Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the productsand departments are listed below.ProductNumber ofUnitsRings9103Dings2,2709All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,800. All of the labor hours take placein the Assembly Department, which has estimated total factory overhead of $70,800.Direct Labor Hoursper Unit65Oc. $3.70 per direct labor hourOd. $4.21 per direct labor hourMachine Hoursper UnitAleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as anallocation base, and the Assembly Department uses direct labor hours.The Assembly Department's factory overhead rate isOa. $4.48 per machine hourOb. $4.10 per machine hour

Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Rings Number of Units Direct Labor Hours per Unit 910 3 Dings 2,270 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,800. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $70,800. 6 5 Machine Hours per Unit Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is Oa. $4.48 per machine hour Ob. $4.10 per machine hour Oc. $3.70 per direct labor hour Od. $4.21 per direct labor hour

Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Rings Number of Units Direct Labor Hours per Unit 910 3 Dings 2,270 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,800. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $70,800. 6 5 Machine Hours per Unit Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is Oa. $4.48 per machine hour Ob. $4.10 per machine hour Oc. $3.70 per direct labor hour Od. $4.21 per direct labor hour

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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Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor Hoursper Unit Machine Hoursper Unit Rings 1,040 5 4 Dings 1,790 9 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $84,700. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $75,000. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is a.$3.52 per direct labor hour b.$4.03 per machine hour c.$4.34 per machine hour d.$4.18 per direct labor hour
Solomon Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Activities Unit Level Batch Level Product Level Facility Level Cost $ 78, 300 $ 28,910 $ 15,000 $ 180,000 Cost driver 2,700 labor hours 49 setups Percentage of use 18,000 units Production of 730 sets of cutting shears, one of the company's 20 products, took 180 labor hours and 5 setups and consumed 16 percent of the product - sustaining activities. Required Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? How much overhead is allocated to the cutting shears using activity-based costing? Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 730 units…
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Blinks 984 2 7 Dinks 2,096 8 7 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $107,300. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $85,100. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is
Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $2,200 5 40 600 Security Department 4,500 3 0 500 Cutting Department 21,200 21 3,600 2,400 Sewing Department 24,900 19 5,400 3,000 Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. Line Item Description CuttingDepartment SewingDepartment…
BNC Company produces a product in two departments: (1) mixing and (2) finishing. the company uses a process cost accounting system. Accounting Transactions No. Transactions (e) manufacturing overhead is applied to the product based on machine hours used in each department: mixing department - 400 machine hours at $30 per machine hour. Finishing department - 500 machine hours at $20 per machine hour. (f) units costing $56,000 were completed in the mixing department and were transferred to the finishing department. (g) units costing $70,000 were completed in the finishing department and were transferred to finished goods. (h) finished goods costing $40,000 were sold on account for $55,000. Prepare the journal entries to record the preceding transactions for BNC Company. List debit transactions first and then list credit transactions. General Journals No. Account Titles and Explanation Debit ($) Credit ($) (e) work in process inventory - mixing…
Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Windows DESKTOP- Windows Number of setups Number of products Direct labor-hours Total overhead cost Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y FEB +1 (252) 484-2153 Oh nun Product Y Product Z 8,800 3,200 240 40 1 1 8,800 3,200 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y an Product Z? (F your intermediate calculations to 2 decimal places. Round your answers to 2…
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Per Unit Product Units Blinks Dinks 1,101 2,269 3 4 Machine Hours Per Unit 8 5 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $80,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,700. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is Oa. $308.12 Ob. $23.17 Oc. $44.34 Od. $59.10
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Blinks Dinks Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit is 920 Oa. $52.18 Ob. $89.11 Oc. $14.85 Od. $77.51 1,843 1 6 7 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $100,400. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $77,500. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks 9
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $27 per machine hour Assembly $11 per direct labor hour Setup $45 per setup Inspecting $23 per inspection Production scheduling $12 per production order Purchasing $9 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,861 1,098 Direct labor hours 413 161 Setups 62 19 Inspections 615 369 Production orders 65 13 Purchase orders 211 129 Units produced 295 198 Use the activity rate and usage information to calculate the total activity cost and…
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Rings 1,120 5 5 Dings 2,320 7 7 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $84,400. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $70,600. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The total factory overhead allocated per unit of Dings is a.$49.63 b.$35.45 c.$45.06 d.$3.75
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Product A: (machine hours= 1,200) (number of batches 55) Product X: (mahine hours= 3,200) (number of batches 18) Totals: (Machine hours= 4,400) (number of batches 73) What is the amount of Machining cost assigned to Product X?
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Rings 1,000 5 7 Dings 2,740 7 10 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $89,300. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $65,100. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The total factory overhead allocated per unit of Rings is a.$31.65 b.$3.44 c.$44.83 d.$41.28