General accounting question Parker Manufacturing's Maintenance Department services two productiondepartments: Molding and Finishing. Maintenance costs are allocatedbased on machine hours. The following data was recorded for the pastyear:Budgeted Machine Actual Machine Peak-Period MachineDepartmentMolding 30,000HoursHoursHours45,00060,000Finishing 90,000105,000120,000Total120,000150,000180,000Additional information:Budgeted Variable Maintenance Costs: $300,000⚫ Actual Variable Maintenance Costs: $412,500Question;How much of the $412,500 actual variable maintenance costs should not becharged to the production departments?

Given:Budgeted variable maintenance costs = $300,000Actual variable maintenance costs =…

Answered: Parker Manufacturing's Maintenance…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

See similar textbooks

Similar questions

A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
Please provide answer this general accounting and step by step calculation
Kindly help me with accounting questions
A company has identified the following overhead costs and cost drivers for the coming year. Overhead item Cost driver Budgeted Activity Budgeted Overhead Machine set – up Number of sets – up 200 P 20,000 Inspection Number of inspections 6,500 P130,000 Material handling Number of materials moves 8,000 P 80,000 Engineering Number of engineering hours 1,000 P 50,000 Total P 280,000 The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials P 5,000…
S Craftmore Machining reports the following budgeted overhead cost and related data for this year. Budgeted Activity Usage Budgeted Cost $ 555,750 85,500 28,500 Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) 13,000 1,500 11,400 570 71,250 Setups $ 741,000 Activity Assembly Product design Electricity Setup Total Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. 2. Job 31 used 320 direct labor hours and Job 42 used 680 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 Required 2 Activity Usage Job 31 Required 3 320 43 56 6 Complete this question by…
A manufacturer uses machine hours to assign overhead costs to products. Budgeted information for the next year follows. Budgeted factory overhead costs Budgeted machine hours Compute the plantwide overhead rate for the next year based on machine hours. Plantwide overhead rate $431,200 5,600 per MH
Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly $ 555,750 Direct labor hours (DLH) 13,000 Product design 85,500 Engineering hours (EH) 1,500 Electricity 28,500 Machine hours (MH) 11,400 Setup 71,250 Setups 570 Total $ 741,000 Required: Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. Job 31 used 320 direct labor hours and Job 42 used 680 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. Compute an activity rate for each activity using activity-based costing. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Activity Usage Job 31 Job 42 Direct labor hours (DLH) 320 680 Engineering hours (EH) 43 49 Machine hours (MH) 56 58 Setups6 8 Question #1 Compute a single plantwide overhead rate…
S Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Assembly Budgeted Cost $ 458,250 70,500 23,500 Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Product design Electricity Budgeted Activity Usage 13,000 1,410 10,000 470 58,750 Setups $ 611,000 Setup Total Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. 2. Job 31 used 280 direct labor hours and Job 42 used 560 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 Required 2 Activity Usage Job 31 280 33 60 3 Complete this question by entering your…
The cost formula for the maintenance department of Rainbow Ltd. is $19,400 per month plus $7.70 per machine hour used by the production department.Required:a. Calculate the maintenance cost that would be budgeted for a month in which 6,700 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,060 machine hours were actually used in the month of May and that the total maintenance cost incurred was $68,940. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Zoe Company reports the following for its overhead cost for the year. Activity Budgeted Cost Budgeted Activity Usage Engineering support $127,200 80 design changes Electricity 265,000 5,300 machine hours Setup 426,600 540 setups Compute the activity rate for engineering support using activity-based costing.
Correct status of manufacturing overhead at year end?

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS