Phoenix Electronics manufactures a standard smartphone as a contract manufacturer. The company provides the following production details for April: Production and Cost Parameters Overhead Application Rate: $39 per direct labor hour Direct Labor Rate: $14 per hour Materials Cost: $110,000 Direct Labor Hours Worked: 2,300 hours Total Units Produced: 18,000 smartphones Actual Overhead Spending: $90,700 Objectives Calculate the total cost of production Determine the cost per unit Analyze overhead application variance

Phoenix Electronics manufactures a standard smartphone as a contract manufacturer. The company provides the following production details for April: Production and Cost Parameters Overhead Application Rate: $39 per direct labor hour Direct Labor Rate: $14 per hour Materials Cost: $110,000 Direct Labor Hours Worked: 2,300 hours Total Units Produced: 18,000 smartphones Actual Overhead Spending: $90,700 Objectives Calculate the total cost of production Determine the cost per unit Analyze overhead application variance

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,300 9,300 11,300 12,300 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $83,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 1…
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