Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Basic Deluxe Fabrication Assembly Setup 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20

Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Basic Deluxe Fabrication Assembly Setup 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity are as follows: Fabrication Assembly Setup Basic 2,000 dlh 8,000 dlh 5 setups Deluxe 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year.What is the activity-based factory overhead per unit for the Deluxe kayak? a.$41.80 b.$158.20 c.$100.00 d.$154.54
Chimwendo manufactures three components, A, A and T using the same machine for each. The budget for the next year calls for the production and assembly of 4 00 of each component. The variable cost per unit of the final product is as follows: Machine hours Variable cost ($) 1 Unit of S 3 20 1 Unit of A 2 36 1 Unit of T 4 24 Assembly 20 100 Only 24 000 hours of machine time will be available during the year and a sub-contractor has quoted the following unit prices for supplying components. S = $29 A = $40 T= $34 Required 2/4 11/29/21, 12:07 PM • Calculate which components Chimwendo should manufacture and which should be supplied by the sub- contractor and the total cost components in that choice • Advise the management of Chimwendo of your decision.
a product cell for wallace company has budgeted conversion costs of $420,000 for the year. the cell is planned to be available 2,100 hours for production. each unit requires $12.50 of materials cost. the cell started and completed 700 units. the cell process time for the product is 15 minutes per unit. what is the cost(s) to be debited to finished goods for the period?
Condoleezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condoleezza Co, expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are: Assembly $310,000 Finishing 240,000 Total $550,000 The machine hours expected to be used in the coming year are as follows: Assembly Finishing Department Department Product A 15,100 9,000 Product B 4,900 11,000 Total 20,000 20,000 Round your answers to two decimal places, if necessary. a. Compute the plantwide factory overhead rate, assuming the single plantwide factory overhead rate method is used. per mh b. Compute the production department factory overhead rates, assuming the multiple production department factory overhead rate method is used. Assembly Dept. per mh Finishing Dept. per mh
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget for the expected level of direct labor hours for the coming year.
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: Question Content Area 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc.Overhead BudgetFor the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours blank Maintenance $fill in the blank ddf6cc027003019_1 $fill in the blank ddf6cc027003019_2 blank Power fill in the blank ddf6cc027003019_3 fill in the blank ddf6cc027003019_4 blank Indirect labor fill in the blank ddf6cc027003019_5 fill in the blank…
Stupji Ltd uses activity based costing. The budgeted distribution costs for the next year are: Transport costs $2,631 Order processing $1,573 -------- Total distribution costs $4,204 It is estimated that in the next year, 325,000 orders will be processed, and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each of which will require a journey of 122 km for each order will be placed next year. To the nearest $, what is the distribution cost for this customer? a. $47,342 b. $38,891 c. $30,299 d. $1,785
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.40 Total $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.70 Total $10.85 At the start of 2021, Scotch Brand planned to produce 20,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $18,000 and the variable overhead costs are budgeted at $1.80 per case. The following information summarizes the results for 2021: Actual production, 21,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc. Overhead Budget For the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours Maintenance $ $ Power Indirect labor Total variable cost $ Fixed costs: Maintenance $ Indirect labor Rent Total fixed costs $ Total overhead costs $ 2. Prepare an overhead budget that reflects…