A My Home * CengageNOWv2 | Online teachin X ter cengagenowh x ament/takeAssignmentMain.do?invoker=D&takeAssignmentSessionLocator3D&inprogress%3Dfalse Calculator Print Item eBook Indirect labor $507,000 Cutting Department 156,000 Finishing Department 192,000 Total $855,000 The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Budgeted Activity Activity Cost Activity Base Production control $237,000 Number of production runs Materials handling 270,000 Number of moves Total $507,000 The activity-base usage quantities and units produced for the two products follow: Number of Direct Labor Direct Labor Production Number of Hours- Units Hours-Cutting Runs Moves Finishing Produced Snowboards 430 5,000 4,000 2,000 6,000 Skis 70 2,500 2,000 4,000 6,000 Check My Work Previous 7:02 PM 4/18/2020 F5 F6 F7 F8 F9 F10 F11 F12 Home End Insert De SysRa PrntScrm 1Paure 144 LL * CengageNOWv2 |Online teachin X rer cengagenow h x My Home ment/takeAssignmentMain.do?invoker=&takeASsignmentSessionLocator%3D&inprogress%3Dfalse Calculator Print Item eBook Direct Labor Number of Direct Labor Hours- Units Production Number of Hours-Cutting Produced Finishing Runs Moves 5,000 4,000 2,000 6,000 Snowboards 430 2,500 2,000 4,000 6,000 Skis 70 7,500 6,000 6,000 12,000 Total 500 Required: 1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent. Department Production Department Rate Cutting Department 26 X per direct labor hour Finishing Department %$1 32 X per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Snowboards Skis 3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round Der unit amounts to the nearest whole cent. Check My Work Previous 7:02 PM 4/18/2020 F5 F6 F7 F8 F9 F10 F11 F12 BIO Home End Insert K4 SysRq PmtSon %24 %24 %24

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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Could you help me find the blanks 

A My Home
* CengageNOWv2 | Online teachin X
ter cengagenowh x
ament/takeAssignmentMain.do?invoker=D&takeAssignmentSessionLocator3D&inprogress%3Dfalse
Calculator
Print Item
eBook
Indirect labor
$507,000
Cutting Department
156,000
Finishing Department
192,000
Total
$855,000
The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as
follows:
Budgeted
Activity
Activity Cost
Activity Base
Production control
$237,000
Number of production runs
Materials handling
270,000
Number of moves
Total
$507,000
The activity-base usage quantities and units produced for the two products follow:
Number of
Direct Labor
Direct Labor
Production
Number of
Hours-
Units
Hours-Cutting
Runs
Moves
Finishing
Produced
Snowboards
430
5,000
4,000
2,000
6,000
Skis
70
2,500
2,000
4,000
6,000
Check My Work
Previous
7:02 PM
4/18/2020
F5
F6
F7
F8
F9
F10
F11
F12
Home
End
Insert
De
SysRa
PrntScrm
1Paure
144
LL
Transcribed Image Text:A My Home * CengageNOWv2 | Online teachin X ter cengagenowh x ament/takeAssignmentMain.do?invoker=D&takeAssignmentSessionLocator3D&inprogress%3Dfalse Calculator Print Item eBook Indirect labor $507,000 Cutting Department 156,000 Finishing Department 192,000 Total $855,000 The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Budgeted Activity Activity Cost Activity Base Production control $237,000 Number of production runs Materials handling 270,000 Number of moves Total $507,000 The activity-base usage quantities and units produced for the two products follow: Number of Direct Labor Direct Labor Production Number of Hours- Units Hours-Cutting Runs Moves Finishing Produced Snowboards 430 5,000 4,000 2,000 6,000 Skis 70 2,500 2,000 4,000 6,000 Check My Work Previous 7:02 PM 4/18/2020 F5 F6 F7 F8 F9 F10 F11 F12 Home End Insert De SysRa PrntScrm 1Paure 144 LL
* CengageNOWv2 |Online teachin X
rer cengagenow h x My Home
ment/takeAssignmentMain.do?invoker=&takeASsignmentSessionLocator%3D&inprogress%3Dfalse
Calculator
Print Item
eBook
Direct Labor
Number of
Direct Labor
Hours-
Units
Production
Number of
Hours-Cutting
Produced
Finishing
Runs
Moves
5,000
4,000
2,000
6,000
Snowboards
430
2,500
2,000
4,000
6,000
Skis
70
7,500
6,000
6,000
12,000
Total
500
Required:
1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the
production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. Round
per unit amounts to the nearest whole cent.
Department
Production Department Rate
Cutting Department
26
X per direct labor hour
Finishing Department
%$1
32 X per direct labor hour
2. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in
(1). Round per unit amounts to the nearest whole cent.
Product
Total Factory Overhead
Factory Overhead Per Unit
Snowboards
Skis
3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round
Der unit amounts to the nearest whole cent.
Check My Work
Previous
7:02 PM
4/18/2020
F5
F6
F7
F8
F9
F10
F11
F12
BIO
Home
End
Insert
K4
SysRq
PmtSon
%24
%24
%24
Transcribed Image Text:* CengageNOWv2 |Online teachin X rer cengagenow h x My Home ment/takeAssignmentMain.do?invoker=&takeASsignmentSessionLocator%3D&inprogress%3Dfalse Calculator Print Item eBook Direct Labor Number of Direct Labor Hours- Units Production Number of Hours-Cutting Produced Finishing Runs Moves 5,000 4,000 2,000 6,000 Snowboards 430 2,500 2,000 4,000 6,000 Skis 70 7,500 6,000 6,000 12,000 Total 500 Required: 1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent. Department Production Department Rate Cutting Department 26 X per direct labor hour Finishing Department %$1 32 X per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Snowboards Skis 3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round Der unit amounts to the nearest whole cent. Check My Work Previous 7:02 PM 4/18/2020 F5 F6 F7 F8 F9 F10 F11 F12 BIO Home End Insert K4 SysRq PmtSon %24 %24 %24
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