Locke Data Processing reported expenses of $5 million for labor, of which $3 million was for dataanalysis and $2 million was for data entry. Locke recorded 30,000 hours of data analysis and 100,000hours of data entry. What are the activity-based rates for each type of direct labor?

Locke Data Processing reported expenses of $5 million for labor, of which $3 million was for dataanalysis and $2 million was for data entry. Locke recorded 30,000 hours of data analysis and 100,000hours of data entry. What are the activity-based rates for each type of direct labor?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Locke Data Processing reported expenses of $5,000,000 for indirect labor, of which $3,000,000 was for data analysis, and $2,000,000 was for data entry. Locke recorded 30,000 hours of data analysis and 100,000 hours of data entry. What are the activity-based rates for each area of direct labor?
The centralized computer technology department of Lee Company has expenses of$264,000. The department has provided a total of 2,500 hours of service for the period. TheRetail Division has used 1,125 hours of computer technology service during the period, andthe Commercial Division has used 1,375 hours of computer technology service. How mucheach division should be charged for computer technology department services?
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. How much should each division he charged for computer technology department services?
At the beginning of the year, managers at King Industries estimated $420,000 in manufacturing overhead, 20,000 direct labor hours and 50,000 machine hours. Actual manufacturing costs at the end of the year were $425,000 in manufacturing overhead. During the year 22,000 direct labor hours and 47,000 machine hours were incurred. If overhead is applied based on direct labor hours, what is the predetermined overhead rate for the coming year?
Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Standard Service Maintenance Dept. Personnel Dept. Production Depts. A B Hours used - 400 480 320 Number of Employees 20 - 80 240 What is the cost of the Maintenance Department allocated to Department B using the direct method? What is the cost of the…
The accounting records of Younkin Corporation revealed the following selected costs: Sales commissions, $61,000; plant supervision, $215,000. and administrative expenses, $184,000. What is Younkin’s period costs total?
Dagger Corporation has the following activities: creating bills of materials (BOM), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tooling. The general ledger accounts reveal the following expenditures for manufacturing engineering: Salaries ₱150,000.00 Equipment ₱ 80,000.00 Supplies ₱ 20,000.00 The equipment is used for two activities: improving processes and designing tooling. Thirty-five percent of the equipment’s time is used for improving processes and sixty-five percent is used for designing tools. The salaries are for two engineers. One is paid P100,000, while the other earns P50,000. The P100,000 engineer spends 40% of his time training employees in new processes and 60% of his time on improving processes. The remaining engineer spends equal time on all activities. Supplies are consumed in the following proportions: Creating BOMs 25% Studying capabilities 10% Improving processes 20% Training…
Clark Company expected to incur $11,600 in manufacturing overhead costs and use 4,000 machine hours for the year. Actual manufacturing overhead was $9,500 and the company used 4,150machine hours. 9. Calculate the predetermined overhead allocation rate using machine hours as the allocation base. 10. How much manufacturing overhead was allocated during the year?
Manufacturing overhead was estimated to be $355,300 for the year along with 20,900 direct labor hours. Actual manufacturing overhead was $375,000, and actual labor hours were 22,500. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?
Erkkila Inc. reports that at an activity level of 6,100 machine-hours in a month, its total variable inspection cost is $425,480 and its total fixed inspection cost is $166,656. What would be the total variable inspection cost at an activity level of 6,400 machine-hours in a month? Assume that this level of activity is within the relevant range.