Required:1. Should EcoScape use process costing or job-order costing?Process costing2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours,What is the overhead rate? Round your answer to the nearest cent.7.5 per direct labor hourWhat is the average actual wage rate?per direct labor hourWhat is the cost of an installation that takes $3,500 of direct materials and 20 direct labor hours? Characteristics of Production Process, Cost MeasurementVince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businessesthroughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScapeestimated the following for the year:Number of direct labor hours6,720Direct labor cost$67,200Overhead cost$50,400During the year, the following actual amounts were experienced:Number of direct labor hours6,045Direct labor incurred$66,495Overhead incurred$50,500Required:1. Should EcoScape use process costing or job-order costing?Process costing2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours,What is the overhead rate? Round your answer to the nearest cent.7.5 per direct labor hour

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Required: 1. Should EcoScape use process costing or job-order costing? Process costing 2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours, What is the overhead rate? Round your answer to the nearest cent. 7.5 per direct labor hour What is the average actual wage rate? per direct labor hour What is the cost of an installation that takes $3,500 of direct materials and 20 direct labor hours?

Required: 1. Should EcoScape use process costing or job-order costing? Process costing 2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours, What is the overhead rate? Round your answer to the nearest cent. 7.5 per direct labor hour What is the average actual wage rate? per direct labor hour What is the cost of an installation that takes $3,500 of direct materials and 20 direct labor hours?

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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Thank you for the help, I have two follow up questions regarding this, -First question is 3. Calculation of cost per equivalent units in ( converstion) beginning Work in the process should it be 654,800 instead of 327,400 becuase converstion costs = direct labor + overhead and in this case it would be 327,400 + 100% * 327,400 = 654,800? and Cost incurred during the period for conversation cost = Direct labor cost + overhead cost = 7,207,400 + (100% * 7,207,400) = 14,414,800? -Second question is 5. Calculation of Cost of units Completed and Transferred out (Finished Goods) for December 31, 20x1, should it we use Equivalent Units (A) 1,134,000 units instead of 2,700,000 becuase we are preparing a schedule of December 31?
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products: Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Overhead costs: Setup costs Inspection costs Machining Maintenance Total Model A 10,000 $153,000 144,000 17,000 30 900 9,000 $216,000 220,000 172,000 300,000 $908,000 Product Data Model B 100,000 $1,530,000 310,000 204,000 60 1,300 91,000
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Jackson Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. (Click the icon to view the costs.) Requirements 1. 2. 3. Compute Jackson's predetermined overhead allocation rate. Prepare the journal entry to allocate manufacturing overhead. Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. Is manufacturing overhead underallocated or overallocated? By how much? 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease Cost of Goods Sold? Print Allocated overhead to WIP Done - X Data table At the beginning of 2024, the company expected to incur the following: Manufacturing overhead costs Direct labor costs $880,000 1,540,000 Machine hours 80,000 hours At the end of 2024, the company had actually incurred: Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant…
Helpful Division of X Company makes two products, Small and Large. The company has always used Conventional Costing (for financial reporting purposes), but this period wants to try using Activity-Based Costing to make better decisions. Information related to the current period is as follows: REQUIRED: (#1) Since the company has three activities, what are the three overhead application rates the company would use for activity-based costing? (ROUND EACH RATE TO THE NEAREST CENT and be sure to label the rates appropriately.) (#2) Using activity-based costing, what was the cost to manufacture one Small unit? (#3) Using activity-based costing, what was the cost to manufacture one Large unit? (#4) Based on what you learned about activity-based costing this week, how might Helpful Division managers use the new cost information from its activity-based costing system to better manage its operations? Helpful Resource: https://www.youtube.com/watch?v=PU3U_aMbKws
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The following standard costs pertain to a component part manufactured by Ashby Company:Direct materials$2Direct labour5Manufacturing overhead 20 Standard cost per unit $27The company can purchase the part from an outside supplier for $25 per unit. The manufacturing overhead is 60% fixed and this fixed portion would not be affected by this decision. Assume that direct labour is an avoidable cost in this decision. What is the relevant amount of the standard cost per unit to be considered in a decision of whether to make the part internally or buy it from the external supplier?
s === Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost. Required: Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) Note: Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values. Direct materials used Direct labor Manufacturing overhead applied Total current manufacturing costs Beginning work in process inventory Ending work in process inventory Cost of goods manufactured Beginning finished goods inventory Ending finished goods inventory Cost of goods sold 89 SEP 17 84 < Prev Case 1 16,000 12,000 8,100 5,900 3,800 7,900 6 of 8 tv Case 2 ‒‒‒ ‒‒‒ ▬▬▬…
Question: Use the high-low method to determine the estimating cost function with machine-hours as the cost If July's estimated machine-hours are 4,500, calculate the total estimated operating costs of the Machining Department using the cost function in (a)? Max has used least squares regression analysis to obtain the following output:
1. Calculate the overhead rate based on the traditional overhead allocation method using direct labour hours as the base. 2. Calculate the total overhead applied to order no. 147 using the traditional overhead rate calculated in question 3.1 above. 3. Using activity based costing (ABC), calculate the overhead rate for the following activity: Purchasing. That is, what is the overhead rate per purchase order?