and it started, completed, and sold only twojobs-Job D-70 and Job C-200. It provided the following information related to those two jobs:Molding$ 370,000$ 220,00013,000FabricationJob D-70Direct materials costDirect labor costMachine-hoursTotal$ 320,000$ 180,000$ 690,000$ 400,0009,00022,000Molding$ 300,000$ 140,000Total$ 580,000$ 380,00032,000Job C-200Fabrication$ 280,000$ 240,00023,000Direct materials costDirect labor costMachine-hours9,000Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer to (A) :-Computation of Plant wide predetermined overhead rate Plant wide predetermined…

2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?

2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?

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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Required:1. Using the traditional approach to assigning overhead costs to academic programs:a. Calculate the predetermined overhead rate.b. Assign the overhead costs to each academic program using the predetermined rate.c. Calculate the total cost per student (direct costs plus overhead) of operating each academic program.2. Using ABC, complete the following requirements:a. Complete the first-stage allocation of overhead costs to academic programs.b. Calculate the activity rates for each of the activity cost pools.c. Using the activity rates calculated in (b), complete the second-stage allocation of overhead to academic programs.3. Based on the results of (2), calculate the total cost per student (direct costs plus overhead) of operating each academic program.4. Draft a memo to Maple explaining the key reasons for differences in the total cost per student of operating each academic program that arise between traditional costing approach and ABC.
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Single Plantwide Rate and Activity-Based Costing Whirlpool Corporation (WHR) conducted an activity-based costing study of its Evansville, Indiana, plant in order to identify its most profitable products. Assume that we select three representative refrigerators (out of 333): one low-, one medium-, and one high-volume refrigerator. Additionally, we assume the following activity-base information for each of the three refrigerators: Three Representative Number of Machine Number of Number of Sales Number of Refrigerators Hours Setups Orders Units Refrigerator-Low Volume 24 14 38 160 Refrigerator-Medium Volume 225 13 88 1,500 Refrigerator-High Volume 900 120 6,000 Prior to conducting the study, the factory overhead allocation was based on a single machine hour rate. The machine hour rate was $200 per hour. After conducting the activity-based costing study, assume that three activities were used to allocate the factory overhead. The new activity rate information is assumed to be as follows:…
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Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
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Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
Which of the following statements is incorrect? O A. If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up job costs, the job will likely be underpriced. O B. The formula to arrive at the POHR is total budgeted manufacturing overhead divided by total estimated allocation base. O C. To calculate the increase to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object. D. "Number of units" is typically not an appropriate allocation base for MOH because the company's products do not consume equal overhead resources. If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS. O E.