Problem 3 plant-wide overhead rate is used based on direct labor hours as cost allocation base. manufacturing overhead is $520,000. The followings are some relevant information for Peter Company: Product A Product B $20 $18 2 hours 20.000 units 40,000 hours 50.000 hours $10 Direct material cost per unit (Actual) Direct labor cost per unit (Actual) Actual Direct labor hours to produce 1 unit Budgeted number of units produced Total Budgeted direct labor hours Total Actual direct labor hours $15 hours 12,000 units 60,000 hours 55,000 hours rquired: (Put your answers in the empty spaces provided after each question) mat are the advantage of using the Nomal costing approach to compute the total cost of the duct rather than to use Actual costing approach?

Problem 3 plant-wide overhead rate is used based on direct labor hours as cost allocation base. manufacturing overhead is $520,000. The followings are some relevant information for Peter Company: Product A Product B $20 $18 2 hours 20.000 units 40,000 hours 50.000 hours $10 Direct material cost per unit (Actual) Direct labor cost per unit (Actual) Actual Direct labor hours to produce 1 unit Budgeted number of units produced Total Budgeted direct labor hours Total Actual direct labor hours $15 hours 12,000 units 60,000 hours 55,000 hours rquired: (Put your answers in the empty spaces provided after each question) mat are the advantage of using the Nomal costing approach to compute the total cost of the duct rather than to use Actual costing approach?

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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Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 1,037 3 7 Dinks 2,059 6 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $111,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $88,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate if it is based on machine hours instead of labor hours, is a.$23.41 per machine hour b.$12.72 per machine hour c.$8.14 per machine hour d.S10.18 per machine hour
Equivalent Units of Production and Related Costs The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Work in Process-Assembly Department Bal., 8,000 units, 65% completed 31,880 To Finished Goods, 184,000 units ? Direct materials, 188,000 units @ $2.10 394,800 Direct labor 404,400 Factory overhead 157,320 Bal., ? units, 20% completed ? Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs WholeUnits Equivalent UnitsDirect Materials Equivalent UnitsConversion Inventory in process, beginning…
STEP DOWN METHOD Furnishing manufacturing company total overheads allocated and apportioned to the production and service departments as follows: Assembly $55,000 Finishing 34,000 Maintenance 32,000 Canteen 15,600 A suitable basis for sharing out the maintenance costs is the time spent servicing equipment. The amount of time spent by the maintenance department servicing equipment in the Assembly and Finishing department has been analyses as follows: Assembly 60% Finishing 40% The Canteen department’s overheads are to be reapportioned on the basis of the number of employees in the other three departments. Number of employees: Assembly 20, finishing 35, Maintenance 15, Canteen 5. You are required to: reapportion the overhead expenses to the production from the service department.
Question Content Area Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120, 000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is a. $600, 000 b. $488,000 c. $400, 000 d. $300,000
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Answer question D
Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 22,360 $36,120 Manufacturing overhead applied 2,970 1,030 4,000 Job P Job Q $ 13,760 $ 12,900 1,380 1,500 2,880 Job Q Molding 4,300 $ 17,200 $ 1.40 Fabrication 2,580 $25,800 $ 43,000 6,880 $ 2.20 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. Total 11. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not…
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