Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an ap rate based on direct labor hours. Required: a. For 2019, the company's cost accountant estimated that total overhead costs incurred would be $676,700 and that a tota direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run. (Round your answer to 2 decimal places.) Predetemined overhead application rate b. A production run of 340 coffee mugs used raw materials that cost $590 and used 40 direct labor hours at a cost of $11.70 p Calculate the cost of each coffee mug produced. (Do not round intermediate calculations. Round your answer to 2 decimal Cost per coffee mug produced

Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an ap rate based on direct labor hours. Required: a. For 2019, the company's cost accountant estimated that total overhead costs incurred would be $676,700 and that a tota direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run. (Round your answer to 2 decimal places.) Predetemined overhead application rate b. A production run of 340 coffee mugs used raw materials that cost $590 and used 40 direct labor hours at a cost of $11.70 p Calculate the cost of each coffee mug produced. (Do not round intermediate calculations. Round your answer to 2 decimal Cost per coffee mug produced

Name: Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturi
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Description: Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an applicationrate based on direct labor hours.Required:a. For 2019, the company's cost accountant estimated that total overhead costs i

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application
rate based on direct labor hours.
Required:
a. For 2019, the company's cost accountant estimated that total overhead costs incurred would be $676.700 and that a total of 67,000
direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a
production run. (Round your answer to 2 decimal places.)
Predetemined overhead application rate
b. A production run of 340 coffee muqs used raw materlals that cost $590 and used 40 direct labor hours at a cost of $11.70 per hour.
Calculate the cost of each coffee mug produced. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Cost per coffee mug produced

Check my work Mode
Calculate the cost of each coffee mug produced. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Cost per coffee mug produced
c. At the end of October 2019, 270 coffee mugs made in the production run in part b had been sold and the rest were in ending
inventory. Calculate (1) the cost of the coffee mugs sold that would have been reported in the income statement and (2) the cost
included in the October 31, 2019, finished goods inventory. (Ro not round intermediate calculations. Round your answers to 2
decimal places.)
Cost of coffee mugs sold
Cost of coffee mugs in inventory

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Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2023, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 222. Job stats are as follows: Direct Materials $173,250 Direct Labour Cost $240,000 Direct Labour Hours 500 hours Special Design Cost $8,750 Distribution quote from haulage company $21,700 Units of product produced 400 cartons Compute Miguel’s Manufacturing Company predetermined manufacturing overhead rate for 2023.
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compute the total manufacturing cost assigned to jobs in january in each department Pharoah Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2025, the following estimates were made for the year. Department D E K Manufacturing overhead $1,012,500 $1,462,500 $810,000 Direct labor costs $1,350,000 $1,125,000 $405,000 Direct labor hours 90,000 112,500 36.000 Machine hours 360,000 450,000 108,000 The following information pertains to January 2025 for each manufacturing department. Department D E K Direct materials used. $126.000 $113,400 $70,200 Direct labor costs $108,000 $99,000 $33,750 Manufacturing overhead incurred $89,100 $111,600 $71.100 Direct labor hours 7,200 9,900 3,150 Machine hours 30,600 40,500 9,360
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