Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2017. Machinsetup-hours is the only driver of manufacturing overhead costs. Light Up has a set up capacity of 1,056 hours(Click the icon to view the information)Calculate the manufacturing overhead costs budget (label it Schedule 5).Schedule 5: Manufacturing Overhead Costs Budgetfor the Year Ending December 31, 2017Machine Setup Overhead CostsTotal manufacturing overhead costsGILEDClear allCheck a Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2017 Machinesetup-hours is the only driver of manufacturing overhead costs. Light Up has a set up capacity of 1,056 hours.Data table1 Quantity of lamps to be produced2. Number of lamps to be produced perbatch3. Setup time per batchVanable cost-$80 per setup-hourFixed cost $72,000Knox23.000 lamps125 lamps/batch4 hours/batchAyer16.000 lamps250 lamps/batch5 hours/batch- X

INTRODUCTION: A type of operational expense that is unrelated to a facility's output is…

Answered: Light Up Corporation manufactures and…

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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Maggie Sound manufactures headphone cases. During July 2021, the company produced 108,000 cases and recorded the following cost data: Standard Cost Information Quantity Cost Direct Materials 3 parts $0.17 per part Direct Labor 0.03 hours $8.00 per hour Variable Manufacturing Overhead 0.03 hours $9.05 per hour Fixed Manufacturing Overhead 2,020 hours $17.20 per hour Actual Cost Information Quantity Cost Direct Materials 202,000 parts $0.24 per part Direct Labor 1,610 hours $8.30 per hour Variable Manufacturing Overhead $8,500 total cost Fixed Manufacturing Overhead $27,600 total cost (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Calculate the variable overhead cost and efficiency variances.
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 17,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead (a) (1) (2) 6 yards at $5.00 per yard (b) 1.20 hours at $13.00 per hour 1.20 hours at $6.90 per hour (fixed $4.00; variable $2.90) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $68,000, and budgeted variable overhead was $49,300. Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) Total materials variance Materials price variance Materials quantity variance Total labor variance Standard (per unit) Labor price variance…
Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Total Machine Month Overhead Hours Jan. $6, 288 1,980 Feb. 6,460 2,090 Mar. 5,987 1,745 Apr. 5,559 1,560 Мay 6,032 1,865 June 6,341 2,012 Using the high-low method, total monthly fixed overhead cost is calculated to be:
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders 145000 500 orders Machine Setup Setup 319500 450 setups Machining Machine hours 1575000 125000 MH Assembly Parts 1250000 1000000 parts Inspection Inspections 325000 500 inspections If overhead is applied using activity-based-costing, the overhead application rate for ordering and receiving is?
Cruise Manufacturing has two direct cost categories direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs Direct Cost Categories. Standard Quantity Cost per Input Unit pound Direct Materials 12 pounds per output unit $15 per Direct Labor 3 hours per output unit $21 per hour Manufacturing Overhead Cost per Input Unit Variable Manufacturing Overhead $12 per Direct Labor Hour By the end of Apr 2019 Cruise Manufacturing records indicated the following Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.44 per pound 95,000 pounds $22 per hour 48,000 labor hours Do not enter dollar signs or commas in the input boxes Round all answers to the nearest whole number Enter the variances as positive values. Calculate the following variances. al Direct materials…
Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categories—direct materials and direct manufacturing labor—and one indirect-cost pool, manufacturing overhead costs. It providesthe following information about manufacturing overhead costs for 2017.Budgeted manufacturing overhead costs $960,000Budgeted direct manufacturing labor-hours 32,000 hoursActual manufacturing overhead costs $992,000Actual direct manufacturing labor-hours 31,000 hoursThe following information is available as of December 31, 2017.AccountAccount Balance(Before Proration)Manufacturing Overhead in EachAccount Balance Allocated in theCurrent Year (Before Proration)Work-in-Process Control $ 40,000 $ 14,400Finished Goods Control 60,000 24,000Cost of Goods Sold 1,900,000 921,600$2,000,000 $960,000Calculate the underallocated or overallocated manufacturing overhead at the end of 2017and prorate it to Work-in-Process Control, Finished Goods Control, and Cost of…
Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of the year, it estimated total manufacturing overhead costs to be $1,040,000, total number of direct labor hours to be 4,500, and total number of machine hours to be 24,000 hours. What was the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A. $36.49 per direct labor hour B. $231.11 per machine hour C. $53.33 per direct labor hour D. $43.33 per machine hour
Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at sı,015,000, and they estimated total direct labor costs at $1,400,000. The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # W500. Data for the job are as follows: Direct materials cost $169.450 Direct labour cost $230,000 Direct labour hours 400 hours Special Design Cost Distribution quote from haulage company Units of product produced $12,300 $17,930 250 crates a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018. b) How much manufacturing overhead was allocated to Job #W500? c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is…
Rip Tide Company manufactures surfboards. Its standard cost information follows: Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($27,000 ÷ 250 units) Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost View transaction list Journal entry worksheet A Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest dollar amount. B Standard Quantity 13.5 square feet 9.8 hours 9.8 hours Record the entry for direct materials costs…
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: Budget Actual 7,600 hours 6,100 hours Direct labor hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $23,000 $23,000 Indirect materials $48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers solla $13,000 $70,000 $40,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $72,500 $42,000 Customer service hotline $19,000 $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements 1odel tba 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers usA acco
currently uses a normal cost system in which overhead costs are allocated to products P13-2 Missouri Company produces two products: Hardware X and Accessory Y. Missouri nased on direct labor hours. Missouri will be installing new cost accounting software by end of the current year and it is also considering to adopt the activity-based costing to charge overhead to products instead of using the firm-wide overhead rate that it currently uses. For the fiscal year 2016, Missouri forecasted to produce 5,000 units of Hardware X and 4,000 units of Accessory Y. The production of each hardware requires two direct labor hours and each accessory requires one-half hour. Below is the prime costs included in the each product: Hardware X Accessory Y Direct materials per unit P40 P16 Direct labor per unit P20 P4 Total estimated factory overhead for 2016 is shown below: Budgeted overhead Estimated Volume P 90,000 20 setups 140,000 4,000 Ibs. 190,000 500 boxes Machine setups Material handling Packaging…
JohnAssociates produces carburetors for small engines and uses a normal costing system. The following data are available for 2019. Budgeted: Overhead $ 4,500,000 Machine hours 187,500 Direct labor hours 600,000 Actual: Unit produced 750,000 Overhead $4,466,250 Prime cost $ 6,750,000 Machine hours 187,875 Direct labor hours 585,000 Overhead is applied based on direct labor hours. John Associates applies overhead to production based on machine hours instead of direct labor hours. 1) What is the predetermined overhead rate? 2) What is the applied overhead for 2019? 3) Is overhead overapplied or underapplied and by how much? 4) What is the unit cost? 5) How can John Associates decide whether to use direct labor hours or machine hours as the basis Please answer all five questions.. Much appreciated

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