Joe Barker is the production manager of Auto Parts Company (APC) and has been asked to prepare 2020's endingfinished goods budget for the S222 product. Based on historical figures, Joe determines the following informationregarding direct materials, direct labor and manufacturing overhead for the S222 product. Direct Materials Costs per Unit$1.10 per unit Direct Labor Cost per Direct Labor Hour (DLH) $15 per DLH DLH per Unit 0.25 DLH per unitPredetermined Manufacturing Overhead Rate $4 per DLH Calculate the value of the cost of goods manufactured perunit.

Step 1:Total Cost is the cost which is incurred to manufacture a product. Total Cost Includes Cost…

Answered: Joe Barker is the production manager of…

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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ABC Ltd manufactures two products: Basic and Deluxe. The company expects to produce andsell 1,100 units of Basic and 1,600 units of Deluxe during the current year.Currently in the traditional costing system, the company has been using direct labour hours asthe single cost driver for allocation of manufacturing overheads to products. The budgetedmanufacturing overheads for the next period are $35,000.The company is considering to implement the activity-based costing (ABC) system. Theaccountant has analysed the budgeted production overheads and identified various costs inactivity centres with appropriate cost drivers:Activity Centre Costs Cost DriverMaintenance costs $7,000 Direct labour hoursSet up costs $12,000 Number of production runQuality inspections $7,020 Number of inspectionsStores receiving $3,480 Number of component deliveriesStores issues $5,500 Number of issues$35,000The analysis also revealed the following information:Basic DeluxeDirect materials cost per unitDirect labour…
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Sweet Acacia Company is preparing its manufacturing overhead budget for 2022. Relevant data are as follows: 1. Units to be produced (by quarters): 9,700, 12,000, 15,100,17,600 2. Direct labour: 1.4 hours per unit 3. Variable overhead costs per direct labour hour: indirect materials $0.70; indirect labour $1.10; and maintenance $0.50 4. Fixed overhead costs per quarter: supervisory salaries $34,900; depreciation $16,400; and maintenance $15,500 Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round variable cost per unit to 2 decimal places, e.g. 15.25.) SWEET ACACIA COMPANY Manufacturing Overhead Budget For the Year Ending December 31, 2022 1 2 Quarter $ $ $ $ $ $ $ $ $ $ Year
Chefs Company developed the following standard costs for its product for 2022: CHEFS COMPANY Standard Cost Card Cost Elements Standard Quantity × Standard Price/Rate = Standard Cost Direct materials 4 pounds $ 10 $40 Direct labor 2 hours 20 40 Variable overhead 2 hours 8 16 Fixed overhead 2 hours 4 8…
The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 3,960 kayaks during 2020. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.00 per pound, and the finishing kits cost $150 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $19 per hour, and the type II are paid $16 per hour. Manufacturing overhead is budgeted at $381,520 for 2020, broken down as follows. Variable costs Indirect materials Manufacturing supplies Maintenance and utilities Fixed costs Supervision Insurance Depreciation Total Polyethylene powder Finishing kits Type I labor Type II labor Indirect materials Manufacturing supplies Maintenance…
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Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2020: Budgeted and Standard Data Actual Data Material 1/4 lb. @ $14 per pound Produced 6,100 units Labor 1.4 hrs. @ $16 per hour Materials purchased 1,600 lbs. for $13.70/pound Total fixed overhead $84,000 Materials used 1,520 lbs. Variable overhead $6.50 per unit Labor worked 8,740 hrs. at $15.90/hour Production 6,000 units Total overhead $122,000 How much is the flexible budget for overhead for 2020? $122,000 $123,000 $127,100 $124,300 $123,650
subject:accounting
Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2020, MCP estimated the following standard costs for one of their most popular products. Budgeted quantity Budgeted price Direct materials 2 pounds Direct labor 0.40 hours $2.30 per pound $15.00 per hour During September, MCP produced and sold 1,000 units using 2,200 pounds of direct materials at an average cost per pound of $2.00 and 360 direct labor hours at an average wage of $15.15 per hour. The direct material efficiency variance during September is OA. $460 favorable OB. $660 unfavorable OC. $660 favorable OD. $460 unfavorable
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $13 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Actual Results 43,700 pounds @ $8.20 per pound 21,400 hours @ $16.60 per hour $ 287,500 7,200 units

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