Denjar Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the followingInformation for the machine whose limited capacity is prohibiting the company from producing and selling additional units.Actual run time this weekMachine time available per weekActual run rate this weekIdeal run rateDefect-free output this weekTotal output this week (including defects)Required:23,310 minutes25,900 minutes8.00 units per minute10 units per minute149,184 units186,480 units1. and 2. With respect to the company's overall equipment effectiveness, calculate the following:Note: Do not round Intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest wholenumber.1-a. Utilization rate1-b. Efficiency rate.1-c. Quality rate1-d. Overall equipment effectiveness2-a. Utilization loss in units2-b. Efficiency loss in units2-c. Quality loss in units

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Principles of Accounting Volume 2

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Chapter4: Job Order Costing

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Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...

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Question

Denjar

Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the following
Information for the machine whose limited capacity is prohibiting the company from producing and selling additional units.
Actual run time this week
Machine time available per week
Actual run rate this week
Ideal run rate
Defect-free output this week
Total output this week (including defects)
Required:
23,310 minutes
25,900 minutes
8.00 units per minute
10 units per minute
149,184 units
186,480 units
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following:
Note: Do not round Intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole
number.
1-a. Utilization rate
1-b. Efficiency rate.
1-c. Quality rate
1-d. Overall equipment effectiveness
2-a. Utilization loss in units
2-b. Efficiency loss in units
2-c. Quality loss in units

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Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
Bolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and variable costs for the current year are as follows: Bolgers total fixed costs aggregate to 360,000. Bolgers labor agreement is expiring at the end of the year, and management is concerned about the effects of a new labor agreement on its break-even point in units. The controller performed a sensitivity analysis to ascertain the estimated effect of a 10-per-unit direct labor increase and a 10,000 reduction in fixed costs. Based on these data, the break-even point would: a. decrease by 1,000 units. b. decrease by 125 units. c. increase by 375 units. d. increase by 500 units.
Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances: rate, 19 unfavorable; efficiency (time), 14 favorable. If MinnOils standard labor rate is 7 per hour, determine the actual wage rate per hour and the actual hours worked.
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
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The following information applies to questions 11 and 12 Hyjuk Limited manufactures scuba tanks. The following information was obtained for the six months ending December 2020: Month Scuba tanks sold Production overheads ($ thousands) July 130 38.8 August 190 53.6 September 120 38.5 October 150 40.8 November 100 32.9 December 160 48 Use the high-low method to answer questions: a. Estimate the variable production overhead cost per scuba tank. b. Estimate the fixed production overhead cost.
The controller of Sandhill Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $2,880 3,273 3,928 4,632 3,491 4,844 X Your answer is incorrect. Total Machine Hours 3,820 Variable cost per machine hour $ 4,364 6,546 8,619 5,455 8,730 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) 1352
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