If a table lamp requires 2 hours of fabrication and 1 hour of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 75,000 units are produced is
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- Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 1,015 hours each month to produce 2,030 sets of seat covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 1. Materials price vanance 1. Materials quantity variance 2. Labor rate variance 2 Labor efficiency variance 3. Vanable overhead rate variance 3. Variable overhead efficiency variance Per Set of Covers During August, the factory worked 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Total $ 42,000 $ 6,300 $3,150 $ 29.20 4.00 1.90 $ 35.10 Per Set of Covers $28.00 4.20 2.10 $34.30 At standard, each set of covers should…The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $9,600 variable factory overhead cost, $92,000 for fixed factory overhead cost and 2,000 direct labor hours (its practical capacity) to manufacture 4,000 pairs of boots in March. The factory used 3,700 direct labor hours in March to manufacture 3,800 pairs of boots and spent $16,800 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $95,000. Required: 1. Compute the variable overhead spending (rate) variance, the variable overhead efficiency variance, and the total variable overhead variance for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable…One of Waterway Company's activity cost pools is machine setups with estimated overhead of $240000. Waterway produces sparklers (360 setups) and lighters (640 setups). How much of the machine setup cost pool should be assigned to sparklers? O $120000 $153600 O $86400 $240000
- BrightWater, LLP uses a standard costing system to collect costs related to the production of its mineral-infused water. The direct labor standard for each unit is 1.25 hours at a standard cost of $11.00 per hour. During the month of November, BrightWater’s unit production used 9,820 direct labor hours at a total direct labor cost of $106,547. This resulted in production of 8,500 units for November. What is BrightWater’s labor efficiency variance for November? Select one: a. $10,328 favorable. b. $13,047 unfavorable. c. $8,855 favorable. d. $14,520 unfavorable. e. Unable to calculate from the information given.Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 54,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,040,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours During the year, the company had no beginning or ending inventories and it…Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Supreme using traditional costing using direct labor hours is: A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000.
- Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00Crystal Pools estimates overhead will utilize 200,000 machine hours and cost $800,000. It takes 3 machine hours per unit, direct material cost of $13 per unit, and direct labor of $22 per unit. What is the cost of each unit produced? Cost per unit $fill in the blank 1Main Street Ice cream company uses a plant wide allocation method to allocate overhead based on direct labor hours at a rate of $3 per labor hour. Strawberry and vanilla flavors are produced in department SV. chocolate is produced in department C. Sven manages Department SV and Charlene manages department C. The product costs (per thousand gallons) follow.
- Beerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $10 per pound and 0.5 hour of direct labor costing, $16 per hour. The variable overhead rate is $14 per direct labor hour, and the fixed overhead rate is $18 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit AnswerSilven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155Heintz Products uses activity-based costing to account for product costs. The plant manager has estimated the following cost drivers and rates. Activity Centers Materials inspection Equipment maintenance Machine setups Packing and shipping Cost Drivers Direct materials cost Machine-hours Number of production runs Pounds of finished output Rate per Cost Driver Unit 15% of materials cost $ 19 per machine-hour $ 6,370 per setup $ 4.20 per pound Direct materials costs were $508,000 and direct labor costs were $348,000 during November, when the plant finished 7,000 pounds of product, had 20 setups, and ran the machines for 15,000 hours. There were no work-in-process inventories. Required: Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work- in-Process Inventory and out to Finished Goods Inventory. Use the accounts Materials Inventory, Wages Payable, Work-in- Process Inventory, Finished Goods Inventory, and four…