Hydro Sports budgets overhead cost of $720,000for the year. The company manufactures two typesof jet skis: standard and deluxe. Budgeted directlabor hours per unit are 8 for the standard modeland 12 for the deluxe model. The companybudgets production of 180 units of the standardmodel and 180 units of the deluxe model for theyear. 1. Compute the total number of budgeteddirect labor hours for the year. 2. Compute theplantwide overhead rate using budgeted directlabor hours. 3. Compute overhead cost per unit foreach model using the plantwide overhead rate.Actual direct labor hours per unit are 8 for thestandard model and 12 for the deluxe model.

Overhead rate is the rate used to allocate manufacturing overhead cost to cost objects. It is…

Hydro Sports budgets overhead cost of $720,000 for the year. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours per unit are 8 for the standard model and 12 for the deluxe model. The company budgets production of 180 units of the standard

Hydro Sports budgets overhead cost of $720,000 for the year. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours per unit are 8 for the standard model and 12 for the deluxe model. The company budgets production of 180 units of the standard

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly, $168,000; setup, $182,700; and inspection, $152,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 7,250 dlh 21,000 dlh 52 setups 91 inspections Bass boat 21,750 7,000 383 634 29,000 dlh 28,000 dlh 435 setups 725 inspections Each product is budgeted for 4,500 units of production for the year. а. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly 24 per direct labor hour Setup 24 per setup Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat per unit
am. 112.
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $20 per unit and $35 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $45 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Pools Driver Square Feet of Pine Square Feet of Quilting Square Feet of Filling Number of Boxes Number of Inspections How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number. Total Cost per Unit Framing Padding Filling Labeling Inspection Direct Material Direct Labor Cost Overhead Total per Unit $ Estimated Use per Use per Overhead Twin Double Twin $245,000 5,000 2,000 230,000 130,000 100,000 240,000 500,000 300,000 240,000 800,000 400,000 160,000 12,000 4,000 Double
The total factory overhead for Big Light Company is budgeted for the year at $1,204,000. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 11,800 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 12,200 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unit
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication _______direct labor hours Assembly _______direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication Department rate $______per dlh Assembly Department rate $______per dlh c. Determine the factory overhead allocated per unit for each product using the department…
Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $18 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,440 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,100 4,400 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Units to produce Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials Budget…
Water Sports Company budgets overhead cost of $840,000 for the year. The company manufactures two types of boats: Pontoons and Speedboats. Budgeted direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model. The company budgets production of 200 units of the Pontoon model and 200 units of the Speedboat model for the year. What is the total number of budgeted direct labor hours for the year? Multiple Choice O O 400 direct labor hours. 1,600 direct labor hours. 3,200 direct labor hours. 8,000 direct labor hours. 4,800 direct labor hours.
Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include: Variable indirect materials $ 4.75 per hammock Variable indirect labor $ 11.25 per hammock Other variable overhead $ 3.25 per hammock Salaries $ 50,000 per quarter Insurance $ 6,000 per quarter Depreciation $ 25,000 per quarter Prepare Bonita's manufacturing overhead budget for the fourth quarter.
The total factory overhead for Big Light Company is budgeted for the year at $1,703,240. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 17,300 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 17,500 units. Each desk lamp requires 2 hours of direct labor. a Determine the total number of budgeted direct labor hours for the year. direct labor hours b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. per direct labor hour c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. per unit per unit Night Lights Desk Lamps
The total factory overhead for Bardot Marine Company is budgeted for the year at $2,932,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require six direct labor hours for manufacture. Each product is budgeted for 11,500 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year.______ direct labor hours b. Determine the single plantwide factory overhead rate.$_____ per dlh c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Speedboat $____per unit Bass boat $____per unit
Xander Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36 skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect. At the beginning of the year Xander has an inventory of 458,000 skeins of wool at a cost of $961,800 and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is zero. Xander uses the FIFO inventory cost-flow method. Xander blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 200,000 blue rugs per year. The budgeted selling price is $2,000 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero. Xander makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pools—one for weaving and the other for dyeing. Weaving overhead is allocated to products based on direct…
Picozzi Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of January, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the planning budget for January would be closest to: