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cation and Predetermined Rates (LO 6-1, 2, 3) Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Plastic $600,000 Direct material Direct labor Overhead: 300,000 180,000 Leather $620,000 380,000 160,000 Total $ 1,220,000 680,000 340,000 Material handling overhead 258,400 Fabrication overhead 357,000 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? a. Material handling prod

cation and Predetermined Rates (LO 6-1, 2, 3) Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Plastic $600,000 Direct material Direct labor Overhead: 300,000 180,000 Leather $620,000 380,000 160,000 Total $ 1,220,000 680,000 340,000 Material handling overhead 258,400 Fabrication overhead 357,000 Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? a. Material handling prod

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 6-50 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3) Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Direct material Direct labor Overhead: Material handling overhead Plastic $ 600,000 300,000 180,000 Leather $ 620,000 380,000 160,000 Total $ 1,220,000 680,000 340,000 258,400 357,000 Fabrication overhead Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) % of direct-materials cost % of direct-labor cost
Transcribed Image Text:Exercise 6-50 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3) Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Direct material Direct labor Overhead: Material handling overhead Plastic $ 600,000 300,000 180,000 Leather $ 620,000 380,000 160,000 Total $ 1,220,000 680,000 340,000 258,400 357,000 Fabrication overhead Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) % of direct-materials cost % of direct-labor cost
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