Honth April May June July Machine-Hours 63, e00 53,000 73,000 84,000 Cost $115,000 $138,000 $326,000 $193,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 53,000-machine-hour level of activity in May is as follows $ 25,000 28,000 85,000 $138, 000 Utilities (variable) Supervisory salaeies (fixed) Maintenance (mixed) Total overhead cost The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $193,000 of overhead cost in July was maintenance cost. (Hint To do this, first determine how much of the $193,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the releven range) (Round the "Variable cost per unit" to 2 decimal places.)

Honth April May June July Machine-Hours 63, e00 53,000 73,000 84,000 Cost $115,000 $138,000 $326,000 $193,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 53,000-machine-hour level of activity in May is as follows $ 25,000 28,000 85,000 $138, 000 Utilities (variable) Supervisory salaeies (fixed) Maintenance (mixed) Total overhead cost The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $193,000 of overhead cost in July was maintenance cost. (Hint To do this, first determine how much of the $193,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the releven range) (Round the "Variable cost per unit" to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 7-50 (Algo) Estimate Direct Labor Costs from Overhead Data (LO 7-2) Kenmore Fabrication estimated that direct labor cost for the year would be $648,800. The company also estimated that fixed overhead would be $486,600 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($486,600) and variable overhead was also incurred as expected. There was $31,650 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
Random Inc. Cost data for the last 3 years Overhead Costs Units Produced January-17 February-17 $78,000 Use regression and show the equation used for Random to separate overhead into fixed and variable components. How much of the change in costs will this equation predict? 5,679 $91,000 $100,000 6,751 7,539 March-17 April-17 Мay-17 June-17 $78,000 $89,000 5,335 What is the variable cost per unit for overhead? Round to the nearest cent 6,480 $93,000 $87,000 $94,000 June-17 7,630 What is the fixed overhead cost per month? Round to the nearest dollar July-17 August-17 September-17 October-17 6,331 7 998 7,998 5 043 5,943 Random analyzes their other costs and finds the following (in addition to the overhead costs above): Direct Mat $81,000 $85,000 $104,500 $104,000 Each unit of inventory uses 2 gallons of materials and each gallon costs $3 On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift Each month Random spends $26,500 on selling and…
Exercise 6-48 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-3, 4, 5) Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for next month. A1 B2 Total Revenue $ 170,000 $ 510,000 $ 680,000 Direct material 65,000 130,000 195,000 Direct labor 54,000 128,250 182,250 Overhead: Direct-material related 42,900 Direct-labor related 40,095 Required: Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month. b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month? d. What is the total…
Travelcraft Company manufactures a complete line of fiberglass suitcases and attaché cases. The firm has three manufacturing departments: Molding, Component, and Assembly. There are also two service departments: Power and Maintenance. The sides of the cases are manufactured in the Molding Department. The frames, hinges, and locks are manufactured in the Component Department. The cases are completed in the Assembly Department. Varying amounts of materials, time, and effort are required for each of the cases. The Power Department and Maintenance Department provide services to the three manufacturing departments. Travelcraft has always used a plantwide overhead rate. Direct-labor hours are used to assign overhead to products. The predetermined overhead rate is calculated by dividing the company's total estimated overhead by the total estimated direct-labor hours to be worked in the three manufacturing departments. Karen Mason, director of cost management, has recommended that Travelcraft…
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K Maintenance costs at Red Dot Manufacturing over the past six months are listed in the following table. (Click the icon to view the maintenance costs.) Using the high-low method, what is the total maintenance costs at Red Dot Manufacturing if 18,000 machine hours were used? OA. $7,875 OB. $15,660 O C. $10,175 O D. $9,950 Maintenance costs Month January February March April May June Maintenance cost $9,500 $9,860 Print E $8,600 $8,840 $8,600 $8,100 Done Machine hours 15,800 17,300 14,500 16,100 17,100 15,500 - X - Remaining: 01:
Required information Exercise 3-34 Overapplied or Underapplied Overhead (LO 3-4, 3-5) [The following information applies to the questions displayed below.] The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 433,000 Actual manufacturing overhead: Depreciation Property taxes Indirect labor Supervisory salaries Utilities Insurance Rental of space Indirect material (see data below) Indirect material: Beginning inventory, January 1 Purchases during the year Ending inventory, December 31 Exercise 3-34 Part 1 Predetermined overhead rate $230,000 20,000 81,000 200,000 per DLH 58,000 30,000 301,000 79,000 Required: 1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)…
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Question Content Area Power Co.'s labor information for June is as follows: Direct labor hours worked 65,400 Standard labor hours for units manufactured 68,000 Unfavorable direct labor rate variance $19,620 Total payroll for labor $791,340 A. What was the actual labor rate per hour? Round your answer to two decimal places. Actual labor rate $fill in the blank 1 per hour B. What was the standard labor rate per hour? Round your answer to two decimal places. Standard labor rate $fill in the blank 2 per hour C. What was the total standard labor cost for units produced in June? Total standard labor cost $fill in the blank 3 D. What was the direct labor time variance for June? Direct labor rate variance $fill in the blank 4