Daniel is currently working on assembling some cost accounting numbers for the upcoming year for a client who produces disposable utensils. The factory has the following costs: Factory Insurance - $56,800 Factory Supervisor's Salary - $201,200 Direct Materials (Plastic) - $29,100 Cardboard for Packaging - $13,700 Depreciation on Factory Equipment - $121,400 Assembly Line Worker Wages - $37,700. The Direct Labor (DL) costs consisted of 9,300 DL hours and 5,000 machine hours. Management has decided to proceed using a simple costing system resulting in a plant-wide cost pool. What is the budgeted MOH rate using one plant-wide pool based on machine hours? A) $0.01 B) $11.79 C) $30.10 D) $75.88

Daniel is currently working on assembling some cost accounting numbers for the upcoming year for a client who produces disposable utensils. The factory has the following costs: Factory Insurance - $56,800 Factory Supervisor's Salary - $201,200 Direct Materials (Plastic) - $29,100 Cardboard for Packaging - $13,700 Depreciation on Factory Equipment - $121,400 Assembly Line Worker Wages - $37,700. The Direct Labor (DL) costs consisted of 9,300 DL hours and 5,000 machine hours. Management has decided to proceed using a simple costing system resulting in a plant-wide cost pool. What is the budgeted MOH rate using one plant-wide pool based on machine hours? A) $0.01 B) $11.79 C) $30.10 D) $75.88

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

See similar textbooks

Similar questions

Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour. A. What is the standard materials cost per unit for a widget? 8. What is the standard labor cost per unit for a widget?
You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour. 2. Determine the amount of applied overhead if 18,600 actual hours are worked in the upcoming year. Required 1 Required 2 Complete this question by entering your answers in the tabs below. $ 341,800 61,500 140,000 211,998 Predetermined Overhead Rate 39,400 33,750 22,500 55,000 19, 200 $925,148 Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.91 per hour. Note: Round your answer to 2 decimal…
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 338,800 58,500 142,500 235,790 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.41 per hour. 2. Determine the amount of applied overhead if 17,900 actual hours are worked in the upcoming year. Required 1 40,400 33,750 22,500 54,500 25,700 $ 952,440 Complete this question by entering your answers in the tabs below.
Oberti Guitar Company makes high-quality customized guitars. Oberti uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the beginning of the year, the company estimated that total manufacturing overhead costs would be $300,000 and that 20,000 direct labor hours would be worked. At year-end, Anthony, the company's founder and CEO, gives you the following information regarding Oberti's operations. 1. The beginning balances in the inventory accounts were: Raw Materials Inventory $8,000 Work in Process Inventory $26,000 Finished Goods Inventory $32,000 2. During the year, the company purchased raw materials costing $97,000. All purchases were made on account. 3. The production department requisitioned $100,000 of raw materials for use in production. Of those, 70% were direct materials and 30% were indirect materials. 4. The company used 21,000 direct labor hours at a cost of $14 per hour during the year (credit…
Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Fogelin has four public relations specialists and office staff. At the beginning of the year, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403,300 and a total of 7,200 billable hours for the year. The office and administrative costs were estimated at $676,000. What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)
Fatima Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $822,000 Shop direct labor 600,000 Shop and repair equipment depreciation $42,200 Shop supervisor salaries $85,400 Shop property taxes $17,200 Shop supplies $13,400 Advertising expense 16,400 Administrative office salaries 70,700 Administrative office depreciation expense 9,000 The average shop direct labor rate is $31.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.
Olney Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, attached in screen shot below
Sofía Gomez runs a mobile pet grooming service. She charges $30 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 930 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 4,420 Van insurance expense 1,460 Indirect materials 1. Predetermined overhead rate 2. Total job cost 3. Price quote $ 1,130 Tool depreciation 730 Other overhead 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofía has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofía targets a markup of 20% on the total cost for each job, what price should she quote for the job in part 2? + $ 480 1,080 Check my w
Can you please solve this accounting problem?
Molly just started working as a junior accountant at a manufacturing firm that uses job order costing. She has asked you, the senior accountant, for some help with calculating overhead allocation rates. The following data has been provided for the year ended December 31, 2020: Estimated Actual Machine Hours Direct Labor Hours Direct Labor Cost Manufacturing Overhead Cost 10,000 20,000 $200,000 $560,000| 11,000 19,000 $190,000 $600,000| Actual data from August is as follows: Machine Hours Direct Labor Hours Direct Labor Cost August 900 1,600 $16,000 a. If the company uses a normal costing system and has selected machinehours as the appropriate allocation base, what is the allocation rate? b. Using the allocation rate determined in part 1, what is the amount of overhead allocated for the month ended August 31, 2020