are so expensive and so unique, we will deploy a Job Costing system. Journalize the following transactions or make the necessary calculations: Calculation. Building a bicycle is labor intensive. And as such, we think the best way
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- You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,800 +$0.17 per machine-hour $38,500 +$1.50 per machine-hour $0.40 per machine-hour $94, 300 +$1.20 per machine-hour $67,800 Actual Cost in March $ 22,170 $ 63,800 $ 8,200 $ 120,400 $ 69,500 During March, the company worked 19,000 machine-hours and produced 13,000 units. The company originally planned to work 21,000 machine-hours during March. Required: 1. Calculate…You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $17,000+ $0.12 per machine-hour $38,300+ $1.70 per machine-hour $0.50 per machine-hour During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.…u Technology Co. manufactures DVDS for computer software and entertainment companies. Tu uses job order costing. On November 2, Tu began production of ,900 DVDS, Job 423, for Diorama Pictures for $1.40 sales price per DVD. Tu promised to deliver the DVDS to Diorama Pictures by November 5. Tu incurred the ollowing direct costs: (Click the icon to view the costs.) A (Click the icon to view additional information.) Read the requirements. Direct materials Direct labor Manufacturing overhead allocated Labor Time Requisition Record Number Number Amount Date Rate Amount Date Amount 11-3 145% of direct 372 24 180 labor cost 11-2 63 2$ 655 700 Overall Cost Summary 11-2 64 126 656 260 Direct materials 1198 11-3 74 Direct labor 440 Manufacturing overhead Allocated Total Job Cost $ 1,198 $4 440 Cost per DVD Totals
- "Blast it" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers jon by $2,000. It seems we're either too high to get the job or too low to make any money on half the jobs we bid". Teledex Company manufactures products to customers specification and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Department Fabricating Machining Assembly Total Plant manufacturing overhead $350,000 $400,000 $90,000 $840,000 direct labor $200,000 $100,000 $300,000 $600,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Departments Fabricating Machining…You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor. Depreciation Cost Formula $16,900 $0.14 per machine-hour $38, 300+ $1.30 per machine-hour $0.70 per machine-hour $94,700+ $1.50 per machine-hour $68, 100 Actual Cost in March $ 21,360 $ 56,800 $ 13, 100 $ 124, 100 $ 69,808 During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19,000 machine-hours during…You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities. Maintenance Supplies Indirect labor Depreciation Cost Formula $16,700+ $0.16 per machine-hour $38,700+ $1.60 per machine-hour $0.80 per machine-hour $94,900 $68,500 $1.30 per machine-hour Actual Cost in March $ 22,180 $ 69,300 $ 18,200 Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. $ 125,700 $ 70,200 During March, the company worked 21,000…
- You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $16,800 + $0.21 per machine-hour $ 22,800 Maintenance $38,500 + $1.40 per machine-hour $ 60,300 Supplies $0.50 per machine-hour $ 9,800 Indirect labor $94,300 + $1.70 per machine-hour $ 129,200 Depreciation $68,000 $ 69,700 During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during…“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $3,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Department Total Plant Fabricating Machining Assembly Manufacturing overhead $ 355,250 $ 406,000 $ 91,350 $ 852,600 Direct labor $ 203,000 $ 101,500 $ 304,500 $ 609,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Department Total Plant Fabricating Machining Assembly Direct materials $ 3,300 $ 200 $…“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $4,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Department Fabricating Machining Assembly Total Plant Manufacturing overhead $ 362,250 $ 414,000 $ 93,150 $ 869,400 Direct labor $ 207,000 $ 103,500 $ 310,500 $ 621,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Department Fabricating Machining Assembly Total Plant Direct materials $ 3,700…
- You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $20,680 $ 64,500 $ 9,400 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,800 + $0.13 per machine-hour $38,700 + $2.00 per machine-hour $0.60 per machine-hour $94,300+ $1.40 per machine-hour $67,500 $ 117,600 $ 69,200 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company originally planned to work 16,000 machine-hours during March. Required: 1. Calculate…I need help solving the following problem. Elizabeth Flanigan and Associates is an engineering and design firm that specializes in developing plans for recycling plants for municipalities. The firm uses a job costing system to accumlate the cost associated with each design project. Flanigan employs three levels of employee: senior engineers, associate engineers, and clerical staff. The salary cost of the clerical staff is included in overhead, along with the cost of engineering supplies, automobile travel, and equipment depreciation. The cost of airline travel, motels, building permits, and fees from other consultants is charged to each project as direct materials. Overhead is applied to projects using a predetermined overhead rate based on total engineering hours. The rate for 20X0 is $5 per hour. The six different salary levels for 20X1 for the employees of Elizabeth Flanigan and Associates are listed below. The hourly rate is determined by dividing the yearly salary by 2,000…You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,800 +$0.16 per machine-hour $38,600 + $1.30 per machine-hour $0.70 per machine-hour $94,700 + $1.30 per machine-hour $67,800 $ 22,440 $ 63,600 $ 16,600 $ 126,800 $ 69,500 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24.000 machine-hours during March.…
