Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for BlueSpruce.Technicians' wages and benefitsParts manager's salary and benefitsOffice employee's salary and benefitsOther overhead(a)Total budgeted costsCompute the rate charged per hour of labor.TimeCharges$202,800Labor rate $39,0007,800$249,600The company desires a $39 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,800 hours ofrepair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000.MaterialLoadingChargesper hour$39,30014,78029,120$83,200

INTRODUCTION: Labour rates are used to calculate both the price of employee time invoiced to…

Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Blue Spruce. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Compute the rate charged per hour of labor. Labor rate Time Charges $202,800 $ 39,000 7,800 The company desires a $39 profit margin per hour labor and a 28% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000. $249,600 Material Loading Charges per hour $39,300 14,780 29,120 $83,200

Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Blue Spruce. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Compute the rate charged per hour of labor. Labor rate Time Charges $202,800 $ 39,000 7,800 The company desires a $39 profit margin per hour labor and a 28% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000. $249,600 Material Loading Charges per hour $39,300 14,780 29,120 $83,200

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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Rose Company uses a flexible budget for manufacturing overhead based on direct labor hours. The following information are from the yearly static overhead budget for the Production Department for 2023. It is based on 300,000 direct labor hours. Variable Costs Fixed Costs Indirect labor ($1.2 per DL hour) $30,000 Supervision $ 5,000 Supplies and lubricants ($0.5 per DL hour) 12,500 Depreciation 2,000 Maintenance ($0,7 per DL hour) 17,500 Property taxes 1,500 Utilities ($0,4 per DL hour) 10,000 Insurance 1,000 During July, 24,500 direct labor hours were worked. The company incurred the following variable costs in July: indirect labor $30,200, supplies and lubricants $11,600, maintenance $17,500, and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs. a.) Prepare a flexible monthly budget for the Production Department for the relevant range between 24,000 and 26,000 DL hours with increments of 1000 DL hours. b.) Prepare a flexible budget…
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2 Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: 00:56:51 Mc τ Graw Hill @ 2 W S Direct labor hours Machine hours X Tarnish Industries uses departmental overhead rates and is planning on a $2.40 per machine hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. Multiple Choice # 3 O $394,800 O * E $189,600 D C $244,800 $ JOI 4 ● 4 R F % V Molding 79,000 DLH 102,000 MH 5 T G Lo 40 6 Finishing 164,500 DLH 85,500 MH Y & H 4 Q Search ► 11 ) O O L alt fi P - 112 { ? ctri + [ = prt sc ] pause delete backspace home num enter H
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