Records at Hal's Accounting Services show the following costs for year 1. Direct materials and supplies Employee conta Total overhead 40,000 2,900,000 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billeble hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2. Complete this question by entering your answers in the tabs below. Required A Required B Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? Cost Item Year 2 Cost Direct materials and supplies Direct labor Variable overhead Fixed overhead Total costs

Records at Hal's Accounting Services show the following costs for year 1. Direct materials and supplies Employee conta Total overhead 40,000 2,900,000 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billeble hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2. Complete this question by entering your answers in the tabs below. Required A Required B Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? Cost Item Year 2 Cost Direct materials and supplies Direct labor Variable overhead Fixed overhead Total costs

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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Assume the following: • The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The variable overhead efficiency variance is $1,500 F. • The company produced 15,000 units of finished goods during the period. What is the actual quantity of direct labor-hours worked during the period? Multiple Choice о о O O 44,000 hours 44,500 hours 43,500 hours 43,000 hours
The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600,000 and will require 25,000 direct labor hours at an estimated cost of P2,500,000. The machine will run about 320,000 hours. What is the predetermined factory overhead rate based on direct labor hours? * 100.00% O P7.8125 O P100.00 O 156.25% O P25.00
Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is a.$48 per machine hour b.$45 per machine hour c.$50 per machine hour d.$62 per machine hour
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A company uses activity-based costing to calculate the unit cost of its products. The figures for Period 3 are as follows: Production set-up costs: £84,000. Total production is 40,000 units of each of products A and B, and each run is 2,000 units of A or 5,000 units of B. What is the set-up cost per unit of B? A. £0.10 B. £0.08 C. £0.60 D. £0.29
K Company estimates that overhead costs for the next year will be $4,000,000 for indirect labor and $970,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 140,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? Multiple Choice $0.03 per direct labor hour. O $0.14 per direct labor hour. $6.93 per direct labor hour. O $28.57 per direct labor hour. O $35.50 per direct labor hour.
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows. January February March April Estimated production in units 6,000 7,000 3,000 4,000 Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Allocate overhead costs to each month using the overhead rate computed in Requirement a. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Estimated overhead to be $ 500000 , Direct labor hours are 50000 , Machine hours are to be 25000 , overhead applied based on Direct labor What is the predtermined overhead rate?
The following costs were incurred in March: Direct materials = PhP1,050,000 Direct Labor = PhP850,000 Manufacturing overhead = PhP3,350,000 Selling expenses = PhP800,000 Administrative expenses = PhP750,000 What is the conversion costs during the month? Show the solution.
The total prime cost of a product was OMR6,500. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR4,500. Assuming that direct labor hours were 600 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR18,500 O b. OMR11,000 O c. OMR43,500 O d. OMR16,500 O e. OMR39,000
2. During the month, 1,200 units of Product LTK were produced. Actual direct labor hour required was 600 direct labor hours at an actual cost of P6,060. According to the standard cost card for the product, 0.6 of labor hour should be required for each unit of the product produced. Standard cost is P10 per labor hour. The standards were based on production level of 1,100 units. Compute the following (show your solution): a. Budgeted labor hours b. Budgeted labor cost c. Actual labor rate d. Standard labor hours e. Standard labor cost f. Total labor cost variance g. Rate variance h. Efficiency variance
The controller of Ivanhoe Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,041 3,456 4,147 5,184 3,686 5,633 Total Machine Hours 4,032 Variable cost per machine hour $ 4,608 6,912 9,101 5,760 9,216 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)