Chapter 6: A Closer Look on Cost AccountingThe company makes 2,350 units of product X a year, requiring a total os3.300 machine hours, 250 orders and 200 inspection hours per year. Theproduct's direct material cost is P201.50 and its direct labor cost inP211.11 per unit. The product sells for P590 per unit. According to theactivity-based costing system, the gross margin for product X is?423,087.50b. 350,435.50c. 416,890d. None of the choicea.56.The following information is available for Mary Corp.Activity PoolSetupsQuality InspectionsAssembly (direct labor hour)What is the activity rate for setups?Activity Base50,000120,000400,000Budgeted Amount300,000600,0002,000,000a. P5.09c. РО.75d. P58.00b. Рб.00The activity rate for quality inspection is:с. Рб.00d. P5.09a. P5.29b. P5.00

The activity rate is calculated as total budgeted cost of particular activity divided by estimated…

56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? P5.09 Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 с. РО.75 d. P58.00 a. b. Рб.00 The activity rate for quality inspection is: c. Р6.00 d. P5.09 a. P5.29 b. P5.00

56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? P5.09 Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 с. РО.75 d. P58.00 a. b. Рб.00 The activity rate for quality inspection is: c. Р6.00 d. P5.09 a. P5.29 b. P5.00

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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ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A € When Job 117 was completed, direct materials totaled $9,518; direct labor, $14,467; and factory overhead, $14,085. A total of 2,115 units were produced at a per-unit cost of Oa. $38,070 Ob. $2,115 Oc. $18 Od. $23.985 8:2 O J i I' C 5/2
Question Content Area Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120, 000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is a. $600, 000 b. $488,000 c. $400, 000 d. $300,000
erlal Accounting- Spring21 Time left 1:34:22 XYZ Co. manufactures three types of remote-control devices:X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Driver Cost Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 10 15 25 Number of parts per unit Machine hours per unit 1 3 Labor hours per unit 2 Windows bu What is pool rate for the automated machinery activity? Is buu sc) NG
Q12. Given the following information, answer the questions given below: Raw Materials Debit Credit Balance 1/1 Debits Balance 12/31 16,000 Credits 122,000 26.000 Manufacturing Overhead Debit Credit Debits 233.800 Credits Work in Process Debit Credit Balance 1/1 Direct materials Direct labor 21,000 Credits 91,000 153,000 244,800 473,000 Overhead Balance 12/31 Factory Wages Payable Debit Credit Debits 187,000 Balance 1/1 Credits Balance 12/31 Finished Goods 9,500 182,000 4,500 Debit Credit Balance 1/1 Debits Balance 12/31 41,000 Credits 61,500 Cost of Goods Sold Debit Credit Debits Cost of raw materials b. Indirect materials Indirect labor cost а. х1 x2 с. x3 d. Cost of goods manufactured Unadjusted cost of goods sold Assume that overhead is applied to production on the basis of direct labor cost f. Predetermined overhead rate g. Amount of Manufacturing overhead (under/over)applied h. Was Manufacturing overhead (under/over)applied i. Ending balance in the work in process j. Direct…
B NOWv2 | Online teachir X + ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... Ⓒ Thomlin Company forecasts that total factory overhead for the current year will be $17,280,000 with 180,000 total machine hours. Year to date, the actual overhead is $8,220,000, and the actual machine hours are 82,200 hours. If Thomlin Company uses a predetermined factory overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is a. $328,800 underapplied Ob. $391,200 overapplied Oc. $328,800 overapplied Od. $391,200 underapplied 8:15 A 5/2/202 H U a 1 C
Test VII. High and Low Points Method. A controller is interested in analyzing the fixed and variable costs of indirect labor as related to direct labor hours. The following data have been accumulated: Indirect Direct Labor Labor Cost $2,880 3,256 2,820 3,285 3,200 3,200 Month March. Hours 425 Аpril May June. July . August. 545 440 560 540 495 Requirement: Determine the amount of the fixed portion of indirect labor expense and the variable rate for indirect labor expense, using the high and low points method.
PLease show work Not sure how to calulate properly IS Personnel Administration Residential Commercial Number of IS service tickets 90 120 75 1,410 940 Number of employees 35 40 27 138 162 Square footage occupied 3,900 8,000 3,800 16,100 69,500 The costs of the service departments and the allocation basis for each department follow. Department Direct Cost Allocation Base Information Systems (IS) $ 17,000 IS service tickets Personnel 24,000 Employees Administration 20,700 Square footage occupied Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? Assume the same method of allocation as in requirement (a). What amount of personnel department costs is allocated to the residential department? I keep getting mixed up
Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Cost Driver Volume Resources used Materials Power Setups Purchasing $ 4,800 $ 3,744 $ 1,800 $ 4,320 Client assistance $18,240 $ 8,160 $ 6,720 6,400 272 62 64 $ 235,200 $ 42,912 $ 57,600 $ 50,400 $ 37,440 $ 69,600 $ 67,200 40 256 3,360 Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Sales revenue for Hosmer Industries is $720,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. pounds hours setups purchase orders inquiries labor-hours square meters
Problem 11-60 (Algo) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost Using Department Transactions IT Operations Retail Commercial Ө Ө 70% 30% 10% Ө 20% 30% 40% 50% Ө Ө 10% 40% $ 390,000 $ 810,000 $ 1,650,000 $ 3,850,000 $ 2,400,000 Required: a. Allocate the service department costs to the two operating departments using the reciprocal method. From: Costs Operations Allocated to: Transactions Retail Commercial IT $ 810,000 $ 162,000 $ 81,000 $ 243,000 $ 324,000 Operations Transactions Total $ 243,000 $ 324,000
Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 370 per run 425 runs Clerical 50 per page 2,500 pages typed Resources supplied Setups $ 160,450 Clerical 133,400 Sales revenue totaled $315,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
The following information is available for the two production departments, machining and assembly, and one service department, the canteen: Machining Assembly Budgeted overheads £15,000 £20,000Number of staff 30 20Canteen £5,500 5After reapportionment of the service cost centre costs, what will be the overhead cost of the machining department cost centre?A. £3,300B. £17,750C. £18,000 D. £18,300
Exercise 10-50 (Algo) Costs of Quality (LO 10-7, 8) The following represents the financial information for Domingo Corporation for two months. March April Sales revenue $ 515,000 $ 420,000 Costs Process inspection $ 1,750 $ 1,910 Scrap 1,830 1,880 Quality training 18,800 13,900 Warranty repairs 4,200 4,600 Product testing equipment 6,700 7,000 Customer complaints 2,600 3,700 Rework 16,000 18,500 Preventive maintenance 12,600 10,300 Materials inspection 6,500 4,500 Field testing 9,900 11,700 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April.