QUESTION 10 Lawn and Order Company manufactures industrial sprinklers and uses an activity-based costing system to allocate overhead to its products. Each sprinkler consists of 6 separate parts totaling $3 in direct materials, $2 in direct labor and requires 1 hour of machine time to produce. Additional information follows Overhead Cost Pools Pre-determined Overhead Rate Materials handling Number of parts $0.40 per part Machining Machine hours $1.50 per machine hour Assembling Inspecting Number of parts $0.40 per part Number of finished units $0.30 per finished unit Determine the amount of overhead allocated to each sprinkler. Round your answer to 2 decimal places

QUESTION 10 Lawn and Order Company manufactures industrial sprinklers and uses an activity-based costing system to allocate overhead to its products. Each sprinkler consists of 6 separate parts totaling $3 in direct materials, $2 in direct labor and requires 1 hour of machine time to produce. Additional information follows Overhead Cost Pools Pre-determined Overhead Rate Materials handling Number of parts $0.40 per part Machining Machine hours $1.50 per machine hour Assembling Inspecting Number of parts $0.40 per part Number of finished units $0.30 per finished unit Determine the amount of overhead allocated to each sprinkler. Round your answer to 2 decimal places

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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Q. 2 Índigo manufacturing has five activity cost pools and two products ( a budget tape vacuum and a deluxe tape vacuum). Information is presented below:
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- Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Required information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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: Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity rate Saved Product Y Product Z 8,800 3,200 240 40 1 1 8,800 3,200 5. What is the activity rate for the Product Design activity cost pool? per product Save
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Requlred Information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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 Estimated Overhead Cost $ 242,400 $114,400 86,000 $ 302,400 Expected Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours 12,000 MHs 220 setups 2 products 12,000 DLHS Activity Measure Machining, Number of setups Number of products Direct labor-hours Product Y 8,200 40 1. 8,200 Product Z 3,800 180 1. 3,800 Required: 1. What is the company's plantwide overhead rate? (Round your enswer to 2 declmal places.) Predetermined overhead rate, per DLH of 15 甜…
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Transcribed Image Text:A furniture-making business manufactures quality furniture to customers orders. It has three production departments (A, B and C) which have overhead absorption rates (per direct labour hour) of $12.86, $12.40 and $14.03 respectively. Two pieces of furniture are to be manufactured for customers. Direct costs are as follows. Job MNO Direct material Direct labour Job XYZ $154 20 hours dept A 12 hours dept B 10 hours dept C $108 16 hours dept A 10 hours dept B 14 hours dept C Labour rates are as follows: $3.80(A): $3.50 (B); $3.40 (C) Calculate the total cost of cach job the selling price if there is a markup of 25%
Predetermined Factory Overhead Rate Road Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses The average shop direct labor rate is $22 per hour. $1,054,900 770,000 39,700 110,400 20,000 15,400 21,100 90,700 11,600 $2,133,800 Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. per direct labor hour