Doug Brown's Corporation manufactures soccer balls and basketballs. Overhead costs are currently allocated using direct labor hours. Soccer Basketballs Total Direct labor hours (unit) 25,000 100,000 125,000 No. of Units Shipped 60,000 50,000 110,000 Total Overhead Cost $315,000 What is the unit OH cost for basketballs if the total OH cost is allocated based on labor hours? a. $6.10 b. $1.63 c. $5.04 d. $6.30 e. $5.54
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- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
- Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursSwifty Corporation, Inc.currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead 5 Fixed overhead 8 Total $23 The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? $23 $15 $35 $181. WHAT WOULD BE THE PER UNIT OVERHEAD COST FOR PRODUCT SENEN IF DIRECT LABOR HOURS WERE THE ALLOCATION BASE? 2. WHAT WOULD BE THE PER UNIT OVERHEAD COST OF PRODUCT PETER IF ABC WERE USED? 3. WHAT WOULD BE THE PER UNIT OVERHEAD COST OF PRODUCT SENEN IF ABC WERE USED?
- Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST. Direct material cost per unit of RST Total estimated manufacturing overhead Total cost per unit of RST Total estimated machine hours, Direct labor cost per unit of RST $ 19 $308,000 $ 84 154,000 MH 27 $Shane's Cookware Company has three cost pools and overhead estimates are as follows: Activity Cost Pool Machine setups Assembly Machine maintenance Cost Driver Setups Number of parts Machine hours Estimated OH Cost 360,000 420,000 500,000 Use per Use per Product A Product B 8,000 4,000 20,000 36,000 9,000 41,000 A. Compute the OH allocation using the activity-based costing method for product A: 480000 B. Compute the OH allocation using the activity-based costing method for product B: 800000Bell Corporation manufactures computers. Assume that Bell: • allocates manufacturing overhead based on machine hours • estimated 8,000 machine hours and $86,000 of manufacturing overhead costs actually used 16,000 machine hours and incurred the following actual costs: (Click the icon to view the actual costs.) What is Bellredetermined overhead allocation rate? ● O A. $5.31/ machine hour B. $5.38/ machine hour C. $10.75/ machine hour O D. $10.63/ machine hour Data table Indirect labor Depreciation on plant Machinery repair Direct labor Plant supplies Plant utilities Advertising Sales commissions $ 12,000 49,000 12,000 71,000 3,000 9,000 34,000 27,000
- Pia Manufacturing Company has developed the following overhead cost formulas: (refer to image) Based on these cost formulas. The total overhead cost expected if 200 machine hours are worked is: Cost Formula Depreciation P500 Set up P400 plus PO.20 per machine-hour P50 plus PO.25 per machine-hour PO.40 per machine-hour Lubrication Utilities a. P620 b. P900 c. P170 d. P1,120Gell Corporation manufactures computers. Assume that Gell: • allocates manufacturing overhead based on machine hours • estimated 12,000 machine hours and $93,000 of manufacturing overhead costs • actually used 16,000 machine hours and incurred the following actual costs: What is Gell’s predetermined overhead allocation rate? a. $7.75/machine hour b. $5.81/machine hour c. $6.92/machine hour d. $5.19/machine hourXYZ company's prime costs total OMR 3,000,000 and its conversion costs total OMR 7,000,000. If direct materials are OMR 2,000,000 and factory overhead is OMR 6,000,000, then direct labor is: a. OMR 4,000,000. b. OMR 1,000,000. c. OMR 3,500,000. d. OMR 3,000,000. e. OMR 2,000,000.