Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory overhead rate based on direct labor hours.Information for the month of May, Bugaboo's first month of operations, follows:BudgetedDirect LaborUnit VolumeHours Per UnitFluffs80,000 boxes0.10Crinkles60,000 boxes0.20Snaps20,000 boxes0.50Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit.Bugaboo's budgeted overhead costs for May are:Indirect labor$280,000Utilities65,000Supplies45,000Depreciation30,000Total$420,000Round your answers to two decimal places, if necessary.a. Compute Bugaboo's plantwide factory overhead rate for May.per direct labor hourb. Compute the product cost in May for each type of cookie.FluffsCrinklesSnapsCost per boxC. Does Bugaboo's use of a plantwide factory overhead rate in any way distort the product costs for May?

Factory overhead recovery rate = Budgeted overhead / Total direct labor hours

a. Compute Bugabo0's plantwide factory overhead rate for May. per direct labor hour b. Compute the product cost in May for each type of cookie. Fluffs Crinkles Snaps Cost per box G. Does Bugaboo's use of a plantwide factory overhead rate in any way distort the product costs for May?

a. Compute Bugabo0's plantwide factory overhead rate for May. per direct labor hour b. Compute the product cost in May for each type of cookie. Fluffs Crinkles Snaps Cost per box G. Does Bugaboo's use of a plantwide factory overhead rate in any way distort the product costs for May?

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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Direction: Identify each statement whether it is true or false. Cost of general advertising is non-manufacturing cost and a direct cost. Cost of fabric used in T-shirts of T-shirt manufacturing business is a variable cost, direct material cost and a period cost. Depreciation of Sewing Machine of T-shirt manufacturing business is a fixed cost and a factory overhead cost. Assembly line worker’s wages is a controllable cost, product cost, direct labor cost and indirect cost. Sales commission is a non-manufacturing cost and uncontrollable cost. Executive office and heat and air conditioning is an administrative cost, non-manufacturing cost and non-controllable cost. Cost of electricity used in sewing department of T-shirt manufacturing business is an indirect cost, Factory overhead cost and a product cost. Depreciation of furniture of sales staff is a fixed cost, period cost and selling costs. Salary of the accountant is a non-manufacturing cost, fixed cost, period cost and…
Hello! I posted this question and only the 3 subparts were solved kindly solve the remaining 2 parts i) Using the high-low method derive the cost function that can be used to predict the Sales&Marketing department overhead cost using the Number of Baby Powder OrdersReceived during the month (X1) as the activity level. ii) Using the high-low method derive the cost function that can be used to predict the Sales&Marketing department overhead cost using the Total weight of Baby Powder sold duringthe month in Kgs (X2)as the activity level iii) Using the cost function derived in (i) above using the Number of Baby Powder OrdersReceived during the month (X1) as the activity level estimate the Sales &Marketingdepartment overhead cost for the month of September 2021 where the Number of BabyPowder Orders Received is expected to be 1,800 orders iv) Using the cost function derived in (ii) above using the Total weight of Baby Powder soldduring the month in Kgs (X2) as the activity level…
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One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA. technological advances may decrease the effect of direct labor hours as a percentage of total manufacturing costs. B. technological advances may increase direct labor hours as a percentage of total manufacturing costs. OC. direct labor hours may decrease the effect of technological advances. OD. direct labor hours may increase the effect of technological advances.
Subject: accounting
I’ve received the solution to this problem, but the year 2 fixed manufacturing overhead deferred and the absorption costing loss were both wrong for year 2.
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Month January February March April May June (a) Power Cost $28,390 (b) 36,069 32,895 26,235 (c) 23,890 20,700 Your answer is correct. Variable power costs $ Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. eTextbook and Media Your answer is correct. Factory Machine Hours What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Fixed power costs $ eTextbook and Media 15,800 21,400 Total power cost $ 18,700 High 15,100 13,500 What is the estimated fixed power cost each month? 10,500 1.41 5,895 per factory machine hour Low 5,895 If it is estimated that 13,800 factory machine hours will be run in July, what is the expected total power cost for July?
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Jason's Outdoors manufactures two products: snow skis and water skis. Jason's managerial accountant suspects that product cost distortion through factory overhead allocation is occurring where snow skis are underpriced and water skis are overpriced. Based on this information, which of the following statements is true? a. Snow skis likely consumed a larger proportion of factory overhead than was allocated. b. Jason's should expand production of snow skis. c. Jason's accountant should ignore the cost distortions. d. Jason's concludes that it is applying its factory overhead properly.