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

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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
Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours $ 64.20 $ 17.60 Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) 1.4 DLHS 19,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost $50.40 $ 12.40 1 DLHs 69,000 units $1,854,640 95,600 DLHs Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional…
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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
Direct materials = $10 per unitDirect labor = $5 per unitVariable manufacturing overhead = $2 per unitFixed manufacturing overhead = $1,000Units produced is 1,000 units What is the cost per unit using the absorption method? What is the cost per unit using the variable method?
If the cost of goods available for sale equals $116,029, calculate the cost of goods sold using the table below. Cost per unit Number of units on hand Total cost $860 8 $1760 10 $945 8 6 32 $480 Ending inventory The cost of goods sold is S $6,880 $17,600 $7,560 $2,880 $34,920 ***
S Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Cost $ 19,250 $ 1,820 $ 6,320 $ 960 $ 68,600 Total Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity 1,375 DLHS Expected Activity Product A Product B Product C Product D 300 650 125 300 20 65 180 190 Purchase orders (orders) Product testing (tests) 65 0 80 Template etching (templates) 250 0 26 10 4 General factory (MHs) 3,800 2,000 1,200 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. 455 orders 395 tests 40 templates S 9,800 MHs