Precision Manufacturing has a total factory overhead budgeted at $750,000 for the upcoming fiscal year. The company produces two types of window coverings: blackout drapes and sheer panels. Each product requires 6 direct labor hours to manufacture. Management has projected a production of 10,000 units for each product type. Determine the factory overhead allocated per unit for blackout drapes using the single plantwide factory overhead rate.
Q: Decker Processing Inc. placed 230,000 gallons of direct materials into the refining process. At the…
A: Explanation of Equivalent Units :Equivalent units represent the conversion of partially completed…
Q: Solve this
A: Provided Data:Beginning WIP Inventory = 25,000 units (100% complete for materials)Units started…
Q: Starbucks Corporation wants to make a profit of $32,000. It has variable costs of $65 per unit and…
A: Calculating Selling Price per UnitLet's break it down step by step:Step 1: Calculate Total…
Q: Can you demonstrate the accurate method for solving this general accounting question?
A: Step 1: Definition of Inventory Cost under FOB Shipping PointWhen goods are purchased under FOB…
Q: Please provide the answer to this financial accounting question using the right approach.
A: Step 1: Define Contribution Margin RatioThe Contribution Margin Ratio is a financial metric that…
Q: I need assistance with this financial accounting problem using appropriate calculation techniques.
A: Step 1: Definition of Maturity ValueMaturity Value is the total amount that will be paid to the…
Q: Do fast answer of this general accounting question
A: Step 1: Introduction to loanLoan refers to the amount borrowed by a business from another business…
Q: Please provide the answer to this financial accounting question with proper steps.
A: Concept of Cash Conversion Cycle (CCC):The Cash Conversion Cycle (CCC) is a financial metric that…
Q: Financial accounting
A: Formula:Amount = Principal * (1 + Rate)^Number of Yearsso;Amount = 10,000∗(1+0.06) 6…
Q: Can you explain the correct approach to solve this general accounting question?
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a profitability ratio that…
Q: Windsor tools inc. gad the following data for the period just ended.
A: Provided Data:Cash Sales = $45,000Credit Sales = $312,000Sales Discounts = $18,000Sales Returns…
Q: KL Manufacturing produces a single component for sale. The component sells for $25 per unit. Fixed…
A: Explanation of Variable Cost per Unit:Variable cost per unit refers to the cost that changes…
Q: I am looking for the most effective method for solving this financial accounting problem.
A: Definition of Net IncomeNet income is the amount of profit a company retains after deducting all its…
Q: What is the primary purpose of a trial balance? A) To determine net income or lossB) To check if the…
A: The correct answer is:C) To ensure that total debits equal total creditsA trial balance is prepared…
Q: Can you demonstrate the proper approach for solving this financial accounting question with valid…
A: Provided Data:Current annual sales:Class X spas = 410 unitsClass Z spas = 480 unitsLuxury model spas…
Q: Explanation: Which of the following is NOT considered a current asset? A) Accounts receivableB)…
A: The correct answer is:D) Property, plant, and equipment.This is not a current asset. It is a…
Q: I need help solving this general accounting question with the proper methodology.
A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the residual interest in…
Q: Please provide the accurate answer to this general accounting problem using valid techniques.
A: Step 1: Define Fixed Overhead VarianceThe fixed overhead variance measures the difference between…
Q: Please help me solve this general accounting question using the right accounting principles.
A: Step 1: Definition of Depreciation ExpenseDepreciation expense refers to the allocation of the cost…
Q: I need help solving this general accounting question with the proper methodology.
A: Step 1: Definition of Adjusted Cost of Goods Sold (COGS)Adjusted Cost of Goods Sold represents the…
Q: I need financial accounting question answer
A: Step 1: Define Debt to Equity RatioThe Debt to Equity Ratio measures a company's financial leverage…
Q: Could you help me solve this financial accounting question using appropriate calculation techniques?
A: Concept of Accounting Equation:The accounting equation is the foundation of double-entry accounting…
Q: General accounting
A: Step 1: Definition of Accounting EquationThe Accounting Equation is a fundamental principle in…
Q: On October 1, 2024, Redmayne Corp. reported Retained Earnings of $567,000. During the month,…
A: Explanation of Retained Earnings: Retained earnings represent the cumulative net income a company…
Q: Isabella Traders reported owner’s equity of $84,000 at the beginning of the year and $143,000 at the…
A: Step 1: Definitions Concept of Owner's Equity:Owner's equity represents the residual interest of the…
Q: Compute the cost that should be allocated to the warehouse
A: 1: Total Acquisition CostAdventure Outfitters pays $420,000 for the assets and also incurs $8,500 in…
Q: Donovan Manufacturing has an overhead application rate of 145% and allocates overhead based on…
A: Explanation of Overhead Application Rate:The overhead application rate is a predetermined percentage…
Q: A company uses the weighted-average method for inventory costing. At the end of the period, 19,500…
A: Concept of Work in Process (WIP) Inventory:Work in Process (WIP) inventory refers to goods that are…
Q: Can you help me solve this general accounting problem using the correct accounting process?
A: Step 1: Define Over- or Underapplied Overhead Over- or underapplied overhead occurs when the applied…
Q: What is the amount ans nature of the gain or loss from the sale ?
A: Provided Data:Original purchase cost of equipment = $20,000Depreciation claimed = $12,000Asset's…
Q: Calculate Harington's cost of goods sold for 2013.
A: Step 1: Definitions Concept of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) refers to the…
Q: Can you provide a detailed solution to this financial accounting problem using proper principles?
A: Step 1: Define Revenue and Variable ExpensesRevenue is the total income generated from selling…
Q: Need answer
A: Problem 1:Cost Formula: $19,500 + ($7.25 × machine hours)Machine hours = 5,800Budgeted Maintenance…
Q: Predetermined overhead rate must have been?
A: Explanation of Manufacturing Overhead: Manufacturing overhead encompasses all indirect costs…
Q: Please explain this financial accounting problem with accurate financial standards.
A: Step 1: Definition of Gross Profit PercentageGross Profit Percentage (or Gross Margin Ratio) is a…
Q: How much must it charge per unit if 5,000 units are sold?
A: Definition of Fixed Costs:Fixed costs are business expenses that do not change with the level of…
Q: What is Lavigne's standard variable manufacturing overhead allocation rate?
A: Definition of Variable Manufacturing Overhead:Variable manufacturing overhead consists of indirect…
Q: Please provide the correct solution to this financial accounting question using valid principles.
A: Step 1: Definition of Gross ProfitGross profit represents the difference between a company's net…
Q: Calculate the ending accounts receivable balance
A: Step 1: Introduction to accounts receivableAccounts receivable refers to the customers who have…
Q: Kingsley Manufacturing has $21,500 of ending finished goods inventory as of December 31, 2024. If…
A: Provided Data:Beginning Finished Goods Inventory = $18,200Ending Finished Goods Inventory =…
Q: Donovan Manufacturing has an overhead application rate of 145% and allocates overhead based on…
A: Explanation of Overhead Application Rate: The overhead application rate is a predetermined…
Q: Please help me
A: To calculate the overhead cost allocated to each unit of Product Y, we can use the predetermined…
Q: Please see an attachment for details general accounting question what is the standard overhead rate…
A: Step 1: Definition of InterestInterest is the cost of borrowing money, typically expressed as a…
Q: Can you explain the correct methodology to solve this general accounting problem?
A: To calculate the outstanding checks on Meadowbrook Inc.'s May bank reconciliation, follow these…
Q: Grantwell Corp. had the following information at December 31:
A: Concept of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured refers to the total…
Q: The following data is available for Ivanhoe Corporation at December 31, 2025: Common stock, par $10…
A: To calculate the number of issued shares, we need to divide the total value of common stock by the…
Q: i need Financial question anwer do fast
A: To calculate the current price of Apple Inc. stock, we can use the following formula derived from…
Q: What amount should Parker report for intangible assets on the 12/31/10 balance sheet?
A: To calculate the total amount of intangible assets Parker Enterprises should report on the 12/31/10…
Q: Can you help me solve this general accounting question using the correct accounting procedures?
A: Step 1: Define Cash Paid for WagesCash paid for wages represents the actual amount of money that a…
Q: I Want Answer
A: Concept of Variable Manufacturing Overhead:Variable manufacturing overhead refers to production…
Precision Manufacturing has a total factory
Step by step
Solved in 2 steps
- Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston has budgeted the following amounts for various overhead categories in the coming year. In the coming year, Johnston expects to powder coat 120,000 units. Each unit takes 1.3 direct labor hours. Johnston has found that supplies and gas (used to run the drying ovensall units pass through the drying ovens after powder coat paint is applied) tend to vary with the number of units produced. All other overhead categories are considered to be fixed. (Round all overhead rates to the nearest cent.) Required: 1. Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the total fixed overhead for the coming year. 2. Prepare an overhead budget for Johnston for the coming year. Show the total variable overhead, total fixed overhead, and total overhead. Calculate the fixed overhead rate and the total overhead rate (rounded to the nearest cent). 3. What if Johnston had expected to make 118,000 units next year? Assume that the variable overhead per unit does not change and the total fixed overhead amounts do not change. Calculate the new budgeted direct labor hours and prepare a new overhead budget. Calculate the fixed overhead rate and the total overhead rate (rounded to the nearest cent).Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.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.)Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
- Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory overhead is allocated to the three products on the basis of processing hours. The Products had the following production budget and processing hours per case: a. Determine the single plantwide factory overhead rate. b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is 2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: a. Determine the single plant wide overhead rate. b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar.
