Single plantwide factory overhead rateSpotted Cow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is$277,200.The three products consume both machine hours and direct labor hours in the two production departments as follows:Blending DepartmentDirect LaborHoursMachineHoursWhole milk200570Skim milk210520Cream170210Sub total5801,300Packing DepartmentWhole milk240340Skim milk380420Cream1201407409001,3202,200Sub totalTotalRequired:1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. If required, round all amounts to thenearest dollar.Direct labor hour overhead rate $Machine hour overhead rate $per direct labor hourper machine hour2. Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.Direct labor hoursMachine hoursWhole MilkSkim MilkCream

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Answered: Single plantwide factory overhead rate…

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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Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Painting Dept. Finishing Dept. Totals Overhead $254,100 80,200 $334,300 Ob. $2.07 per dlh Oc. $7.71 per dlh Od. $24.20 per dlh Total Direct Labor Hours 10,500 10,400 20,900 DLH per Product A 9 6 15 B 10 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $16.00 per dlh 6 16
single Plantwide Factory Overhead Rate Salty Sensations Snacks Company manufactures three types of snack foods: tortita chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity tndirect materials selling expenses Administrative expenses Total costs $31,360 78,400 7,840 35,400 25,000 18,000 $196,000 Factory 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: If required, round all per unit ansyers to the nearest cent. a. Determine the single plantwide factory overhead rate. x per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. Total Per Case
Which of the following statements is true regarding the payback period? Multiple Choice It measures the length of time that it takes for a project to recover its initial cost from the discounted net cash inflows that it genera It measures the length of time that it takes for a project to recover its initial cost from the net cash inflows that it generates. It measures the length of time that it takes for a project to recover its initial cost from the incremental net operating income that It measures the length of time that it takes for a project to recover its initial cost from the discounted incremental net operating it generates.
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $105,000. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 2,300 units 0.6 Clarinets 700 1.6 Oboes 1,000 1.0 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.$fill in the blank 1 per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. TotalFactory Overhead Cost Per UnitFactory Overhead Cost Flutes $fill in the blank 2 $fill in the blank 3 Clarinets fill in the blank 4 fill in the blank 5 Oboes fill in the blank 6 fill in the blank 7 Total…
Product costs using activity rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its 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: Activity Activity Rate Fabrication $32 per machine hour Assembly $34 per direct labor hour Setup $86 per setup Inspecting $24 per inspection Production scheduling $23 per production order Purchasing $14 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 650 450 Direct labor hours 192 257 Setups 37 37 Inspections 31 38 Production orders 30 20 Purchase orders 318 93 Units produced 530 420 This information has been collected in the Microsoft Excel Online…
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,290,000, divided into two departments: Fabrication, $772,500, and Assembly, $517,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 7,500 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication direct labor hours Assembly direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication per dlh Assembly per dlh c. Determine the factory overhead allocated per unit for each product using the department factory…
Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead Total The direct labor estimated for each production department was as follows: Pattern Department 1,600 direct labor hours Cut and Sew Department 2,000 Total 3,600 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments…
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Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Administrative expenses Total costs Tortilla chips Potato chips Factory 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 Volume Processing Hours (Cases) Per Case Pretzels Total Tortilla chips Potato chips $24,012 59,508 6,000 6,000 1,200 13,200 Pretzels 6,786 14,094 33,408 18,792 $156,600 Total If required, round all per-case answers to the nearest cent. a. Determine the single plantwide factory overhead rate. per processing hour 0.12 0.15 b. 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. Total Per-Case Factory Overhead Factory Overhead 0.10
Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $104,040. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Instruments BudgetedProductionVolume Direct LaborHours Per Unit Flutes 2,300 units 0.5 Clarinets 400 1.6 Oboes 1,000 1.1 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.fill in the blank 1 of 1$ per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, Instruments TotalFactory Overhead Cost Per UnitFactory Overhead Cost Flutes fill in the blank 1 of 7$ fill in the blank 2 of 7$ Clarinets fill in the blank 3 of 7 fill in the blank 4 of 7 Oboes fill in the blank 5…
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Painting Dept. Finishing Dept. Totals Overhead $257,800 76,100 $333,900 Direct Labor Hours (dlh) 10,200 dlh 11,700 21,900 dlh Using a single plantwide rate, the factory overhead alloca Oa. $15.25 Ob. $151.65 Oc. $152.50 d. $244.00 Product A 6 dlh 4 10 dlh ed per unit B 10 dlh 6 16 dlh Product B is
Product Costs and Product Profitability Reports, using a Single Plantwide Factory Overhead Rate Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: Budgeted Volume(Units) Direct LaborHours Per Unit Price PerUnit Direct MaterialsPer Unit Pistons 11,000 0.30 $46 $22 Valves 21,000 0.15 11 4 Cams 2,000 0.20 61 26 The estimated direct labor rate is $26 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $191,800. If required, round all per unit answers to the nearest cent. a. Determine the plantwide factory…

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