A partial listing of costs incurred during December at Gagnier Corporationappears below:Factory supplies$8,000Administrative wages and salaries$105,000Direct materials$153,000Sales staff salaries$68,000Factory depreciation$49,000Corporate headquarters building rent $34,000.Indirect laborMarketingDirect labor$32,000$103,000$83,000The total of the period costs listed above for December isa. 89,000b. $310,000c. $325,000d. $399,000

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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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Aquaria, Co. reported the following accounting data. Sales quantity Sales Direct material Direct labor Manufacturing overhead Selling and Admin. Expenses Total fixed costs per month are $66,000 $12,000 $13,800 $1,800 1,000 $66.00 per unit $12.00 $4.00 $3.00 per unit $7.20 per unit $1,800 per month $12,000 per month
Bernard Company shows the following manufacturing costs for the first six months of the year: Production in Units Total Costs 1,350 $38,636 1,200 $36,000 1,520 $40,436 2,150 2,590 2,600 January February March April May June Using the high-low method, the total fixed costs are A. $14,900 B. $50,900 C. $23,236 D. $27,664 $48,636 $50,780 $50,900 (Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.)
Question During December, Wards Company’s actual costs incurred in the production of 1,000 units were as follows:Direct labor: $34,500 ($5 per hour)Direct material: $16,000 ($2 per pound)The standards for one unit of Wards Company’s product are as follows:Direct labor: Quantity, 0.5 hour per unit Quantity, Rate, $4.5 per hour Price, Direct material: 0.75 pounds per unit, $1.5 per poundRequired:1. Compute the direct-material price and quantity variances. Indicate whether each variance is favorable or unfavorable. Show your calculations. 2. Compute the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Show your calculations.
You are given the following information for the year ended 31 October 20X7: $ Purchases of raw materials 112,000 Returns inwards 8,000 Decrease in inventories of raw materials 8,000 Direct wages 42,000 Carriage outwards 4,000 Carriage inwards 3,000 Production overheads 27,000 Increase in work-in-progress 10,000 The value of factory cost of goods completed is A $174,000 B $182,000 C $183,000 D $202,000
Please solve c and d
Factory maintenance costs $90,000 Direct labor, wages 352,000 Direct labor, health insurance 32,000 Indirect labor, health insurance 15,000 Health insurance for production supervisor 6,500 Administrative costs 55,000 Rental of office space for administrative staff 17,500 Sales commissions 52,500 Direct material 1,230,000 Indirect materials 632,000 Advertising expense 39,000 Depreciation on factory building 62,000 Indirect labor, wages 70,000 Production supervisor's salary 32,000 Use the data to determine the total conversion cost.
The November monthly factory overhead cost budget for Brass Ltd. at normal capacity of 10,000 units or 5,000 direct labor hours follows: Variable: Power $ 6,000 Supplies 12,000 Maintenance 15,000 Total variable factory overhead 33,000 Fixed: Supervisory salaries 24,000 Depreciation of buildings and equipment 8,000 Lights and heat 6,000 Property tax and insurance 22,000 Total fixed factory overhead 60,000 Total factory overhead $93,000 (1) Prepare a flexible budget for 80%, 100% and 120% of normal capacity.(2) Determine the rate for application of factory overhead to work in process at each level of volume in relation to both units and direct labor hours.
The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials $ 350,000 Indirect labor 1,675,000 Depreciation—Building 303,000 Depreciation—Furniture 35,000 Utilities 310,000 Insurance 39,000 Property taxes 53,000 Other expenses 145,000 Total $ 2,910,000 The firm estimates total direct labor cost for the year to be $1,818,750. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Gargus account Direct labor $ 3,000 Feller account Direct labor $ 9,000 Required: 1. Compute the firm’s predetermined overhead rate. 2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1. 3. Compute total job cost for the Gargus account and the Feller account.
3. Better Products Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for October 2022: Direct materials $370,000 Direct labor (3,300 hours @ $17/hour) 56,100 Indirect labor 22,000 Plant facility rent 53,000 Depreciation on plant machinery and equipment 41,000 Sales commissions 17,000 Administrative expenses 29,000 The actual amount of manufacturing overhead costs incurred in October 2022 totals ________. A) $277,500 B) $116,000 C) $162,000 D) $123,000
The Meyers CPA firm has the following overhead budget for the year: Overhead Indirect materials Indirect labor Depreciation-Building Depreciation-Furniture Utilities Insurance Property taxes Other expenses Total $ 500,000 1,900,000 333,000 65,000 385,000 54,000 68,000 175,000 $ 3,480,000 The firm estimates total direct labor cost for the year to be $2,175,000. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Gargus account Direct labor $ 4,500 Feller account Direct labor $ 10,500 Required: 1. Compute the firm's predetermined overhead rate. 2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rate calculated in requirement 1. 3. Compute total job cost for the Gargus account and the Feller account.
Odyssey Inc. has a total of $2,362,500 in production overhead costs. The company’s products and related statistics follow. Product A Product B Direct material in pounds 139,500 190,500 Direct labor hours 30,000 37,500 Machine hours 52,500 22,500 Number of setups 430 860 Number of units produced 15,000 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hours costs $12. a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit.Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A Product B Total cost Total cost per unit b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit.Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A…
Shalom Company has provided the following data concerning its costs: Fixed cost per month Cost per hour 1 Administrative expenses 22,300 1.00 M 2 Depreciation 5,000 2.00 M 3 Supplies 6.00 V 4Rent 15,000 F 5 Utilities 4,700 3.50 M 6 Wages and salaries 24,100 35.00 M The company planned to work for 300 hours in February for P350 per hour. However, it worked 360 hours during that month, an activity…

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