Question A1 The following budgeted information relates to two departments in AB Ltd for the next financial control period: Machine Department Production Overhead Direct Mat. Cost Lab. Cost Direct Lab. Hours Direct Hours 55,000 122,000 131,000 80,000 15,000 150,000 2,000 20,000 50,000 10,000 Required: Using the most appropriate base in each instance identify the production overhead absorption rate for: (a) (i) (ii) Department A Department B Outline clearly two advantages of using predetermined overhead absorption rates. (b)

Question A1 The following budgeted information relates to two departments in AB Ltd for the next financial control period: Machine Department Production Overhead Direct Mat. Cost Lab. Cost Direct Lab. Hours Direct Hours 55,000 122,000 131,000 80,000 15,000 150,000 2,000 20,000 50,000 10,000 Required: Using the most appropriate base in each instance identify the production overhead absorption rate for: (a) (i) (ii) Department A Department B Outline clearly two advantages of using predetermined overhead absorption rates. (b)

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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Question Content Area Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity rate for the production cost pool is a.$176.47 per machine hour b.$150.00…
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consider the following summary interim cost reports of a project, say in week 10. Assume that A, B, C and D are the only work packages in the project. Activity Total Budgeted cost for the activity Budgeted cost of work scheduled (PV) % Complete Actual Cost EV CV SV A $1,000 $1,000 100 $1,100 B $1,000 $700 50 $900 C $1000 $0 0 $0 D $1,000 $500 60 $400 (Hint: One of the columns gives you PV directly. There is no need to separately calculate it.) a) Calculate the EV, CV and SV for each activity . What is your assessment of the progress of each activity? Calculate the EV, CV, SV, CPI and SPI for the project, and the critical ratio (CR). What is your assessment of the entire project so far based on these calculations? b) There are several formulae available for calculation of the Estimated (remaining cost) to completion (ETC). Once you have ETC, you can calculate…
Question Content Area Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,000 $180,000 Inspections 24,000 $120,000 Assembly (dlh) 80,000 $400,000
QUESTION 2 The following data have been provided by Mathews Corporation: Budgeted production 6.900 units Standard machine-hours per unit 9.4 machine-hours Standard lubricants rate $1.20 per machine-hour Standard supplies rate $1.00 per machine-hour Actual production 7,000 units Actual machine-hours (total) 66.230 machine-hours Actual lubricants cost (total) $78.100 Actual supplies cost (total) $66.536 Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to: $306 U $736 U $430 U $736 F
P9-1. Job Cost Sheet For A Service Business LO1 Bailey and Tepe, attorneys-at-law, provided legal representation to Goode Equipment Inc. in a product liability suit. Twenty partner hours and 65 associate hours were worked in defending the company. The cost of each partner hour is $325, which includes partner wages plus overhead, based on direct labor cost. The cost of each associate hour is $145, which also includes wages and overhead. Other costs that can be directly identified with the job are travel ($2,800) and telephone/fax/copying charges ($1,740). The date Goode contracted with Bailey and Tepe was May 8, 2016, and the defense was successfully completed on December 21, 2016. The engagement number is 525. REQUIRED: Prepare a job order cost sheet, in good form, for Goode Equipment Inc. P9-2. Cost Performance Report and Budgeted Profit and Actual Profit for a Service Business LO1 The budget for the Goode Equipment Inc. job in P9-1 consisted of the following amounts: Partners' salary…
Xuereb Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 35 skeins of wool at a cost of $6 per skein and 0.8 gallons of dye at a cost of $10 per gallon. All other materials are indirect. At the beginning of the year Xuereb has an inventory of 466,000 skeins of wool at a cost of $1,165,000 and 4,400 gallons of dye at a cost of $27,280. Target ending inventory of wool and dye is zero. Xuereb uses the FIFO inventory cost flow method. A (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xuereb budgets 50 direct manufacturing labor-hours to weave a rug at a budgeted rate of $17 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process. E (Click the icon to view the budgeted overhead costs.) Read the requirements. Requirement 1. Prepare a direct material usage budget in both units and dollars. More Info Begin with the physical units portion, then…
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Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments GeneralFactory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 Number of receiving orders 300 — 1,680 1,020 Direct labor hours — — 25,000 40,000 Required: 1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: General Factory Receiving Assembly Finishing Square footage Number of receiving orders Allocations: General Factory Receiving Assembly Finishing Direct overhead cost $ $ $ $ General Factory Receiving Total $ $ $ $ 2. Using direct labor…
please help me with all 3 parts, Direct Method, Stepdown Method, and Reciprocal Method Class Examples for Cost Allocation for Multiple Support Departments Example 2 Budgeted Data: Support Departments Facility Service Personnel $100,000 $60,000 6,000 8,000 5 VC or VMOH base: sq ft base: employees 25 Operating Depts Mixing $130,000 12,000 10 Canning $170,000 10,000 20 Assume that the budgeted number of square footage and budgeted number of employees equal the actual for each, respectively. The cost driver for the Facility Service department is square footage and the cost driver for the personnel department is the number of employees 1) Allocate the two support department costs to the two operating departments using a. Direct Method b. Stepdown Method c. Reciprocal Method