39. LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company's products and related statistics follow. Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced Product A 139,500 30,000 52,500 430 15,000 Product B 190,500 37,500 22,500 860 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12. a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver Utilities # of machine hours Setup # of setups Material handling # of pounds of material Determine the total cost for each product and the cost per unit. Cost $ 750,000 193,500 1,419,000

39. LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company's products and related statistics follow. Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced Product A 139,500 30,000 52,500 430 15,000 Product B 190,500 37,500 22,500 860 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12. a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver Utilities # of machine hours Setup # of setups Material handling # of pounds of material Determine the total cost for each product and the cost per unit. Cost $ 750,000 193,500 1,419,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Pharoah Manufacturing manufactures a single product. Annual production costs incurred in the…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: Can you please give answer?

A: Step 1: Introduction to the Direct LaborDirect labor denotes the cost of labor that is directly…

Q: Required information. Cost Classifications (Static) [The following information applies to the…

A: Product costs are inventoriable cost which means they form part of the cost of the…

Q: Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from…

A: Variable cost Depends upon the production of goods or services that is increment of sales increases…

Q: Menlo Company manufactures and sells a single product. The following information has been provided…

A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…

Q: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: Flxed manufacturing cost per unit = Total fixed manufacturing costs / Number of units produced

Q: Required information [The following information applies to the questions displayed below.] Martinez…

A: The average cost per unit is the formula that determines the cost associated with each unit. It is…

Q: Carla Vista Corporation manufactures a single product. Monthly production costs incurred in the…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: Sunland Corporation manufactures a single product. Monthly production costs incurred in the…

A: Variable Costs :— It is the cost that changes with change in activity of cost driver. Variable cost…

Q: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: Fixed manufacturing cost is the manufacturing cost which does not vary with production where…

Q: 5. (L.O. 7) The Helper Corparation manufactures one product. You have obtained the following…

A: The cost of goods manufactured includes the cost of goods that are manufactured during the period.

Q: The following data are from the accounting records of Niles Castings for year 2. Units…

A: The income statement is the one prepared by the company to depict the company's financial…

Q: The following information pertains to ABC Company: Manufacturing costs: $2,240,000 Units…

A: Gross margin is difference between sales revenue and cost of goods sold. Cost of goods sold =…

Q: a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2…

A: Activity-based costing is a method of assigning the cost to products, services, or customers based…

Q: Jasper Company provided the following information for last year: Costs Sales in units Selling price…

A: 1. Income Statement of Jasper for the last year Sales (285,000 units * $17) 4,845,000.00…

Q: Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells…

A: Product cost:These costs are directly associated with the manufacture of product. Direct…

Q: [The following information applies to the questions displayed below.] Barnes Company reports the…

A: Gross profit is a fiscal term that measures the difference between deals profit and cost of goods…

Q: [The following information applies to the questions displayed below.] Cane Company manufactures two…

A: The avoidable fixed costs are treated to be as benefit to the business if production is…

Q: 3. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?…

A: Fixed Manufacturing cost is the cost which consists of all the costs which are incurred on the…

Q: EB4. Roper Furniture manufactures office furniture and tracks cost data across their process. The…

A: The Question has Covered the concept of Cost Classification Fixed Cost is not depends on the level…

Q: [The following information applies to the questions displayed below.] Martinez Company's relevant…

A: Manufacturing overhead includes all the indirect expenses related to the production such as indirect…

Q: [The following information applies to the questions displayed below.] Martinez Company's relevant…

A: Variable cost refers to the cost that would change grounded on the production level whereas per cost…

Q: 1 Determine if each

A: Direct costs are often variable costs, meaning they fluctuate with production levels such as…

Q: 36. LO.3 (Activity analysis) Management at Glover & Lamb Inc. is concerned about controlling factory…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: Which of the following statements concerning the unit product cost of Product W2 is true? (Round…

A: Product W2 Traditional costing: Estimated overhead cost 440000 Divide by Direct…

Q: Company vant range of production its average costs per unit are as follows: Direct materials Direct…

A: Fixed cost is a cost which remains the same and does not change with units of production. A few…

Q: The following data are from the accounting records of Niles Castings for year 2 Units produced and…

A: The income statement is an essential part of the company's financial statements. It is prepared at…

Q: Determine the total amount of various types of costs. E2.21 (LO 1) Excel Caroline Company reported…

A: manufacturing cost are also known as production or overhead cost that has mainly related to the…

Q: Cost Classifications (Algo) [The following information applies to the questions displayed below]…

A: The variable cost changes with a change in level of production. The fixed costs remain constant at…

Q: Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells…

A: Total amount of fixed manufacturing overhead incurred=Fixed manufacturing overhead per unit×Units…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The
company’s products and related statistics follow.

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Requirement a.

VIEW

Step 3: Requirement b

VIEW

Step 4: Requirement c

VIEW

Solution

VIEW

Step by step

Solved in 5 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Tt.11.
1. For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods manufactured was P 13,6000,000; the work in process inventory increased by P400,000 and finished goods ending inventories increased by P400,000 during the year, but the materials inventories decreased by P 120,000. Assuming that factory overhead is applied to production at 150% of direct labor cost but only 45% of material cost, how much is the total factory overhead applied to production? 2. A machine shop manufactures a stainless-steel part that is used in an assembled product. Materials charged to a particular job amounted to P6,000. At the point of final inspection, it was discovered that the material used was inferior to the specifications required by the engineering department; therefore, all units had to be scrapped. The revenue received for scrap is to be treated as a reduction in manufacturing cost but cannot be identified with a specific job. A firm price is not determinable for…
A7 please help.........
am.1111.
[The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $ 5.10 $ 2.60 $ 1.60 $4.00 $ 2.10 $ 2.10 $ 1.10 $ 0.55 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? Note: Round your "per unit" answer to 2 decimal places. Total manufacturing overhead cost Manufacturing overhead per unit
PA17. LO 6.5 This information was collected for the first year of manufacturing for Appliance Apps: Direct materials per unit Direct labor per unit $ $ $ Variable manufacturing overhead per unit Units produced Variable selling and administration expenses $ Units sold Sales price Fixed manufacturing expenses Fixed selling and administration expenses 2.50 1.50 0.25 1.75 40,000 35,000 12 $ $140,000 $ 20,000 Requirements: 1.) Prepare an income statement under variable costing. 2.) Prepare an income statement under absorption costing. 3.) Prepare a reconciliation to the income under the absorption method. FIVE STAR *****
Please do not give image format
0 Ellerie, Incorporated, manufactures and sells two products Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct labor hours (DLH) required to produce that output appear below: Activity Cost Pools Labor-related Expected Hours Per Production Unit 710 5.1 310 2.1 Product CB Product 00 Total direct labor-hours The direct labor rate is $22.20 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $114.10 $ 114.50 Machine setups Order sice Direct Labor- Product CB Product 00 The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Multiple Choice Activity Measures Total Direct Labor- Hours 3,621 651 4,272 Cost $56,055 54,890 366,008 $ 476,953 Which of the following statements concerning the unit product cost of Product GB is true? (Round your intermediate calculations…
please explain in steps