Required informationUse the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. Thecompany budgets overhead cost of $246,250 in the Molding department and $206,250 in the Trimming department. Thecompany budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actualproduction information follows.Number ofMolding DepartmentUnitsHours per UnitTotal HoursTrimming DepartmentHours per UnitTotal HoursPart ZPart XTotals3,0002.0 MH per unit4,0002.5 MH per unit6,000 MH10,000 MH16,000 MH3 DLH per unit9,000 DLH4 DLH per unit16,000 DLH25,000 DLHExercise 17-7 (Algo) Plantwide overhead rate LO P1Required:1. Compute the plantwide overhead rate using direct labor hours as the allocation base.2. Determine the overhead cost per unit for each part using the plantwide rate.Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the plantwide overhead rate using direct labor hours as the allocation base.=0< Required 1Required 2 >

1.)Budgeted overhead cost 452,500=18.1per direct labor hourBudgeted direct labor hours25,000 2.)…

Answered: Required information Use the following…

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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The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 20 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $2.75 per part Machining Machine hours $3.00 per machine hour Assembling Number of parts $1.50 per part Packaging Number of finished units $2.75 per finished unit What is the cost of assembling per chair?
The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments-Fabrication and Assembly. Data for the products and departments are listed below. Product Rings Dings Number of Units 1,150 1,740 $43.11 $52.42 $58.49 $7.49 Labor Hours Per Unit 4 Machine Hours Per Unit 8 11 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $86,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $65,500. The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the overhead cost per unit for Rings?
Jefferson, Incorporated, produces two products (Product 5 and Product Z) using two activities: Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of Machining is $148,500, while the cost of Inspection is $41,180. The products have the following activity demands: Product 5 Product Z 1,485 3,015 52 19 Total 4,500 71 What proportion of the Machining activity is used by Product 5? Machine hours Number of batches Multiple Choice O 67% 59% 33% 41%
XYZ Co.produces two different products (Product Y and Product Z) using two different activities : Machining , which uses machine hours as an activity driver , and Inspection , which uses number of batches as an activity driver . The cost of Machining is $ 500,000 , while the cost of Inspection is $30,000. Product Yuses 20% of total ?machine hours and 75 % of total batches . What is the total Machining cost assigned to Product Z a. $ 7,500 b. $ 375,000 c. None of the given answer is correct d. $ $400,000
Sd
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Rings 1,080 6 5 Dings 1,740 5 10 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $83,500. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $68,000. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Fabrication Department's factory overhead rate is a.$3.58 per direct labor hour b.$4.48 per machine hour c.$4.88 per direct labor hour d.$3.66 per machine hour
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 963 5 7 4 Dinks 1,983 4 8 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $81,600. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $107,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is O a. $59.37 Ob. $538.03 Oc. $74.20 Od. $14.50
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 972 4 4 Dinks 1,877 3 9 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $114,400. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $94,200. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blink is Oa. S10.75 Оb. 565.74 Oc. S87.64 Od. $376.85
Temple Lights, Inc. produces Hanukkah menorahs in its Cutting and Molding departments. The Maintenance and Security departments support the production of the menorahs. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Department Production departments' total costs Feedback Security Department 2,000 Machine hours 800 Asset value $1,390 $2,000 $37,440 Department cost $16,640 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. Cutting Department 7,200 $2,500 $64,000 Cutting Molding Department Department X Molding Department 10,800 $5.500 $81,000 Check My Work The reciprocal services method considers all inter-support-department service, and thus is the most accurate of the three support…
Haresh
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Blinks 984 2 7 Dinks 2,096 8 7 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $107,300. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $85,100. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is
Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $2,200 5 40 600 Security Department 4,500 3 0 500 Cutting Department 21,200 21 3,600 2,400 Sewing Department 24,900 19 5,400 3,000 Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. Line Item Description CuttingDepartment SewingDepartment…

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