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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Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total Required: Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: G-09 19,900 $ 7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,980 $19 $ 107,460 53, 730 42,984 $ 204,174 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at…
Required information Skip to question Greenwood Company manufactures two products-15, 000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor - hours. It is considering implementing an activity - based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine - hours $ 213,400 11,000 MHs Machine setups Number of setups $ 61,600 140 setups Production design Number of products $ 78,000 2 products General factory Direct labor-hours $244,000 10,000 DLHS Activity Measure Product Y Product Z Machining 7,400 3,600 Number of setups 60 80 Number of products 1 1 Direct labor-hours 7,400 2,600 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?…
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Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 31,000 desk lamps produced annually follows. Direct materials $255.000 Direct labor Fabricating department (6,000 DLH x $32 per DLH) Assembly department (15,400 DLH x $20 per DLH) $192,000 $308,000 Machine hours Fabricating department Assembly department 14,400 MH 20,900 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours. Fabricating 140,000 DLH 172,000 MH Assembly 330,000 DLH 129,000 MH $435,000 Overhead cost $330,000 Required 1. Determine the plantwide overhead rate for Laval using direct labor hours as a base. 2. Determine the total manufacturing cost per unit for the aluminum desk lamp using the plamwide overhead rate. 3. Compute departmental overhead rates based on…
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