Pope Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs for the next two quarters are given below:| | First Qtr | Second Qtr ||--------------------|-------------|-------------|| Direct materials | $288,000 | $140,000 || Direct labor | $160,000 | $80,000 || Manufacturing overhead | $240,000 | $220,000 || Total manufacturing costs | $688,000 | $440,000 |- **Number of units to be produced**: - First Qtr: 160,000 - Second Qtr: 80,000- **Estimated unit product cost**: - First Qtr: $4.30 - Second Qtr: $5.50Based on the information given, estimate the fixed manufacturing overhead cost per quarter.Options:A. $648,000B. $192,000C. $200,000D. $220,000E. None of the above

Solution: Variable manufacturing overhead per unit = (Manufacturing overhead at 160000 units -…

Answered: Pope Company makes a single product…

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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Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor - hours. Data for the two products for the upcoming year follow: Mercon Wurcon Direct materials cost per unit $ 12.00 $ 9.00 Direct labor cost per unit $ 15.00 $ 17.00 Direct labor - hours per unit 0.50 3.25 Number of units produced 2,000 4,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $560,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity - based costing system in which half of the overhead would continue to be allocated on the basis of direct labor - hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Mercon Wurcon…
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A-2
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