am. 113. Chen Company uses activity-based costing. It budgets $825,000 of overhead cost to sustainably dispose of 3,300 tons of hazardouswaste.a. Compute the activity rate for hazardous waste disposal based on tons of hazardous waste.b. The company disposed of 5 tons of hazardous waste in completing Job 125. Allocate overhead cost to hazardous waste disposalas part of Job 125 using activity-based costing.Complete this question by entering your answers in the tabs below.Required A Required BCompute the activity rate for hazardous waste disposal based on tons of hazardous waste.ActivityBudgeted CostBudgeted UsageHazardous waste disposalActivity Rate

Step 1: Part a: Compute the Activity RateGiven:Budgeted cost for hazardous waste disposal:…

Answered: Chen Company uses activity-based…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 10E: Compute the total job cost for each of the following scenarios: a. If the direct labor cost method...

See similar textbooks

Similar questions

As the firm’s accountant you are required to write a report explaining your general approach to the use of cost accounts and in particular the problems of overhead costing. The company has two producing departments, machining and assembly, and one service department, the canteen. Direct departmental overhead for the coming year is estimated as machining K50,000, assembly K40,000 and canteen K10,000. Details of estimated indirect overhead are as follows: Rates K1,000 Depreciation K9,500 Light and power K600 DEPARTMENTAL DATA No. of Cost of Kilowatt hours employees equipment square feet Machining 600 20 K10,000…
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $254,000 and direct labor hours to be 20,000. Actual overhead for the year was $270,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 22,400 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined Overhead Rate
The company uses ABC and has determined the following activities, cost drivers and activity rates Activity Center Activity Driver Activity rate Direct labor usage Direct labor hours $3 per DL hrMachine usage Machine hours $8 per machine hrMachine setups Setups $200 per set up Design changes Design changes $400 per design change You have completed Job 101. Determine the cost of Job 101, if the job required $1,000 in Direct Material, $3,000 in Direct Labor, 500 direct labor hours, 75 machine hours, 2 setups and 1 design change.
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $262,000 and direct labor hours to be 20,000. Actual overhead for the year was $290,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined Overhead Rate 89 SEP 17 Next > S LAO
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $262,000 and direct labor hours to be 20,000. Actual overhead for the year was $290,000. Required: 1. Compute the predetermined overhead rate. 2. If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the company actually used 23,200 direct labor hours, how much manufacturing overhead is applied to their job? Applied Manufacturing Overhead 89 SEP 17 Next > A O
Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Drilling has just completed 74 units of a component for a customer. Each unit required 94 parts and 2.70 machine hours. The prime cost is $1,240 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required 1 Number of parts Number of machine hours Number of parts Number of finished units Required: 1. Compute the total manufacturing costs and the unit costs of the 74 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $174 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $294 per unit. Compute the full product cost per unit, including upstream, manufacturing, and…
Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $624,000 of overhead costs and $520,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the information on the following job cost sheet to determine the total cost of Job 56. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the predetermined overhead rate for this period? Overhead Rate Numerator: / 1 Denominator:
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 184,800 30,800 DLHs Purchase orders Number of orders $ 6,900 230 orders Parts management Number of part types $ 81,120 104 part types Board etching Number of boards $ 45,000 1,800 boards General factory Machine-hours $ 150,300 16,700 MHs Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company’s four products as follows: Activity Cost Pool Expected Activity Product A Product B Product C Product D Labor-related (DLHs) 7,000 14,300 4,400 5,100 Purchase orders (orders) 58 26 46 100 Parts management (part types) 30 18 37 19 Board etching (boards) 500 720 580 0 General factory…
Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machine hours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 47,600 machine hours were used. i. Calculate the predetermined overhead rate. ii. Calculate how much manufacturing overhead will be applied to production. iii. Is overhead over- or underapplied? By how much? iv. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased? Edit Format Table 12pt v Paragraph v BIUA Tv . O words
S Data Insights provides accounting services. The company computed the following activity rates using activity-based costing. The forensic accounting department has 10 employees, occupies 1,590 square feet, and completed 40 jobs. Activity Clerical support Activity Rate Building Supplies $ 690 per employee $50 per square foot $ 89 per job Compute overhead cost per job for the forensic accounting department. Activity Clerical support Building Supplies Total allocated cost Units produced (jobs) Overhead cost per job Activity Usage Activity Rate Allocated Cost $ 0
Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $612,000 of overhead costs and $510,000 of direct labor cost for the period. During March, Shire began and completed Job 56. 1. What is the predetermined overhead rate for this period? 2. Use the information on the following job cost sheet to determine the total cost of Job 56. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the predetermined overhead rate for this period? Overhead Rate Numerator: Denominator: Overhead Rate Overhead rate %3D
Shire Computer's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $696,000 of overhead costs and $ 580,000 of direct labor cost for the year. During MarchShire began and completed Job 13-56 . 1. What is the predetermined overhead rate for the year? 2. Use the information on the following cost sheet to determine the total cost of the job.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS