Peach, Inc., has identified the following overhead costs and cost drivers for next year:Overhead ItemSetup costs..Ordering costsMaintenance costs.PowerExpected Cost$ 90,00050,000150,00030,000The following are two of the jobs completed during the year.Job 700Direct materials.Direct labourUnits completed.Direct labour hoursNumber of setupsNumber of orders.Machine hours.Kilowatt hours.The company's practical activity is 5,000 direct labour hours.$1,200$900250402Cost DriverNumber of setupsNumber of orders..Machine hours.Kilowatt hours.105060Job 701$600$40010020144025Expected ActualTransactions4004,00025,00075,000Instructions:1. Determine the unit cost for each job using direct labour hours to apply overhead. Roundanswers to two decimal places.

Name: Peach, Inc., has identified the following overhead costs and cost dri
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Description: Peach, Inc., has identified the following overhead costs and cost drivers for next year:Overhead ItemSetup costs..Ordering costsMaintenance costs.PowerExpected Cost$ 90,00050,000150,00030,000The following are two of the jobs completed during the yea

Lets understand the basics. Overhead can be allocated using either of, (1) Traditional costing (2)…

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Overhead Item Setup costs. Ordering costs. Maintenance costs. Power Expected Cost $ 90,000 50,000 150,000 30,000 Direct materials.. Direct labour. Units completed. Direct labour hours Number of setups Number of orders. Machine hours The following are two of the jobs completed during the year. Job 700 $1,200 $900 250 40 2 Cost Driver Number of setups Number of orders. Machine hours. Kilowatt hours. 10 50 Job 701 $600 $400 100 20 1 4 40 Actual Transactions 400 4,000 25,000 75,000

Overhead Item Setup costs. Ordering costs. Maintenance costs. Power Expected Cost $ 90,000 50,000 150,000 30,000 Direct materials.. Direct labour. Units completed. Direct labour hours Number of setups Number of orders. Machine hours The following are two of the jobs completed during the year. Job 700 $1,200 $900 250 40 2 Cost Driver Number of setups Number of orders. Machine hours. Kilowatt hours. 10 50 Job 701 $600 $400 100 20 1 4 40 Actual Transactions 400 4,000 25,000 75,000

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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The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Standard price Standard Quantity per unit Direct materials $4.50 per pound 5.70 pounds $ 25.65 Direct labor $11.87 per hour 2.00 hours $ 23.74 Overhead $2.20 per hour 2.00 hours $ 4.40 $ 53.79 The company produced 3,000 units that required: 17,600 pounds of material purchased at $4.35 per pound • 5,910 hours of labor at an hourly rate of $12.17 per hour • Actual overhead in the period was $13,540 Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the ne Budget Performance Report Variance Manufacturing Costs: Actual Standard (Favorable)/ 3,000 units Costs Costs Unfavorable Direct materials $76,560 Direct labor 71,220 Overhead 13,540 $655
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The expected total overhead cost when 120,000 machine hours was used is:
rker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year lows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($619,080 + 938,000 units) rker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used. Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,000,000 12,800,000 $ 15,360,000 336,000 $ 4,200,000 $ 1,700,000 $ 393,000 equired: alculate Parker Plastic's direct materials price and quantity variances. Standard Price (Rate) $ 1.30 $13.50 $ 1.30 per square foot per hour per hour Standard Uni Cost $11.70 4.05 0.39 0.66
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Job 53 at BV Fabrications required $200 of direct materials and 10 direct labour hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labour hours were 20,000. What would be recorded as the cost of Job 53 assuming the company uses a normal costing system and DLH as cost driver? 1.$200 2.$350 3.$380 4.$730
E3 B] Witham tendered successfully for the supply of coal to the Great Northern over a period on one year. In his tender, Witham undertook to supply such quantities as Great Northern may order from time to time. Assume that the tender was on Feb 15, the winner was announced on March 15 and the obligations pursuant to the tender began on April 1. Suppose that on June 1, Witham informed Great Northern of intent to opt out and 13 days later Great Northern received the registered letter to that effect.. Suppose that Great Northern placed the following orders on Witham on the following dates: If in the tender the opt out notice period is stipulated as two weeks from date of the receipt by the tender awarder as evidenced by return receipt: [1] On what date will obligations of the tender awardee cease pursuant to the opt out? ____ (date) [ILO A1] [2] How many tons will the tender awardee be obligated to supply the tender awarder? ____________ (number) [ILO B2] [3] Assume that the tender…
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