Please do not give solution in image format thanku (c)Restate the quarterly data by applying overhead as a set rate per batch.CostsDirect materialsDirect laborManufacturing overhead AppliedTotalProduction in batchesUnit cost (per batch)$$$1$$QuarterLA$$3 Khan Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the salesdepartment and the production department concerning a special-order product, TC-1. TC-1 is a seasonal product that is manufacturedin batches of 1,000 units. TC-1 is sold at cost plus a markup of 40% of cost.The sales department is unhappy because fluctuating unit production costs significantly affect selling prices. Sales personnel complainthat this has caused excessive customer complaints and the loss of considerable orders for TC-1.The production department maintains that each job order must be fully costed on the basis of the costs incurred during the period inwhich the goods are produced. Production personnel maintain that the only real solution is for the sales department to increase salesin the slack periods.Andrea Parley, president of the company, asks you as the company accountant to collect quarterly data for the past year on TC-1. Fromthe cost accounting system, you accumulate the following production quantity and cost data.CostsDirect materialsDirect laborManufacturing overheadTotalProduction in batchesUnit cost (per batch)177,000$126,000 $270,000217,00027Quarter$60,000165,000$420,000 $575,160140,16015$38,3443$108,00066,000210,000$384,000$64,0004$216,000132,000132.000$480,00012$40,000

Name: Please do not give solution in image format thanku (c)Restate the quar
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Description: Please do not give solution in image format thanku (c)Restate the quarterly data by applying overhead as a set rate per batch.CostsDirect materialsDirect laborManufacturing overhead AppliedTotalProduction in batchesUnit cost (per batch)$$$1$$QuarterL

Manufacturing overhead is one of the types of overheads which represents indirect expenditure which…

Business

Accounting

(c) Restate the quarterly data by applying overhead as a set rate per batch.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2TIF

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