Production workers for Zachary Manufacturing Company provided 330 hours of labor in January and 570 hours in February. Zacharyexpects to use 4,000 hours of labor during the year. The rental fee for the manufacturing facility is $13,000 per month.RequiredBased on this information, how much of the rental cost should be allocated to the products made in January and to those made inFebruary?Note: Do not round intermediate calculations.Month Allocated Cost$11JanuaryFebruary

Predetermined Overhead Rate:— It is the rate used to allocate manufacturing overhead cost to cost…

Answered: Production workers for Zachary…

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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Bernard Company shows the following manufacturing costs for the first six months of the year: Production in Units Total Costs 1,350 $38,636 1,200 $36,000 1,520 $40,436 2,150 2,590 2,600 January February March April May June Using the high-low method, the total fixed costs are A. $14,900 B. $50,900 C. $23,236 D. $27,664 $48,636 $50,780 $50,900 (Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.)
The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $52,866 1,860 Units May 55,160 2,600 Units June 58,818 3,780 Units (a) Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit (b) Using the high-low method, determine total fixed costs.
Ashvin
Denger
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $156,800 $195,200 $217,600 Insurance expense** 1,000 1,000 1,000 Depreciation expense 2,000 2,000 2,000 Property tax expense*** 500 500 500 *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month.**Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a.$120,600 b.$123,100 c.$121,100 d.$122,600
Sagar
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Cost per Machine- Hour $ 4.25 Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 36,800 $ 1,400 $ 16,700 $ 12,700 For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects to work 5,000 machine-hours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Budgeted machine-hours Direct materials Direct labor Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.05 $ $ 36,000 16,000 1,500 1,650 16,700 1,200 73,050
Zachary Company's cost and production data for two recent months included the following: Production (units) Rent Utilities March 900 $1,200 $ 800 April 1,100 $1,200 $ 978 Required a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. b. Identify which cost is variable and which is fixed.
Tractor Company needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Machine Hours 1,990 2,100 1,750 1,600 1,870 2,020 Using the high-low method, unit variable overhead cost is calculated to be: Month January February March April May June Multiple Choice O O O $2.08 $1.78 $1.98 $1.68 Total Overhead $ 6,320 $1.88 6,580 6,020 5,590 6,060 6,370
Jason Inc. provides the following manufacturing costs for the first four months of the year. Manufacturing Costs for the First Four Months Months Production in Units Total Costs January 2,500 $33,750 February 1,800 $29,900 March 3,000 $36,500 April 2,600 $34,300 Using the high-low method, determine the total fixed costs. (Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.) Group of answer choices $15,500 $20,000 $30,300 $16,500
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $156,300 $192,700 $213,400 Insurance expense*: 970 970 970 Depreciation expense 1,820 1,820 1,820 Property tax expense*** 540 540 540 Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $970 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a. $120,135 b. $117,225 c. $138,218 d. $156,300
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 20,900 Cost per Repair-Hour. $ 15.00 $ 7.78 $8.35 $ 1.80 Wages and salaries. Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours In May, but actually worked 2,400 repair-hours. The company expects its sales to be $45.00 per repair-hour. Revenue Expenses: $ 2,760 $ 5,790 $ 4,640 $ 3,850 Required: Compute the company's activity variances for May. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating…

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