Jordan Manufacturing Company produced 2,700 units of inventory in January Year 2. It expects to produce an additional 8,500 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 11,200 units. Direct materials and direct labor costs are $66 and $71 per unit, respectively. Jordan expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,700 units of product made in January. $ 4,900 173,000 140,000 Required B 22,000 214,500 Complete this question by entering your answers in the tabs below. Required A Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. Note: Round your answer to 2 decimal places. Predetermined overhead rate per unit Required A Required B >
Jordan Manufacturing Company produced 2,700 units of inventory in January Year 2. It expects to produce an additional 8,500 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 11,200 units. Direct materials and direct labor costs are $66 and $71 per unit, respectively. Jordan expects to incur the following manufacturing overhead costs during the Year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,700 units of product made in January. $ 4,900 173,000 140,000 Required B 22,000 214,500 Complete this question by entering your answers in the tabs below. Required A Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. Note: Round your answer to 2 decimal places. Predetermined overhead rate per unit Required A Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Jordan Manufacturing Company produced 2,700 units of inventory in January Year 2. It expects to produce an additional 8,500 units
during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 11,200 units. Direct materials
and direct labor costs are $66 and $71 per unit, respectively. Jordan expects to incur the following manufacturing overhead costs
during the Year 2 accounting period.
$ 4,900
173,000
140,000
Production supplies
Supervisor salary
Depreciation on equipment
Utilities
Rental fee on manufacturing facilities
Required
a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is
number of units.
b. Determine the cost of the 2,700 units of product made in January.
22,000
214,500
Complete this question by entering your answers in the tabs below.
Required A Required B
Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver
is number of units.
Note: Round your answer to 2 decimal places.
Predetermined overhead rate
per unit
Required A
Required B >
Transcribed Image Text:Required
a. Combine the individual overhead costs into a cost pool and calculate a
number of units.
b. Determine the cost of the 2,700 units of product made in January.
Complete this question by entering your answers in the tabs below.
Required A Required B
Determine the cost of the 2,700 units of product made in January.
Indirect overhead costs
Direct materials
Direct labor
Total
Allocated
Cost
$
0
< Required A
Required B
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