North Company designs and manufactures machines that facilitate DNA sequencing. Depending on the intended purpose of each machine and its functions, each machine is likely to be unique. The job costing system in its Norfolk plant has five activity cost pools, addition to direct materials and direct labor. Job TPY–2306 requires 1,000 printed-circuit boards. The cost per board that passes the final inspection is $240. On average, only 50% of the completed units pass the final inspection. The prime costs per completed board include $24 for direct materials and $7 for direct labor. Required: Information pertaining to manufacturing overhead for printed-circuit boards follows: Fill in the missing amount. (Round your answers

North Company designs and manufactures machines that facilitate DNA sequencing. Depending on the intended purpose of each machine and its functions, each machine is likely to be unique. The job costing system in its Norfolk plant has five activity cost pools, addition to direct materials and direct labor. Job TPY–2306 requires 1,000 printed-circuit boards. The cost per board that passes the final inspection is $240. On average, only 50% of the completed units pass the final inspection. The prime costs per completed board include $24 for direct materials and $7 for direct labor. Required: Information pertaining to manufacturing overhead for printed-circuit boards follows: Fill in the missing amount. (Round your answers

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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Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Total estimated overhead costs are $332,860, of which $158,400 is assigned to the material handling cost pool and $174,460 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC. Required 1 Required 2 Standard Model Deluxe Model 30,400 870 520 Complete this question by entering your answers in the tabs below. Standard Model Deluxe Model 25,400 570 90 Calculate the overhead assigned to each product using the traditional cost system. (Round the…
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The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager’s salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $230,000. Each department’s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 108,000 $ 329,000 Actual department overhead 120,000 344,000 Expected total activity: Direct labor hours 44,000 10,000 Machine-hours 18,000 47,000 Actual activity:…
Waterway has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 19,900 RecRobos is as follows: Cost Direct materials ($45 per robot) $895,500 Direct labor ($31 per robot) 616,900 Variable overhead ($8 per robot) 159,200 Allocated fixed overhead ($23 per robot) 457,700 Total $2,129,300 Waterway is approached by Cinrich Inc., which offers to make RecRobo for $83 per unit or $1,651,700. Using incremental analysis, determine whether Waterway should accept this offer under this following independent assumption: (see attachement). In attachement: see dropdown options. Please don't forget to answer: should the offer be accepted or not.
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Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 49,000 direct labor hours. During March, the company worked on the following five jobs: Job BeginningBalance Direct Materialsadded duringMarch Direct Laboradded duringMarch Direct Labor Hoursadded duringMarch 134 $120,600 $6,000 $9,400 140 158 125,450 3,500 12,160 450 212 21,800 88,400 36,650 3,500 287 36,350 71,800 31,850 2,550 301 18,990 21,845 1,400 Total $304,200 $188,690 $111,905 8,040 Jobs 134 and 158 were started in January,…
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant manager’s salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $230,000. Each department’s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department A Department B Budgeted department overhead (excludes plantwide overhead) $ 108,000 $ 329,000 Actual department overhead 120,000 344,000 Expected total activity: Direct labor hours 44,000 10,000 Machine-hours 18,000 47,000 Actual activity:…
Nichols Inc. manufactures remote controls. Currently the company uses a plant- wide rate for allocating manufacturing overhead. The plant manager believes it is time to refine the method of cost allocation and has the accounting department identify the primary production activities and their cost drivers: Activities Material handling Assembly Inspection Cost driver Number of parts Labour hours Time at inspection station The current traditional cost method allocates overhead based on direct manufacturing abour hours using a rate of £200 per labour hour. a. b. Allocation Rate £2 per part £20 per hour £3 per minute What are the indirect manufacturing costs per remote control assuming an activity- based-costing method is used and a batch of 50 remote controls are produced? The batch requires 100 parts, 6 direct manufacturing labour hours, and 2.5 minutes of inspection time. £4.00 per remote control £6.55 per remote control £24.00 per remote control £327.50 per remote control C. d.
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