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20 Pope Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs for the next two quarters are given below: First Qtr Second Qtr Direct materials 24 288,000 $ 140,000 Direct labor 160,000 80,000 Manufacturing overhead Total manufacturing costs 240,000 220,000 24 688,000 24 440,000 Number of units to be produced Estimated unit product cost 160,000 80,000 24 4.30 $ 5.50 Based on the information given, estimate the fixed manufacturing overhead cost per quarter. A. $ 648,000 В. %24 192,000 С. S 200,000 D. $ 220,000 E. None of the above

20 Pope Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs for the next two quarters are given below: First Qtr Second Qtr Direct materials 24 288,000 $ 140,000 Direct labor 160,000 80,000 Manufacturing overhead Total manufacturing costs 240,000 220,000 24 688,000 24 440,000 Number of units to be produced Estimated unit product cost 160,000 80,000 24 4.30 $ 5.50 Based on the information given, estimate the fixed manufacturing overhead cost per quarter. A. $ 648,000 В. %24 192,000 С. S 200,000 D. $ 220,000 E. None of the above

FINANCIAL ACCOUNTING
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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Answer should be C but not sure about calculations and formulas. Thanks for help.

**Pope Company Case Study: Cost Analysis and Estimation** Pope Company produces a single product that experiences significant seasonal demand fluctuations. The company uses a job-order costing system, determining predetermined overhead rates quarterly, based on the production volume as the allocation base. Below are the estimated costs for the next two quarters. ### Costs Overview | Details | First Quarter | Second Quarter | |---------------------------|---------------|----------------| | **Direct materials** | $288,000 | $140,000 | | **Direct labor** | $160,000 | $80,000 | | **Manufacturing overhead**| $240,000 | $220,000 | | **Total manufacturing costs** | $688,000 | $440,000 | ### Production and Cost Estimates | Details | First Quarter | Second Quarter | |------------------------------|---------------|----------------| | **Number of units to be produced** | 160,000 | 80,000 | | **Estimated unit product cost** | $4.30 | $5.50 | ### Calculation Task Based on the provided data, estimate the fixed manufacturing overhead cost per quarter: - **A.** $648,000 - **B.** $192,000 - **C.** $200,000 - **D.** $220,000 - **E.** None of the above This scenario challenges students to analyze cost data and apply cost accounting principles to determine the fixed manufacturing overhead costs accurately.
Transcribed Image Text:**Pope Company Case Study: Cost Analysis and Estimation** Pope Company produces a single product that experiences significant seasonal demand fluctuations. The company uses a job-order costing system, determining predetermined overhead rates quarterly, based on the production volume as the allocation base. Below are the estimated costs for the next two quarters. ### Costs Overview | Details | First Quarter | Second Quarter | |---------------------------|---------------|----------------| | **Direct materials** | $288,000 | $140,000 | | **Direct labor** | $160,000 | $80,000 | | **Manufacturing overhead**| $240,000 | $220,000 | | **Total manufacturing costs** | $688,000 | $440,000 | ### Production and Cost Estimates | Details | First Quarter | Second Quarter | |------------------------------|---------------|----------------| | **Number of units to be produced** | 160,000 | 80,000 | | **Estimated unit product cost** | $4.30 | $5.50 | ### Calculation Task Based on the provided data, estimate the fixed manufacturing overhead cost per quarter: - **A.** $648,000 - **B.** $192,000 - **C.** $200,000 - **D.** $220,000 - **E.** None of the above This scenario challenges students to analyze cost data and apply cost accounting principles to determine the fixed manufacturing overhead costs accurately.
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