PistonsValvesCamsBudgetedVolume(Units)Pistons6,00013,0001,000ValvesDirect LaborHours Per UnitCams.The estimated direct labor rate is $20 per direct laborhour. Beginning and ending inventories are negligibleand are, thus, assumed to be zero. The budgeted factoryoverhead for Isaac Engines is $235,200.0.300.500.10If required, round all per unit answers to thenearest cent.Direct LaborHours Per UnitdihdlhdihProduct Costsa. Determine the plantwide factory overhead rate.$per dlhb. Determine the factory overhead and direct labor costper unit for each product.Total Product CostsGross profit (loss)Gross profit percentage of salesPrice PerUnit$$402155Isaac Engines Inc.Product Line Budgeted Gross ProfitReports$$Factory OverheadCost Per Unit$$For the Year Ended December 31, 20Y2CamsPistons%c. Use the information provided to construct abudgeted gross profit report by product line for the yearended December 31, 20Y2. Include the gross profit as apercent of sales in the last line of your report, roundedto one decimal place.$Direct MaterialsPer Unit$Valves%$$9$520$Direct LaborCost Per Unit$%

Plant wide overhead rate is simple method of cost allocation. In this method a single rate is uses…

Pistons Valves Cams Budgeted Volume (Units) 6,000 13,000 1,000 Direct Labor Hours Per Unit Pistons Valves Cams 0.30 0.50 0.10 Price Per Unit Direct Labor Hours Per Unit dih dlh $40 dih 21 The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200. If required, round all per unit answers to the nearest cent. 55 a. Determine the plantwide factory overhead rate. $ per dlh b. Determine the factory overhead and direct labor cost per unit for each product. Direct Materials Per Unit $9 5 20 Factory Overhead Cost Per Unit Isaac Engines Inc. Product Line Budgeted Gross Profit Direct Labor Cost Per Unit c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place.

Pistons Valves Cams Budgeted Volume (Units) 6,000 13,000 1,000 Direct Labor Hours Per Unit Pistons Valves Cams 0.30 0.50 0.10 Price Per Unit Direct Labor Hours Per Unit dih dlh $40 dih 21 The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200. If required, round all per unit answers to the nearest cent. 55 a. Determine the plantwide factory overhead rate. $ per dlh b. Determine the factory overhead and direct labor cost per unit for each product. Direct Materials Per Unit $9 5 20 Factory Overhead Cost Per Unit Isaac Engines Inc. Product Line Budgeted Gross Profit Direct Labor Cost Per Unit c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place.

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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Roget Factory has budgeted factory overhead for the year at $5,035,800. It plans to produce 2,000,000 units of product. Budgeted direct labor hours are 327,000, and budgeted machine hours are 750,000. Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is a.$15.40 b.$7.70 c.$20.02 d.$73.92
Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Assembly Product design Budgeted Activity Usage 13,000 Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Electricity 1,000 10,500 420 Setups Setup Total Budgeted Cost $ 409,500 63,000 21,000 52,500 $ 546,000 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 220 direct labor hours and Job 42 used 500 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 Activity Usage Job 31 220 28 52 4 Job 42 500 34 62 6 Complete this question by entering your…
Yammy Company currently produces ultimate discs in an automated process. Expected production per month is 80,000 units. The required direct materials costs $0.20 per unit and labor costs $0.10 per unit. Manufacturing fixed overhead costs are $5,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget total product costs for 80,000 and 40,000 units, respectively?
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The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require 6 direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be? a.$15.00 b.$270.00 c.$45.00 d.$90.00
Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $17 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead $ 80,000 Fixed manufacturing overhead $ 260,000 Direct labor-hours 20,000 Management is considering a special order for 710 units of product O96S at $65 each. The normal selling price of product O96S is $76 and the unit product cost is determined as follows: Direct materials $ 38.00 Direct labor 17.00 Manufacturing overhead applied 17.00 Unit product cost $ 72.00 If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special…
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…