mithfield Industries had the following production costs during the previous fiscal year: ndirect factory wages $72,000 Direct labor 357,000 Production supervisors' salaries 218,000 Accounting office salaries 182,000 Depreciation on factory equipment 34,000 Utilities expense in factory 13,000 Advertising 40,000 Direct materials for production 158,000 Property taxes on the factory 23,000 98,000 Sales manager's salary What is the total cost that would be reported on the factory overhead cost budget? Oa. $458,000 b. $337,000 Oc. $875,000 Od. $360,000

mithfield Industries had the following production costs during the previous fiscal year: ndirect factory wages $72,000 Direct labor 357,000 Production supervisors' salaries 218,000 Accounting office salaries 182,000 Depreciation on factory equipment 34,000 Utilities expense in factory 13,000 Advertising 40,000 Direct materials for production 158,000 Property taxes on the factory 23,000 98,000 Sales manager's salary What is the total cost that would be reported on the factory overhead cost budget? Oa. $458,000 b. $337,000 Oc. $875,000 Od. $360,000

Name: Smithfield Industries had the following production costs during the p
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Smithfield Industries had the following production costs during the previous fiscal year:Indirect factory wages$72,000Direct labor357,000Production supervisors' salaries218,000Accounting office salaries182,000Depreciation on factory equipment34,000U

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: I. ABC company had the following expenses in June. $ 130,000 65,000 12,000 Direct labor Factory…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: uring its first year of operations, Silverman Company paid $10,385 for direct materials and $11,400…

A: The income statement tells about the profitability of the business for the current period. The net…

Q: Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate…

A: The high-low method is used to separate the fixed and variable costs from the mixed costs of…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 30,140 units and sold…

A: Contribution Margin - When we deduct variable cost of the product from the net sales , then the…

Q: During its first year of operations, Silverman Company paid $16,360 for direct materials and $10,300…

A: The cost of goods sold is the total of all the costs incurred to produce a product or service. It…

Q: Fast Feet Inc. makes running shoes and they are anticipating the incurrence of the following…

A: Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…

Q: During its first year of operations, Connor Company paid $26,310 for direct materials and $18,100 in…

A: Production cost includes all expenses paid for production it means these cost are directly related…

Q: Dilia Company incurred manufacturing overhead cost for the year as follows. $ 50/unit $ 35/unit…

A: The income statement is one of the important financial statements of the business. It records the…

Q: One division of Heartwood Cabinets anticipates the following costs for the next year: Cost Budget…

A: Part 2: Explanation:Step 1: Calculate budgeted variable overhead for the year by multiplying the…

Q: he following information for the past year for the Magic Corporation has been provided: Fixed costs:…

A: Contribution margin refers to a gross or per unit basis. it shows that the incremental money is…

Q: None

A: Step 1: Introduction to the Applied Overhead CostThe applied manufacturing overhead cost during the…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 33,110 units and sold…

A: Cost of ending Inventory deferred under absorption costing=Fixed manufacturing overhead per…

Q: Please give answer

A: Step 1 : Determine the unit cost: Perticular AmountDirect material cost$12,385Direct labor…

Q: ndirect labor 24,000 Utilities 20,000 Maintenance 12,000 Fixed Costs Supervisor’s salary…

A: Budgeted Actual Difference { F / U } Variable Costs Indirect materials $40,000 $37,200…

Q: During its first year of operations, Silverman Company paid $14,000 for direct materials and $…

A: Net operating income:Net operating income refers to the net difference between the revenue generated…

Q: During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs,…

A: Predetermined overhead rates are used for allocating the indirect overhead cost. It can be allocated…

Q: Better Products Company manufactures insulation and applies manufacturing overhead costs to…

A: Manufacturing Overhead costs are Indirect manufacturing expenses that are incurred in relation to…

Q: During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs,…

A: Direct labor hours: It refers to the total number of labour hours required to produce the product

Q: Provide solution of the question

A: Step 1: Introduction to the Applied Overhead CostThe applied manufacturing overhead cost during the…

Q: want the answer of this question

A: Step 1: Define Gross Profit:Gross profit is the excess of sales revenue above the cost of goods…

Q: A review of Plunkett Corporation's accounting records for last year disclosed the following selected…

A: Product Costs include all the cost borne to get the product ready for the market. These include…

Q: accounting records for Portland Products report the following manufacturing costs for the past year.…

A: Answer : 1. Volume level 136000 units : Particular Total cost Direct material $374,400…

Concept explainers

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.

Topic Video

Question

Smithfield Industries had the following production costs during the previous fiscal year:
Indirect factory wages
$72,000
Direct labor
357,000
Production supervisors' salaries
218,000
Accounting office salaries
182,000
Depreciation on factory equipment
34,000
Utilities expense in factory
13,000
Advertising
40,000
Direct materials for production
158,000
Property taxes on the factory
23,000
98,000
Sales manager's salary
What is the total cost that would be reported on the factory overhead cost budget?
a. $458,000
b. $337,000
c. $875,000
d. $360,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explaining budget

VIEW

Step 2: Calculating factory overhead budget

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 14 Direct labor $ 8 Variable manufacturing overhead $ 2 Variable selling and administrative $2 Fixed costs per year: Fixed manufacturing overhead $ 250,000 Fixed selling and administrative $ 160,000 During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $47 per unit. Required: Assume the company uses absorption costing: Compute the unit product cost. Prepare an income statement for the year. Assume the company uses variable costing: Compute the unit product cost. Prepare an income statement for the year.
Wachowski Company reported the following cost data for the year 2017. Factory maintenance costs $90,000 Direct labor, wages 352,000 Direct labor, health insurance 32,000 Indirect labor, health insurance 16,000 Health insurance for production supervisor 6,500 Administrative costs 54,000 Rental of office space for administrative staff 18,500 Sales commissions 52,000 Direct material 1,220,000 Indirect materials 633,000 Advertising expense 39,000 Depreciation on factory building 62,000 Indirect labor, wages 70,000 Production supervisor's salary 33,000 Use the above cost data to complete the table below. Total prime costs $4 Total manufacturing overhead costs $ Total product costs Total period costs
Wachowski Company reported the following cost data for the year 2017. Factory maintenance costs $90,000 Direct labor, wages 352,000 Direct labor, health insurance 32,000 Indirect labor, health insurance 16,000 Health insurance for production supervisor 6,500 Administrative costs 54,000 Rental of office space for administrative staff 18,500 Sales commissions 52,000 Direct material 1,220,000 Indirect materials 633,000 Advertising expense 39,000 Depreciation on factory building 62,000 Indirect labor, wages 70,000 Production supervisor's salary 33,000 Use the above cost data to complete the table below. Total prime costs Total manufacturing overhead costs $ Total product costs $ Total period costs
Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Direct Labor Hours 61,000 Total Factory Overhead Cost 16,625,000 14,000,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 61000 hour level of activity as follows: Indirect Materials (Variable) Rent (Fixed) Maintenance (Mixed) 1,998,000 Total Factory overheads Cost 14,000,000 To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements 90,000 5,002,000 7,000,000 Required: 1. Estimate how much of the $16,625,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To do this, it…
The the third quarter records of Clemmie Corporation indicate that they incurred the following costs in that period: Direct Labor: $99,300 Factory Utilities: $47,100 Factory Property Taxes: $32,400 Direct Materials: $90,600 Administrative Expenses: $38,300 Selling Expenses: $37,200 The total of the product costs is:
Selected data for Lemon Grass Company for 2015 is provided below: Factory Utilities $ 1,500 Indirect Materials Used 37,500 Direct Materials Used 300,000 Property Taxes on Factory Building 6,900 Sales Commissions 85,000 Indirect Labor Incurred 25,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6,500 What is the total factory overhead? A) $450,000 B) $612,000 C) $77,400 D) $62,400
During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data: Direct material (16,000 lb.) $70,000 Direct labor (@ $20/hr.) $20,000 Factory administration $15,000 Indirect labor $10,000 Indirect material $14,000 Non factory administrative expenses $16,000 Other manufacturing overhead $15,000 Maintenance of factory machine $20,000 Sales commissions $70,000 Direct labor hours 2,000 Machine hours 8,000 Calculate the predetermined manufacturing overhead rate for the coming year using direct labor hour as the allocation base. Round your answer to two decimal places when applicable.
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 250,000 Office manager's salary 150,000 Wages of factory machine operators 110,000 Depreciation on manufacturing equipment 50,000 Insurance and taxes on selling and administrative offices 30,000 Direct materials purchased and used 170,000 Based on the above information, the amount of period costs shown on Steuben's income statement is: Multiple Choice $150,000. $180,000. $430,000. S 30,000.
DJV Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31. Instructions Compute cost of goods manufactured. Compute cost of goods sold.
Pearl Company reported the following actual cost data for the year: Purchase of raw materials (all $300,000 direct) Direct labour cost 200,000 Manufacturing overhead costs 269,000 Change in inventories: Decrease in raw materials $12,000 Decrease in work in process 10,000 Decrease in finished goods 20,000 Pearl Company used a 150% predetermined overhead rate based on direct labour cost. The rate was based on annual estimated overhead cost and direct labour cost of $252,000 and $168,000 respectively. Required: 1. Calculate the cost of goods manufactured. 2. What was the cost of goods sold before adjusting for any under or overapplied overhead? 3. By how much was manufacturing overhead cost under or overapplied? 4. Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.
The following information for the past year for the Blaine Corporation has been provided: Fixed costs: Manufacturing $130,000 Marketing 18,000 Administrative 21,000 Variable costs: Manufacturing $113,000 Marketing 35,000 Administrative 38,000 During the year, the company produced and sold 60,000units of product at a selling price of $19.19 per unit. There was no beginning inventory of product at the beginning of the year. What is the contribution margin for the year?
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold 21,800 units. Production costs for the year were as follows: Direct materials $ 222,384 Direct labor $ 124,752 Variable manufacturing overhead $ 208,824 Fixed manufacturing overhead $ 461,040 Sales totaled $915,600 for the year, variable selling and administrative expenses totaled $128,620, and fixed selling and administrative expenses totaled $197,976. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: (Round your intermediate calculations to 2 decimal places.)