Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. overhead costs at $1,015,00o, and they estimated total direct labor costs at $1,400,000. At the beginning of 2018, they estimated total manufacturing The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169,450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company Units of product produced $12,300 $17,930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product?

Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. overhead costs at $1,015,00o, and they estimated total direct labor costs at $1,400,000. At the beginning of 2018, they estimated total manufacturing The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169,450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company Units of product produced $12,300 $17,930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied. d) How much was the production cost per unit (cost per crate) of finished product?

Name: 1/1100%Epsilon Manufacturing Company uses a predetermined manufacturi
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 1/1100%Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on apercentage of direct labor cost. At the beginning of 2018, they estimated total manufacturingoverhead costs at $1,015,000, and they estimated total direc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: How much was the production cost per unit (cost per crate) of finished product?

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Manufacturing overhead cost - it is the total indirect cost incurred during the manufacturing of a…

Q: Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a…

A: Since you have specifically asked for part c and d, so we have answered the same for you.

Q: Agassi Company uses a job order cost system in each of its three manufacturing departments.…

A: Lets understand the basics.The predetermined overhead rate is calculated as estimated overhead costs…

Q: Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage…

A: Predetermined manufacturing overhead rate = Estimated total manufacturing overhead costs /…

Q: This topic is about Cost Accounting. Please check the picture for the problem. Requirement:…

Q: A manufacturing company uses an activity-based costing system. The company has three products: A, B…

A: Overhead is the cost incurred by an entity on the production or selling of the goods.

Q: Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage…

A: Predetermined Manufacturing Overhead Rate = Estimated total manufacturing overhead costs / Estimated…

Q: Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would…

A: Relevant costs are those costs that are affected by a management decision. For instance here the…

Q: Grand, Inc. uses a standard cost system and provides the following information. (Click the icon to…

A: Variance analysis is a method of evaluating the difference between actual performances and planned…

Q: Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would…

A: RELEVANT COST Relevant costs can be defined as any cost relevant to a decision. A relevant cost is…

Q: ABC produces custom made evening wear. ABC uses a job-order costing system and allocates…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Best, Inc. uses a standard cost system and provides the following information. (Click the icon to…

A: Variance analysis compares a company's expected expenses or behavior to its actual statistics and…

Q: Fountain Garden Supplies uses a traditional costing system for allocating manufacturing overhead…

A: Predetermined overhead rate is the one which is determined based on estimated values at the…

Q: Spartan Corp. applies manufacturing overhead based on direct labor hours. For 2023, Spartan Corp.…

A: The manufacturing overhead refers to the indirect cost incurred by a factory for the production of…

Q: Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage…

A: The following calculations are done in the records of Epsilon manufacturing Company which uses an…

Q: JO cost accounting system

A: Direct labor = Factory overhead/Percentage of factory overhead on direct labor

Q: Taylor Company uses normal job costing. It allocates manufacturing overhead costs using a budgeted…

A: SOLUTION- T ACCOUNTS ALSO CALLED A LEDGER ACCOUNT . IT IS AN INFORMAL TERM FOR A SET OF FINANCIAL…

Q: Spartan Corp. applies manufacturing overhead based on direct labor hours. For 2023, Spartan Corp.…

A: Predetermined Overhead Rate:— It is the rate used to allocate manufacturing overhead cost to cost…

Q: Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: Fast Company has established the following overhead cost pools and cost drivers for the month of…

A: Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…

Q: 1. SIP Inc. (SIP) is plastic injection molding company specializing in front-end grilles. Bilchew…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: XYZ Ltd. is a manufacturing company that follows the cost allocation approach for overhead…

A: To calculate the overhead allocation rate for each cost pool, we divide the total cost of each pool…

Q: 1. Calculate the total cost & quotation price of Job #B4000, given that a margin of 20% is applied.…

A: Solution are as follows

Concept explainers

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.

Topic Video

Question

1/1
100%
Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a
percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing
overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000.
The administration and selling overheads are to be absorbed in each job cost at 15% of production
cost. Distribution cost should be added to each job according to quotes from outside carriage
companies.
The
company
wishes to quote for job # W500. Data for the job are as follows:
Direct materials cost
$169,450
Direct labour cost
$230,000
Direct labour hours
400 hours
Special Design Cost
Distribution quote from haulage company
Units of product produced
$12,300
S17,930
250 crates
a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for
2018.
b) How much manufacturing overhead was allocated to Job #W500?
c) Calculate the total cost & quotation price of Job #W50o, given that a margin of 25% is applied.
d) How much was the production cost per unit (cost per crate) of finished product?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Product design Number of product changes Machining Machine hours Material handling Number of set-ups X Estimated Use of Cost Driver Per Activity Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 10 150,000 100 What is the activity-based overhead rate for material handling? J
ABC Company produces a line of watches. The company uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2018: Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost $150,000 $300,000 $142,000 $276,000 Inventory balances on December 31, 2018, were as follows: Direct manufacturing labor cost in ending balance Accounts Work in process Finish goods Ending Balance 205,000 30,360 256,000 55,200 Cost of goods sold 609,000 190,440 By using the (Write-off Approach) to adjust the under- or overallocated manufacturing overhead amount, what is the ending balance of "Cost of Goods Sold"? 1. O617,000. 2. O613,000. 3. O 620,000. 4. O 633,000. 5. ONone of the above. Next OType here to search
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. * The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G V w 770,000 120,500 420,000 170,000 15,000 23,000 9,500 14,500 30,000 7,000 7,000 7,500 6,000 97,500 Rent 250,000 100,000 350,000 157,500 61,000 Repairs Fuel Indirect Labor 145,000 127,000 100,000 94,500 Indirect 56,500 60,000 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively. 7,500 202,500 94,000 60,000…
Archer Company produces leather jacket for individual and corporation. On September 1st 2016, three jobs are in process, with cost as follows in USD attached on picture below Questions : a. If the allocation base that the company use is direct materials, calculate the budgeted overhead rate b. Calculate the Manufacturing Overhead Cost for each job and the total of MOH allowed c. Calculate the total cost of WIP at the end of September 2016
Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169,450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost $12,300 Distribution quote from haulage company $17,930 Units of product produced 250 crates Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 201 How much manufacturing overhead was allocated to Job #W500? Calculate the total…
Epsilon Manufacturing Company uses a predetemined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1, 015,000, and they estimated total direct labor costs at $1, 400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: %23 Direct materials cost Direct labour cost Direct labour hours Special Design Cost Distribution quote from haulage company Units of product produced S169.450 $230,000 400 hours $12,300 $17,930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of…
I also know that the predetermined overhead rate is 40/DLH
Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at sı,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169.450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company Units of product produced $12,300 $17,930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is…
Requirement: Compute for the Factory overhead rate of Department G if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
Attire, Inc., is a jeans manufacturing company. Attire uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year: Estimated overhead $1,000,000 Expected activity 250,000 Actual activity (direct labor hours) 265,000 Units produced 500,000 Attire applies overhead cost to each unit by using predetermined plantwide overhead rate based on direct labor hours. Calculate the overhead cost per unit of jeans produced by Attire. a.$4.24 b.$2.65 c.$4.00 d.$2.12
please answer correct and complete with working thanks