Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that adepartmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for theupcoming year:Estimated Manufacturing Overhead byDepartmentTrail Running ShoesRunning ApparelMachining Department$800,000Trail Running Shoes360,000 machine hours15,000 direct labor hours65,000 direct labor hoursRunning Apparel40,000 machine hoursManufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:Machining Department362,000 hoursFinishing Department14,500 hours66,000 hours37,000 hoursFinishing Department$100,000OA. $156,173OB. $225,000OC. $156,500OD. $898,625How much manufacturing overhead will be allocated to running apparel? (Round any intermediary calculations to the nearest cent and your final answer to thenearest dollar)

Manufacturing overheads means all type of indirect costs and expenses being incurred for production…

Answered: Big Trail Running Company has started…

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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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.
Koelsch Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding Customizing Total Estimated total machine-hours (MHs) 1,000 9,000 10,000 Estimated total fixed manufacturing overhead cost $ 4,000 $ 25,200 $ 29,200 Estimated variable manufacturing overhead cost per machine-hour $ 2.00 $ 3.00 During the most recent month, the company started and completed two jobs--Job F and Job K. There were no beginning inventories. Data concerning those two jobs follow: Job F Job K Direct materials $ 12,300 $ 8,400 Direct labor cost $ 18,200 $ 6,800 Molding machine-hours 700 300 Customizing machine-hours 3,600 5,400 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for…
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Red Industries produces computers and goes through two operations, Assembling and Packaging before it is ready to be sold to customers. Next year's expected costs and activities are shown below. Data for Dept. Overhead costs Assembling Direct labor 401,000 DLH 99,000 hours Machine hours Packaging $ 586,600 72,000 MH 80,000 MH DLH $ 413,400 1. Compute Red's departmental overhead rate for the Assembling department based on direct labor hours. 2. Compute Red's departmental overhead rate for the Packaging department based on machine hours. 3, Compute a single plantwide rate based on machine hours. Show your work with an Excel spreadsheet or in a Word file.
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 200 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows. Sales revenue Direct labor Direct materials Baseball Bats $1,540,000 260,000 556,000 Tennis Rackets a. Using plantwide allocation b. Using department's allocation rate $1,025,000 130,000 289,000 Required: a. Compute the profit for each product using plantwide allocation. b. Maria, the manager of Department T, was convinced that tennis rackets were really more profitable than baseball bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that had department rates been used, Department B would have had a rate of 150 percent of…
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Genious Corporation implemented activity-based costing several years ago and uses it for its external financial reports. The company has four activity cost pools, which are listed below. Activity Cost Pool Activity Measure Estimated Overhead Cost Machine related Machine Hours $90,000 Purchase orders Number of orders $126,000 Machine setups Number of Setups $200,000 General factory Number of labor hrs $60,000 Expected Activity 5,000 Mhs 2,800 orders 10,000 setups 4,000 Dlhs Manufacturing overhead cost was applied to production. Actual activity during the year was as follows: Activity Cost Pool Machine related Purchase orders Machine setups General factory Actual Activity 10,500 Mhs 800 orders 1,500 setups 8,000 Dlhs It is expected that the company will produce 62,500 units. Compute the activity rate for each activity. Compute the per unit cost for overhead
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Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: Budget Actual 7,600 hours 6,100 hours Direct labor hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $23,000 $23,000 Indirect materials $48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers solla $13,000 $70,000 $40,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $72,500 $42,000 Customer service hotline $19,000 $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements 1odel tba 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers usA acco
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