At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000

At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000

Name: At the beginning of the year, you estimated the following -Production
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: At the beginning of the year, you estimated the following -Production - 75,000 unitsRaw Material - 270,000 pounds at a cost of $1,026,000Direct Labor - 187,500 hours at a cost of $4,125,000Variable Overhead - 135,000 machine hours at a cost of $567,

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

During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Assembly 248,888 DLH Finishing 154,000 DLH 68,000 MH 448,800 MH $440,000 Direct labor hours Machine hours Overhead costs Assume that Angler Industries allocates overhead using a plantvide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.90 machine hours in the Assembly Department, and 4.00 direct labor hours and 0.6 machine hours in the Finishing Department? Multiple Chaises O O O $21.50 $17.60 $2.00. $18.10 $ 677,680 $13.20.
Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $308,750 • budgeted variable manufacturing overhead of $4.00 per direct labor hour, • actual direct labor hours worked of 64,000 hours, and • budgeted direct labor-hours to be worked in the coming period of 65,000 hours. The company allocates MOH based on direct-labor hours. The predetermined plantwide overhead rate for the period is closest to:A. $8.50 per dlh B. $8.82 per dlh C. $$8.75 per dlh D. $8.63 per dlh
Johnson Electrical produces industrial ventilation fans. The company plans to manufacture 87,000 fans evenly over the next quarter at the following costs direct material, $1,740,000, direct labor, $522,000, variable production overhead, $639,450, and fixed production overhead. $960,000. The $960,000 amount includes $84,000 of straight-line depreciation and $105,000 of supervisory salaries Shortly after the conclusion of the quarter's first month, Johnson reported the following costs: Direct material Direct labor $ 554,600 159,300 Variable production overhead Depreciation 220,000 28,000 Supervisory salaries 37,600 Other fixed production overhead Total 252,000 $1,251,500 Dave Kellerman and his crews turned out 25,000 fans during the month a remarkable feat given that the firm's manufacturing plant was closed for several days because of storm damage and flooding Kellerman was especially pleased with the fact that overall financial performance for the period was favorable when compared…
The budgeted conversion costs for a just-in-time cell are $224,200 for 3,800 production hours. Each unit produced by the cell requires 45 minu process time. During the month, 2,300 units are manufactured in the cell. The estimated materials cost is $50 per unit. What is the journal ent units are completed and placed into finished goods? a. Raw and In Process Inventory 207,350 Finished Goods Inventory 207,350 Ob. Finished Goods Inventory 239,800 Raw and In Process Inventory 239,800 ○ c. Raw and In Process Inventory 239,800 Finished Goods Inventory 239,800 Od. Finished Goods Inventory 207,350 Raw and In Process Inventory 207,350
Obi Wan Pierogi, Inc. has prepared the following estimates for the coming year:Estimated Direct Labor Hours: 80, 000 hoursEstimated Direct Labor Costs: $1,000,000Estimated Machine Hours: 60,000 hoursEstimated Manufacturing Overhead Costs: $600, 000Overhead is applied using machine hours. If Job #123 uses 9, 500 machine hours, how much total overhead will be applied to it ?$60,000 $10.00 $600,000 $95,000
Sherman Manufacturing Company currently manufactures a component used in one of its products. The annual production costs for 11,300 components are as follows: Material cost Labor cost Overhead Batch-level set-up costs for year Product-level manager's salary Allocated facility-level costs $ 7 per unit $ 3 per unit $ 1 per unit $ 5,700 $ 17,700 $ 11,700 An outside company has offered to supply 11,300 units of the component for $14.40 each. If the company outsources the component, it will be able to rent out the idle factory space for $2,000 per month but will not terminate the product manager. Required: a. Which items are not relevant to this outsourcing decision? b. Identify any opportunity costs associated with this decision. c. Prepare a quantitative analysis that indicates whether the component should be outsourced. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a quantitative analysis that indicates whether the component…
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs $ 52,000 Number of setups 250 Ordering costs 34,000 Number of orders 1,500 Maintenance 108,000 Machine hours 2,000 Power 22,000 Kilowatt hours 4,000 Total Overhead $ 216,000 Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: Product X Direct materials $ 5,400 Number of setups 5 Direct labor $ 3,400 Number of orders 50 Units completed 100 Machine hours 50 Direct labor hours 100 Kilowatt hours 500 If Orange, Inc. uses direct labor hours to assign overhead, the unit product cost for Product X will be: Multiple Choice $76.00. $86.00. $96.00. $106.00. $196.00.
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 12,000 hours for production: Variable overhead cost: Indirect factory labor $31,200 Power and light 9,120 Indirect materials 20,400 Total variable overhead cost $ 60,720 Fixed overhead cost: Supervisory salaries $45,600 Depreciation of plant and equipment 12,000 Insurance and property taxes 22,400 Total fixed overhead cost 80,000 Total factory overhead cost $140,720 Tannin has available 16,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $27,890 Power and…
A company uses the following standard costs to produce a single unit of output. Direct materials 7 pounds at $0.90 per pound = $ 6.30 Direct labor 0.4 hour at $9.00 per hour = $ 3.60 Manufacturing overhead 0.4 hour at $4.20 per hour = $ 1.68 During the latest month, the company purchased and used 66,000 pounds of direct materials at a price of $1.30 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $32,336 based on 3,760 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $13,800 and fixed manufacturing overhead incurred was $20,000. Based on this information, the total direct materials variance for the month was:
Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month: Materials quantity variance $ 4,050 U Labor spending variance $ 2,180 U Labor efficiency variance $ 770 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the…
Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided in the table below. Manufacturing Activities and Associated Information Overhead activities Overhead costs assigned ($) Number of cost driver Material handling 120,000 240,000 Parts Devising 400,000 50,000 Machine hours (MH) Assembling 168,000 240,000 Parts Finishing 240,000 4,000 Finishing hours (FH) Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. What would be the overhead rate per finishing hour (FH)? (Round your answer to two decimal points) Group of answer choices $8.00 per FH $0.70 per FH $60.00 per FH $0.50 per FH