Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:Factory depreciationIndirect laborFactory electricityIndirect materialsSelling expensesAdministrative expensesTotal costsFactory 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:Budgeted VolumeProcessing Hours(Cases)Per CaseTortilla chipsPotato chipsPretzels4,5005,4005,40015,300Tortilla chipsPotato chips$28,28070,0867,99216,60039,34722,132$184,437Pretzels0.15TotalIf required, round all per-case answers to the nearest cent.a. Determine the single plantwide factory overhead rate.$per processing hourFactory Overhead0.10b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles.Total0.12Per-CaseFactory Overhead

Factory overhead is the indirect cost incurred by factory for the production of goods. Indirect cost…

Answered: Scrumptious Snacks Inc. manufactures…

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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XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3,880,000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 5 Labor hours per unit 2 2 What is pool rate for the material-insertion activity?
Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided in the table below. Manufacturing Activities and Associated Information Overhead activities Overhead costs assigned ($) Number of cost driver Material handling 120,000 240,000 Parts Devising 400,000 50,000 Machine hours (MH) Assembling 168,000 240,000 Parts Finishing 120,000 2,000 Finishing hours (FH) Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. What would be the overhead rate for finishing activities? (Round your answer to two decimal points) Group of answer choices $8.00 per FH $0.70 per FH $60.00 per FH $0.50 per FH
CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:ActivityActivity RateFabrication$22 per machine hour (mh)Assembly$12 per direct labor hour (dlh)Setup$40 per setupInspecting$18 per inspectionProduction scheduling$8 per production orderPurchasing$5 per purchase orderThe activity-base usage quantities and units produced for each product were as follows:Stationary BicycleTreadmillMachine hours1,6801,070 Direct labor hours243131 Setups4520 Inspections15894 Production orders6032 Purchase orders24098 Units produced500350Use the activity rate and usage information to compute the total activity costs and the activity costs per unit for each product. If required, round your answers to two decimal places.
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,153,500, divided into four activities: fabrication, $551,000; assembly, $240,000; setup, $195,750; and inspection, $166,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 7,250 dlh 22,500 dlh 52 setups 91 inspections Bass boat 21,750 7,500 383 634 29,000 dlh 30,000 dlh 435 setups 725 inspections Each product is budgeted for 5,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication $fill in the blank 1 per direct labor hour Assembly $fill in the blank 2 per direct labor hour Setup $fill in the blank 3 per setup Inspection $fill in the blank 4 per inspection b. Determine the activity-based factory overhead per unit…
Use the following information for the Exercises below. Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $243,750 in the Molding department and $203,750 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows . Molding Department Trimming Department Number of Units Hours per Unit Total Hours Hours per Unit Total Hours Part Z 3,000 2.0 MH per unit 6,000 MH 3 DLH per unit 9,000 DLH Part X 4,000 2.5 MH per unit 10,000 MH 4 DLH per unit 16,000 DLH Totals 16,000 MH 25,000 DLH Required:1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours.2. Determine the overhead cost per unit for each part using the departmental rates.
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,556,000, divided into four activities: fabrication, $760,000; assembly, $296,000; setup, $270,000; and inspection, $230,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 10,000 dlh 27,750 dlh 72 setups 125 inspections Bass boat 30,000 9,250 528 875 40,000 dlh 37,000 dlh 600 setups 1000 inspections Each product is budgeted for 3,000 units of production for the year. a. Determine the activity rates for each activity. Fabrication $fill in the blank 1 per direct labor hour Assembly $fill in the blank 2 per direct labor hour Setup $fill in the blank 3 per setup Inspection $fill in the blank 4 per inspection b. Determine the activity-based factory overhead per unit…
Power company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5400 direct labor-hours. Listed below is cost driver information use in the product-costing system:
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly, $168,000; setup, $182,700; and inspection, $152,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 7,250 dlh 21,000 dlh 52 setups 91 inspections Bass boat 21,750 7,000 383 634 29,000 dlh 28,000 dlh 435 setups 725 inspections Each product is budgeted for 4,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication 15 per direct labor hour Assembly 6 per direct labor hour Setup 420 per setup Inspection 210 per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat 24 per unit
The Shoe For You Company manufactures two types of shoes; dress and casual shoes. For the month of May, the company plans to produce 21,000 pairs of dress shoes and 17,500 pairs of casual shoes. Both types of shoes are produced in the assembling and finishing departments. The direct labor rates for assembling and finishing departments are $13.00 per hour and $17.50 per hour, respectively. The following table indicates the amount of direct labor hours required for each type of shoe: Assembling Finishing Dress shoes 15 minutes per pair 30 minutes per pair Casual shoes 12 minutes per pair 15 minutes per pair Calculate the budgeted direct labor cost for dress shoes.
Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $324,156, using 272,400 direct labor hours. The factory overhead budget for the Assembly Department is $295,263, using 61,900 direct labor hours. If a desk lamp requires 2 hours of fabrication and 5 hours of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of desk lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is a.$4.77 b.$10.01 c.$70.05 d.$26.23
Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two-stage cost allocation system. The first stage assigns all factory overhead costs to two production departments, A and B. based on machine hours. The second stage uses direct labor hours to allocate overhead to individual products. For the current year, the firm budgeted $1,550,000 total factory overhead cost. The $1,550,000 was for the planned levels of machine and direct labor hours shown in the following table. Machine hours Direct labor hours Units produced and sold Unit cost of direct materials The following information relates to the firm's operations for the month of January: Hourly direct labor wage rate Direct labor hours in Department A per unit Direct labor hours in Department B per unit Activity Material movement Machine setups Inspections Shipment Production Production Department A Department B 6,200 31,000 1. Deluxe unit cost Regular unit cost 2. Deluxe unit overhead Regular unit…
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