53-6 Compute various manufacturing overhead rates (Learning Objective 3)Edmonton Pools manufactures swimming pool equipment. Edmonton estimates totalmanufacturing overhead costs next year to be $1,400,000. Edmonton also estimates itwill use 50,000 direct labor hours and incur $1,000,000 of direct labor cost next year. Inaddition, the machines are expected to be run for 40,000 hours. Compute the prede-termined manufacturing overhead rate for next year under the following independentsituations:1. Assume that the company uses direct labor hours as its manufacturing overheadallocation base.2. Assume that the company uses direct labor cost as its manufacturing overheadallocation base.3. Assume that the company uses machine hours as its manufacturing overheadallocation base.

S3-6 1. Manufacturing overhead rate =Total estimated amount of manufacturing overheadTotal estimated…

Answered: 53-6 Compute various manufacturing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: FabricationDepartment FinishingDepartment Cost Driver Maintenance $ 36,000 18,000 Machine hours Materials handling 54,000 27,000 Material moves Machine 126,000 9,000 Machine setups Inspections - 45,000 Inspection hours Total $ 216,000 $ 99,000 The following activity predictions were also made for the year: FabricationDepartment FinishingDepartment Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering…
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Homework/2020 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $60,000 2,000 hours Account billing (lines) $30,000 20,000 lines Account verification (accounts) $15,000 20,000 accounts Correspondence (letters) $10,000 1,000 letters The above activities are carried out at two of their regional offices. Northeast Office Midwest Office Account inquiry (hours) 100 hours 200 hours Account billing (lines) 10,000 lines 7,000 lines Account verification (accounts) 1,000 accounts 600 accounts Correspondence (letters) 50 letters 100 letters How much of the account verification costs will be assigned to the Northeast Office?
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