Overhead cost Direct labor hours Machine hours Fabricating $ 560,000 52,000 DLH 70,000 MH Assembly $ 60,000 10,000 DLH 63,500 MH Laval reports the following for one of its products, a desk lamp. Desk lamp Number of Units 3,000 Required: Fabricating Department Assembly Department Unit Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Unit per Unit per Unit 1 DLH per unit 5 DLH per unit 2 MH per unit 0.5 MH per unit 1. Determine the plantwide overhead rate using 62,000 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Y Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Department Fabricating Assembly Total Departmental Overhead Rate Hours per Unit Overhead Cost per Unit $ 0 < Required 3 Required 4

Overhead cost Direct labor hours Machine hours Fabricating $ 560,000 52,000 DLH 70,000 MH Assembly $ 60,000 10,000 DLH 63,500 MH Laval reports the following for one of its products, a desk lamp. Desk lamp Number of Units 3,000 Required: Fabricating Department Assembly Department Unit Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Unit per Unit per Unit 1 DLH per unit 5 DLH per unit 2 MH per unit 0.5 MH per unit 1. Determine the plantwide overhead rate using 62,000 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Y Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Department Fabricating Assembly Total Departmental Overhead Rate Hours per Unit Overhead Cost per Unit $ 0 < Required 3 Required 4

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 16E: Job order cost accounting for a service company The Fly Company provides advertising services for...

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Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Job order cost accounting for a service company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 65% of media purchases. On August 1, the four advertising projects had the following accumulated costs: During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. Journalize the summary entry to record each of the following for the month: A. Direct labor costs B. Media purchases C. Overhead applied D. Completion of Vault Bank and Take Off Airlines campaigns
Production and cost data Production and sales units Selling price (per unit) Materials (per unit) Labor (per unit) Manufacturing overheads Dept. A Standrad 192000 24000 $15 1.7 4.3 Dept. B Designer wear Number of machine set-ups 4 Marketing overheads $50 8 14.2 24 Engineering and PC Marketing and CS 745200 1296000 Use single-rate; direct method to allocate engineering and marketing overheads Engineering overheads include machine setting ($460,800) and inspection ($284,400) activities. Marketing involves channel ($496,000) and branding ($800,000) activities. The inspection and channel costs are driven by the number of units produced & sold. Computing product costs and profits under conventional and ABC approaches
Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Required: Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours LAPELLEu Overhead Cost $ 311,500 $ 8,840 $ 71,280 $ 63,700 $ 148,000 Expected Activity 44,500 DLHS 221 orders 99 part types 1,820 boards 14,800 MHs 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Product A Product B Product C Product D 6,800 51 27,300 29 4,600 49 5,800 92 34 17 33 15 500 2,100 770 6,300 550 0 2,400 4,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the…
Overhead assigned to KL37?
< overhead and direct labor hours. Painting Dept. Finishing Dept. Totals ring moving to a multiple department rate system for allocating overhead. The Direct Overhead Labor Hours (dlh) Product A $241,200 83,700 $324,900 10,800 dlh 10,100 20,900 dlh 7 dlh 3 10 dlh Product B 11 dlh 7 18 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.55 O b. $279.90 Oc. $155.50 O d. $156.33
eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $fill in the blank 1 $fill in the blank 2 Total overhead (traditional) fill in the blank 3 fill in the blank 4 Difference $fill in the blank 5 $fill in the blank 6
Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $160,000 $320,000 $114,500 $96,000 Normal activity: Number of employees ― 75 35 65 Square footage 1,600 ― 3,750 11,250 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of 85,000 machine hours. The Assembly Department…
gagenown/ilm/takeAssignment/takeAssignmentMain.do?invoker=&ta... A Q eBook Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $24 per machine hour $13 per direct labor hour $50 per setup $28 per inspection $14 per production order $11 per purchase order The activity-base usage quantities and units produced for each product were as follows: Elliptical Machines Treadmill 1,687 419 53 Activity Base Machine hours Direct labor hours Setups Elliptical Machines Treadmill 4 Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: C 101 Print Item % 15 5 732 $ Inspections Production orders Purchase orders 198 Units produced 286 Use the activity rate…
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services SQU Libraries SQU Portal Attendance English (en O b. OMR605 O c. OMR545 O d. OMR635 O e. OMR575 XYZ Company provided the following information regarding Product XY: Direct material costs OMR3 per unit of product; Direct labor costs OMR5 per direct labor hour; Predetermined overhead rate OMR10 per direct labor hour. The cost of a job for 550 units of product XY, which uses a total of 100 direct labor hours, is: Select one: Oa. OMR5,400 Ob. OMR3,300 Oc. OMR3,150 Od. None of the answers given e. OMR9,900 Total manutacturing costs assioned inclucted 10 units heom ofs tota mana