At the end of the year, the company had actually incurred the following:full question attached in ss belowthanks fwgrw Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the companyexpected to incur the following:(Click the icon to view the beginning of year estimated costs.)At the end of the year, the company had actually incurred the following:(Click the icon to view the actual end of year costs.)Read the requirements.Requirement 1. Compute Alton's predetermined manufacturing overhead rate.Determine the formula calculate the predetermined overhead rate, then calculate the rate.(= Predetermined overhead rate Actual end of year costsDirect labor cost..Depreciation on manufacturing plant and equipmentProperty taxes on plant.Sales salaries..Delivery drivers' wages.Plant janitors' wages.Machine hours.PrintDone$ 1.230.000$$$$$480,00019,50026,50017,0008,50056,500 hoursX heaManufacturing overhead costsDirect labor costMachine hours.VerhBeginning of year estimated costs$ 630,000$1,650,00090,000Requirements1. Compute Alton's predetermined manufacturing overhead rate.2. How much manufacturing overhead was allocated to jobs during the year?3. How much manufacturing overhead was incurred during the year? Ismanufacturing overhead underallocated or overallocated at the end ofthe year? By how much?4. Were the jobs overcosted or undercosted? ByXPrint✓ much?DoneX

OVERAPPLIED OVERHEADOverapplied Overhead occurs when Company's Budgeted Overhead is more than…

Actual end of year costs Direct labor cost.. Depreciation on manufacturing plant and equipment Property taxes on plant. Sales salaries.. Delivery drivers' wages. Plant janitors' wages. Machine hours. Print Done $ 1.230.000 $ $ $ $ $ 480,000 19,500 26,500 17,000 8,500 56,500 hours X hea Manufacturing overhead costs Direct labor cost Machine hours. Verh Beginning of year estimated costs $ 630,000 $1,650,000 90,000 Requirements 1. Compute Alton's predetermined manufacturing overhead rate. 2. How much manufacturing overhead was allocated to jobs during the year? 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? 4. Were the jobs overcosted or undercosted? By X Print ✓ much? Done

Actual end of year costs Direct labor cost.. Depreciation on manufacturing plant and equipment Property taxes on plant. Sales salaries.. Delivery drivers' wages. Plant janitors' wages. Machine hours. Print Done $ 1.230.000 $ $ $ $ $ 480,000 19,500 26,500 17,000 8,500 56,500 hours X hea Manufacturing overhead costs Direct labor cost Machine hours. Verh Beginning of year estimated costs $ 630,000 $1,650,000 90,000 Requirements 1. Compute Alton's predetermined manufacturing overhead rate. 2. How much manufacturing overhead was allocated to jobs during the year? 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? 4. Were the jobs overcosted or undercosted? By X Print ✓ much? Done

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
A company has the following information relating to its production costs: Compute the actual and applied overhead using the companys predetermined overhead rate of $23.92 per machine hour. Was the overhead over applied or under applied, and by how much?
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost S7,234.50 $3,565.50 69 12 10 20 21 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: А. 833,100 В. $22,900 C. $51,020 D. $48,676 A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 5. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential…
T1.
Nova Company's total overhead cost at various levels of activity are presented below Total Overhead Machine- Month Hours Cost April May June 52,000 42,000 62,000 72,000 $203,860 $181,060 $226,660 $249,460 July Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost S 50,400 67,000 63.660 181,060 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the $249,460 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $249,460 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) Maintenance cost in July 2. Using the high-low method,…
Robin Company reported the following costs for the current month: Direct materials used Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Factory lease What are Robin's prime costs? Multiple Choice O O O $60,800 $56,000 $75,200 $65.600 $ 24,000 36,800 19,200 4,800 9,600 14,400 6,400
Robin Company reported the following costs for the current month: Direct materials used Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Factory lease What is Robin's total manufacturing overhead? Multiple Choice O $14,400 $28,800 $20,800 $ 24,000 36,800 19,200 4,800 9,600 14,400 6,400 $33,600
Hh1. Account