Parsons Company is planning to produce 2, 100 units of product in 2017. Each unit requires 2.20 pounds of materials at $6.20 per poundand a half-hour of labor at $12.00 per hour. The overhead rate is 40% of direct labor.(a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead.(b) Compute the standard cost of one unit of product.

The question requires the determination of the total direct materials, direct labor and overhead…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Parsons Company is planning to produce 2,100 units of product in 2017. Each unit requires 2.20 pounds of materials at $6.20 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 40 % of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. (b) Compute the standard cost of one unit of product.
Arsons company is planning to produce 2,100 units of product in 2017. Each unit requires 1.60 pounds of materials at $6.40 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 60% of direct labor. Required A. Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. B. Compute the standard cost of one unit of production (round answer to 2 decimal places).
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Parsons Company is planning to produce 1,900 units of product in 2020. Each unit requires 2.20 pounds of materials at $6.80 per pound and a half-hour of labor at $14.00 per hour. The overhead rate is 40% of direct labor. (a) Compute the budgeted amounts for 2020 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor Overhead (b) Standard cost $ Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) $ $
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Sanjana Company makes watches. For 2017, the company expected fixed overhead costs of $648,000. Sanjana uses direct labor-hours to allocate fixed overhead and anticipates 21,600 hours during the year for an expected output of 540,000 units. An equal number of units are budgeted for each month. During October, 48,000 watches were produced and $52,000 was spent on fixed overhead. Calculate the following: a. the fixed overhead rate for 2017; b. the fixed overhead spending variance for October; and c. the production-volume variance for October.
Shalom Company prepared its 2023 manufacturing overhead budget to produce Product Peace. Variable overhead costs per direct labor hour are Indirect materials, P3; Indirect labor, P15; Maintenance, P2. Fixed costs totaled P68,000 composed of Supervisor's salaries, P36,000; Depreciation, P20,000; Maintenance, P12,000. Producing each unit requires 2 direct labor hours. Shalom Company estimates that units to be produced for each quarter are 3,000, 3,600, 4,000, and 6,000, respectively. Amounts must be in whole numbers. Example: 88,000 or (88,000) How much is the total manufacturing overhead budget? Cash payments in quarter 3
Sheffield, Inc. is planning to produce 2,560 units of product in 2022. Each unit requires 3 pounds of materials at $6 per pound and a half hour of labor at $16 per hour. The overhead rate is 75% of direct labor. (a) Your answer has been saved. See score details after the due date. Compute the budgeted amounts for 2022 for direct materials to be used, direct labor, and applied overhead. Direct Materials $ (b) Direct Labor Overhead Standard Cost Save for Later $ $ $ 46080 Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 52.75.) 20480 15360 Attempts: 1 of 1 used Attempts: 0 of 1 used Submit Answer

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