Carson Manufacturing, Inc. makes refrigerator replacement parts. In May, Carson produced 2,000 units. Costs incurredwere as follows:Direct Labor per unit (2 hrs. @ $15/hr.):$30Direct Materials per unit:$15Indirect Labor (maintenance):$35,000Indirect Materials (total used):$2,000Manufacturing Overhead application rate (per unit):$5Given this data, calculate the total Prime Costs for the units produced in the month of May. Catalytic Chemical Corporation has a significant level of manufacturing overhead. After preparing their budget for the nextyear, management expects the following overhead costs (the cost driver for each overhead cost pool is also shown):ActivityTotal Cost Cost DriverMaintenance$20,000 Machine hoursMaterials receiving80,000 Shipments receivedMachine setups50,000 # of setupsInspection30,000 # of inspectionsThe expected activity for the year for various cost drivers is:Direct Labor Hours40,000Machine Hours20,000Shipments Received4,000Setups200Quality Inspections8,000The company is considering accepting a significant production contract. Estimates for the contract are as follows:Direct materials$100,000Direct labor (7,500 hours)$150,000Number of material shipments received290Number of inspections50Number of setups35Number of machine houre3,000NOTE: Round all per-unit costs to nearest cent.What amount of overhead would be allocated to the contract if a company-wide rate based on direct labor hours wereused?

Name: Carson Manufacturing, Inc. makes refrigerator replacement parts. In M
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Description: Carson Manufacturing, Inc. makes refrigerator replacement parts. In May, Carson produced 2,000 units. Costs incurredwere as follows:Direct Labor per unit (2 hrs. @ $15/hr.):$30Direct Materials per unit:$15Indirect Labor (maintenance):$35,000Indirect

The prime cost of an item seems to be the direct cost spent in the production process, which…

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Carson Manufacturing, Inc. makes refrigerator replacement parts. In May, Carson produced 2,000 un were as follows: Direct Labor per unit (2 hrs. @ $15/hr.): $30 Direct Materials per unit: $15 Indirect Labor (maintenance): $35,000 Indirect Materials (total used): $2,000

Carson Manufacturing, Inc. makes refrigerator replacement parts. In May, Carson produced 2,000 un were as follows: Direct Labor per unit (2 hrs. @ $15/hr.): $30 Direct Materials per unit: $15 Indirect Labor (maintenance): $35,000 Indirect Materials (total used): $2,000

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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