Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each productline, the controller, Robert Hermann, has developed the following information.CarTruckEstimated wheels produced36,00015,000Direct labor hours per wheel3Total estimated overhead costs for the two product lines are $858,600.Calculate overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)Overhead rate s858600per direct labor houreTextbook and MediaCompute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocateoverhead costs.Car wheels36000Truck wheels45000eTextbook and MediaHermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costsrelate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost poolsand related cost drivers to better understand these costs.Estimated Use ofEstimated OverheadActivity Cost PoolsCost DriversCostsSetting up machines1,000 setups$243,000Assembling81,000 labor hours324,000Inspection1,200 inspections291,600Compute the activity-based overhead rates for these three cost pools.Overhead RatesSetting up machines243%24%24 Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, giventhe following information.Estimated Use of Cost Drivers per ProductCarTruckNumber of setups200800Direct labor hours36,00045,000Number of inspections1001,100Car WheelsTruck WheelsSetting up machines24%24AssemblingInspection24Total cost assigned%24%24%24

“Since you have asked multiple question, we will solve the first question for you. If you want any…

Answered: Altex Inc. manufactures two products:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $137,314 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Quantity/Amount Consumed by Cost Activity Cost Pools Materials handling Quality control Machine maintenance Assigned to Pool $ 3,024 $ 27,590 $106,700 Cost Driver Basic Luxury 59 moves Number of moves 13 moves Number of inspections Number of machine hours 220 inspections 5,700 machine hours 110 inspections 4,000 machine hours Required: 1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Basic Model Overhead Assigned Luxury Model Overhead Assigned 2. Calculate the activity rates for…
Kareem Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost OMR 1,600,000 Actual annual overhead cost OMR 1,575,000 Estimated machine hours 400,000 Estimated Labor hours 200,000 Actual Labor hours 150,000 Actual machine hours 390,000
Overhead cost per unit of each model?
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Rex Industries data Activity Machine setups Machine hours Inspections Overhead per Activity $155,000 352,800 120,750 Annual Usage 4,000 14,112 3,500 Overhead Rate per Activity $ Complete the chart and compute the overhead rate for each activity. Round to the nearest penny, two decimal places.
Spates, Inc., manufactures and sells two products: Product H2 and Product EO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Total Labor- Direct Expected Production Hours Per Labor- Unit Hours Product H2 100 6.0 600 Product E0 100 5.0 500 Total direct labor-hours 1,100 The company's expected total manufacturing overhead is $266,468. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
Please help with answers asap
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
The following information applies to the questions displayed below.]Antuan Company set the following standard costs per unit for its product. Direct materials (5.0 pounds @ $6.00 per pound) $ 30.00 Direct labor (1.9 hours @ $11.00 per hour) 20.90 Overhead (1.9 hours @ $18.50 per hour) 35.15 Standard cost per unit $ 86.05 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 30,000 Indirect labor 75,000 Power 30,000 Maintenance 30,000 Total variable overhead costs 165,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 70,000 Taxes and insurance 18,000 Supervisory salaries 250,250 Total fixed overhead costs 362,250 Total overhead costs $ 527,250 The…
Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Customizing Forming 7, 000 $ 25,900 $ 2.50 Total Estimated total machine-hours (MHs) Estimated tot al fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 3, 000 $ 7, 200 $ 5.00 10, 000 $ 33,100 During the period, the company started and completed two jobs-Job C and Job L. Data concerning those two jobs follow: Job C Job L $ 16,900 $ 10,300 $ 23,600 $ 10, 600 Direct materials Direct labor cost Forming machine-hours Customizing machine-hours 1,250 1,250 5,750 1,750 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.…
Bramble Corporation manufactures titanium and aluminum tennis racquets. Bramble's total overhead costs consist of assembly costs and inspection costs. The following information is available regarding activity cost pools, estimated use of activities per product, and total estimated overhead costs: Activity Cost Pools Assembly Inspections Titanium O $33600. $25200. O $24000. 500 mach. hrs 350 2100 labor hrs. Aluminum 500 mach. hrs 150 1900 labor hrs. Total Cost $48000 $88000 Bramble is considering switching from one overhead rate based on labor hours to activity-based costing. If activity-based costing is used, what amount of assembly cost is assigned to titanium racquets?
Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1 $42,000 100 200 300 Activity 2 $10,000 20 5 25 Activity 3 $48,000 3,000 3,000 6,000 Compute the activity rate (allocation rate) for Activity 2: $500 $2,000 $400 $140
Bell Corporation manufactures computers. Assume that Bell: • allocates manufacturing overhead based on machine hours • estimated 8,000 machine hours and $86,000 of manufacturing overhead costs actually used 16,000 machine hours and incurred the following actual costs: (Click the icon to view the actual costs.) What is Bellredetermined overhead allocation rate? ● O A. $5.31/ machine hour B. $5.38/ machine hour C. $10.75/ machine hour O D. $10.63/ machine hour Data table Indirect labor Depreciation on plant Machinery repair Direct labor Plant supplies Plant utilities Advertising Sales commissions $ 12,000 49,000 12,000 71,000 3,000 9,000 34,000 27,000

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS