Campbell Manufacturing Company produced 1,600 units of inventory in January Year 2. It expects to produce an additional 8,700 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 10,300 units. Direct materials and direct labor costs are $77 and $61 per unit, respectively. Campbell expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $5,300 191,000 138,000 24,000 182,450 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 1,600 units of product made in January
Campbell Manufacturing Company produced 1,600 units of inventory in January Year 2. It expects to produce an additional 8,700 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 10,300 units. Direct materials and direct labor costs are $77 and $61 per unit, respectively. Campbell expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $5,300 191,000 138,000 24,000 182,450 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 1,600 units of product made in January
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Campbell Manufacturing Company produced 1,600 units of inventory in January Year 2. It expects to produce an additional
8,700 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 10,300
units. Direct materials and direct labor costs are $77 and $61 per unit, respectively, Campbell expects to incur the following
manufacturing overhead costs during the Year 2 accounting period.
Production supplies
Supervisor salary
Depreciation on equipment
Utilities
Rental fee on manufacturing facilities
Required
a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost.
driver is number of units.
b. Determine the cost of the 1,600 units of product made in January.
$ 5,300
191,000
138,000
24,000
182,458
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