The image contains a section of a financial analysis exercise related to overhead allocation for products using the traditional direct labor hours method. Here's a detailed transcription suitable for an educational website:---### Overhead Allocation Exercise**(i) Allocation of Overhead to Each Product****Question:** How much overhead will be allocated to each product using the traditional direct labor hours allocation base? *(Round per unit rates to 2 decimal places, e.g., 3.54 and final answers to 0 decimal places, e.g., 45,286.)*| Product | AM-2 | FM-9 ||---------|------|------|| Overhead allocated to each product | $____ | $____ |---**(ii) Overhead Cost Per Unit****Question:** What overhead cost per unit will be allocated to each product? *(Round answers to 2 decimal places, e.g., 15.25.)*| Product | AM-2 | FM-9 ||---------|------|------|| Overhead cost per unit | $____ | $____ |---This exercise requires calculating how overheads are distributed across products using a traditional accounting method based on direct labor hours. The task involves determining both the total overhead allocation and the per-unit overhead costs for products AM-2 and FM-9. Calculation precision is emphasized, with specific rounding instructions provided for accuracy. **Swifty Electronics Components Manufacturer****Product Information:**| | **AM-2** | **FM-9** ||------------------------|----------|----------|| **Units produced** | 20,000 | 6,000 || **Direct labor hours required for production** | 10,000 | 15,000 || **Units per batch** | 4,000 | 600 || **Shipping weight per unit** | 0.50 lbs. | 10 lbs. |**Additional Information:**- The company incurs $860,000 in overhead per year.- Overhead has traditionally been applied based on direct labor hours. This data outlines the production details of Swifty's two product lines, AM-2 and FM-9, along with associated labor, batch, and shipping metrics. The overhead costs are distributed using the direct labor hours as the basis for application.

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Answered: (i) How much overhead will be allocated…

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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For each of the following independent cases (A to E), compute the missing values in the table: Case B C D E Prime Conversion Cost Cost $ 9,450 $ 16,420 $ 56,200 110,700 49,250 Direct Materials 4,070 10,150 41,800 19,600 Direct Manufacturing Labor Overhead BIM $ 7,440 11,350 13,600 11,040 24,800 23,900 Total Manufacturing Cost 42,390 68,850 56,600
Distribution of Direct and Indirect Overhead Costs to Producing Departments. Ming Chemical Co. operates with three producing departments—Blending, Testing, and Terminal. The overhead items and amounts for the period, along with the bases for their allocation, are listed below. How much is the total overhead to be charged to Terminal Department? Round your answer to whole number. 2. What is the overhead rate per direct labor hour under Blending Department?. Round your answer in two decimal places.
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expens than the home consoles. The company only recently began producing the home model. Since the introduction of the new product. profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,366,000 based on production of 340.000 handheld consoles and 89,000 home consoles. Direct labor and direct materials costs were as follows. Direct labor Materials Handheld $1,294, 500 790,000 Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead…
f) Overhead is applied to jobs at a rate of 120% direct labor cost Calculations: Debit Credit Db Cr
Using the following data, determine the unit product cost under variable costing. Units produced 1,000 Direct materials $6 Direct labor $10 Fixed overhead $6,000 Variable overhead $6 Fixed selling and administrative $2,000 Variable selling and administrative $22 $24 $28 $30 $2
Required: Prepare a quantitative comparison of the traditional and activity-based cost assignments.
Godo
Using this information from Planters, Inc., what is the cost per unit under variable costing? Round to the nearest penny, two decimal places. Planters, Inc data Cost Production Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Amount 11,808 units $231 271 105 1,150,457
for 11; 12; 13; and 15 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place. 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Note: Round intermediate calculations and your "Percentage" answers to 2 decimal places. 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place.
Please use the information given to answer the question
For each of the following independent cases (A to E), compute the missing values in the table: Total Manufacturing Cost Case A B CO C D E Prime Conversion Direct Cost Cost Direct Manufacturing Materials Labor Overhead $ 9,560 $ 16,470 $ 3,950 10,130 41,500 20,500 57,300 110,600 48,750 7,400 12,650 14,400 $ 10,860 25,200 24,300 42,730 69,250 57,500
ok t For each of the following independent cases (A to E), compute the missing values in the table: Case A C D E Prime Conversion Cost Cost $ 9,560 $ 16,470 $ 57,300 110,600 48,750 Direct Materials 3,950 10,130 41,500 20,500 Direct Manufacturing Labor Overhead 7,400 12,650 14,400 $ 10,860 25,200 24,300 Total Manufacturing Cost 42,730 69,250 57,500

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