Question 2.2Paddle Place manufactures paddles and tables. In December, the two production departments hadbudgeted allocation bases of 3,100 machine-hours in Paddle and 6,900 direct manufacturing labor-hours in Table. The budgeted manufacturing overheads for the month were $51,200 and $56,900,respectively. For Project X, the actual costs incurred in the two departments were as follows:PaddleTableDirect materials purchased on account$80,000$177,500Direct materials used21,20012,200Direct manufacturing laborIndirect manufacturing laborIndirect materials usedLease on equipmentUtilities41,90053,5008,9009,0005,1004,75014,1003,7509901,250Project X incurred 900 machine-hours in Paddle and 200 manufacturing labor-hours in Table. Thecompany uses a budgeted overhead rate for applying overhead to production.Submission Instructions:1. Determine the budgeted manufacturing overhead rate for each department.2. Prepare the journal entries for Paddle department.3. What is the total cost of Project X?

Manufacturing overhead is an accounting term that refers to all indirect costs incurred during a…

Question 2.2 Paddle Place manufactures paddles and tables. In December, the two production departments had budgeted allocation bases of 3,100 machine-hours in Paddle and 6,900 direct manufacturing labor- hours in Table. The budgeted manufacturing overheads for the month were $51,200 and $56,900, respectively. For Project X, the actual costs incurred in the two departments were as follows: Paddle $80,000 Table Direct materials purchased on account Direct materials used Direct manufacturing labor Indirect manufacturing labor Indirect materials used Lease on equipment Utilities $177,500 12,200 21,200 41,900 53,500 8,900 9,000 5,100 14,100 4,750 3,750 990 1,250 Project X incurred 900 machine-hours in Paddle and 200 manufacturing labor-hours in Table. The company uses a budgeted overhead rate for applying overhead to production. Submission Instructions: 1. Determine the budgeted manufacturing overhead rate for each department. 2. Prepare the journal entries for Paddle department. 3. What is the total cost of Project X?

Question 2.2 Paddle Place manufactures paddles and tables. In December, the two production departments had budgeted allocation bases of 3,100 machine-hours in Paddle and 6,900 direct manufacturing labor- hours in Table. The budgeted manufacturing overheads for the month were $51,200 and $56,900, respectively. For Project X, the actual costs incurred in the two departments were as follows: Paddle $80,000 Table Direct materials purchased on account Direct materials used Direct manufacturing labor Indirect manufacturing labor Indirect materials used Lease on equipment Utilities $177,500 12,200 21,200 41,900 53,500 8,900 9,000 5,100 14,100 4,750 3,750 990 1,250 Project X incurred 900 machine-hours in Paddle and 200 manufacturing labor-hours in Table. The company uses a budgeted overhead rate for applying overhead to production. Submission Instructions: 1. Determine the budgeted manufacturing overhead rate for each department. 2. Prepare the journal entries for Paddle department. 3. What is the total cost of Project X?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 9: Anjan Paints manufactures two high-quality base paints: an oil-based paint and a lotex paint. Both are house paints and are manufactured in neutral white color only. After analyzing the company's entire operations, Anjan's accountants and production managers have identified activity cost pools and accumulated annual budgeted overhead costs by pool as follows. Activity Cost Pools Purchasing Processing Packaging Testing Storage and Inventory Control Washing and Cleaning equipment Total annual budgeted overhead Following further analysis, activity cost drivers were identified and their expected use by product and activity were scheduled as follows. Cost Drivers Activity Cost Pools Purchasing Purchase orders Gallons processed Processing Packaging Testing Containers filled Storage Washing Number of tests Average gallons on hand Number of batches Estimated Overhead $ 260,000 $1,500,000 $ 600,000 $ 250,000 $ 200,000 $ 590,000 $3,400,000 Expected Cost Drivers per Activity 1,500…
Question 3 MCC Company produces one product, Motorbikes. Because of wide fluctuations in the demand for Motorbikes, the assembly department has significant variations in its monthly production levels The annual master manufacturing overhead budget is based on 300,000 direct labour hours. In July, 27,500 labour hours were worked. The master manufacturing overhead budget for the year and the actual overhead costs incurred in July are as follows: Overhead Costs Master Budget (annual) Actual in July Variable Indirect labour 330,000 $29,000 Indirect materials 180,000 14,000 Utilities 150,000 13,900 Maintenance 90,000 8,350 Fixed Supervision 150,000 12,500 Depreciation 96,000 8,000 Insurance and taxes 60,000 5,000 Total $1,056,000 $90,750 Required: Prepare a monthly flexible overhead budget for the year…
Chapter 23 Mesa Bottle Company (MBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Two-Liter Bottles Cost Category Direct labor Direct materials $1.86 6.48 0.56 Factory overhead Total $8.90 At the beginning of July, MBC management planned to produce 600,000 bottles. The actual number of bottles produced for July was 645,000 bottles. The actual costs for July of the current year were as follows: Actual Cost for the Month Ended Cost Category July 31, 2019 Direct labor $12,143 Direct materials 40,915 Factory overhead Total 3,780 $56,838 a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for MBC, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances direct materials, direct labor, and factory overhead for July. c. Interpret the budget performance report.
single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortita chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity tndirect materials selling expenses Administrative expenses Total costs $31,360 78,400 7,840 35,400 25,000 18,000 $196,000 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: If required, round all per unit ansyers to the nearest cent. a. Determine the single plantwide factory overhead rate. x per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. Total Per Case
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
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $105,000. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 2,300 units 0.6 Clarinets 700 1.6 Oboes 1,000 1.0 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.$fill in the blank 1 per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. TotalFactory Overhead Cost Per UnitFactory Overhead Cost Flutes $fill in the blank 2 $fill in the blank 3 Clarinets fill in the blank 4 fill in the blank 5 Oboes fill in the blank 6 fill in the blank 7 Total…
#3 Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 6 pounds @ $9 per pound 2 DLH @ $17 per DLH 2 DLH @ $12 per DLH Total budgeted (standard) cost Actual Results (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June.
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,290,000, divided into two departments: Fabrication, $772,500, and Assembly, $517,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 7,500 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication direct labor hours Assembly direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication per dlh Assembly per dlh c. Determine the factory overhead allocated per unit for each product using the department factory…
Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $104,040. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Instruments BudgetedProductionVolume Direct LaborHours Per Unit Flutes 2,300 units 0.5 Clarinets 400 1.6 Oboes 1,000 1.1 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.fill in the blank 1 of 1$ per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, Instruments TotalFactory Overhead Cost Per UnitFactory Overhead Cost Flutes fill in the blank 1 of 7$ fill in the blank 2 of 7$ Clarinets fill in the blank 3 of 7 fill in the blank 4 of 7 Oboes fill in the blank 5…
2
Multiple Production Department Factory Overhead Rate Method costs were budgeted as follows: The direct labor estimated for each production department was as follows: Pattern Department 2,000 direct labor hours Cut and Sew Department, 2, 500 Total direct labor hours records as follows: If required, round all per unit answers to the nearest cent, a. Determine the two production department factory overhead rates. b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.
A2