insurance cost should be allocated to the products
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Production workers for Zachary Manufacturing Company provided 4,300 hours of labor in January and 3,400 hours in February. The company, whose operation is labor intensive, expects to use 48,300 hours of labor during the year. Zachary paid a $111,090 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months.
Required
Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? (Do not round intermediate calculations.)
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- Baylor Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $198,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. What are the cash payments for manufacturing in the month of June?Sheridan Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at of plant capacity and producing 119, 400 units. Fixed costs for the period were cost of goods sold, and selling and administrative expenses. In July, normally a slack manufacturing month, Sheridan receives a special order for 10, 000 basketballs at each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses per unit because of shipping costs but would not increase fixed costs and expenses. (a) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e g. 15.25. Enter negative amounts using either a negative sign preceding the number e. g. or parentheses e. g. (45).) (b) Should Sheridan Inc, accept the special order?Rundle Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Direct labor Home 1: $63,000 Home 2: $108,000, Home 3: $181,000 Direct materials Home 1: 98,000 Home 2: 143,000 Home 3: 186,000 Assume Rundle needs to allocate two major overhead costs ($ 52,800 of employee fringe benefits and $12,,810 of indirect materials cost) among the three Jobs. required; Choose an appropriate cost driver for each of the overhead costs and determine the cost of each house ( round " allocation rate to 2 decimal places.)
