Chan Company identified the following budgeted data for this year. The company manufactures two types of scooters:standard and fast.ActivityHandling materialsQuality inspectionPurchasingTotalBudgeted Overhead Cost$ 625,00090,00025,000$ 740,000Budgeted Activity100,000 parts1,500 inspections1,000 orders1. Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted directlabor hours.2. The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overheadcost per unit for each model.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours.NumeratorDenominatorBudgeted overhead costBudgeted direct labor hours The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Computeoverhead cost per unit for each model.StandardFastPlantwideOverhead RateDirect LaborHours per UnitOverhead Costper Unit

The plantwide overhead rate is calculated by dividing the total budgeted overhead cost by the total…

Answered: Chan Company identified the following…

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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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.40q Indirect labor $4,000 + $1.40q Utilities $5,300 + $0.30q Supplies $1,600 + $0.10q Equipment depreciation $18,500 + $3.00q Factory rent $8,200 Property taxes $2,500 Factory administration $13,600 + $0.60q The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 70,480 Indirect labor $ 9,340 Utilities $ 7,010 Supplies $ 2,250 Equipment depreciation $ 31,100 Factory rent $ 8,600 Property taxes $ 2,500 Factory…
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Sunland Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sunland is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead, Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (1) One mobile safe (2) Mobile Safes One walk-in safe 200 300 450 800 Walk-in Safes 435.2 50 The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) 200 350 1.700 per unit per unit
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