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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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