Single plantwide factory overhead rateThe total factory overhead for Cypress Marine Company is budgeted for the year at $900,000. Cypress Marine manufactures two types ofboats: speedboats and bass boats. The speedboat and bass boat each require 10 direct labor hours for manufacture. Each product isbudgeted for 400 units of production for the year.a. Determine the total number of budgeted direct labor hours for the year.direct labor hoursb. Determine the single plantwide factory overhead rate. Round your answer to two decimal places.per dlhLAc. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate.per unitper unitSpeedboats $Bass boats $ΣGWP>10:37 AM2/26/2024

The objective of the question is to calculate the total number of budgeted direct labor hours for…

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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Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,600 machine hours per year, which represents 25,800 units of output. Annual budgeted fixed factory overhead costs are $258,000 and the budgeted variable factory overhead cost rate is $2.50 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,500 units, which took 40,600 machine hours. Actual fixed factory overhead costs for the year amounted to $251,600 while the actual variable overhead cost per unit was $2.40. Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the…
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…
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155
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…
Activity- based costing: factory overhead costs The total factory overhead for Bardot Marine Company is budgeted for the year at$600,000,divided into four activities:fabrication,$204,000;assembly,$105,000;setip,$156,000;and inspection,$135,000.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; Each product is budgeted for 250 units of production for the year.Determine(A) the activity rates for each activity and (B) the activity.based factory overhead oer unit for each product.
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,347,400, divided into four activities: fabrication, $660,000; assembly, $276,000; setup, $224,400; and inspection, $187,000. Bardot Marine manufactures two types of boats: speedboats am bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 11,000 dlh 34,500 dlh 79 setups 138 inspections Bass boat 33,000 11,500 581 962 44,000 dlh 46,000 dlh 660 setups 1,100 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly %$4 per direct labor hour Setup %$4 per setup Inspection 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 %$4 per unit
Multiple production department factory overhead rates The total factory overhead for Cypress Marine Company is budgeted for the year at $567,500, divided into two Fabrication, $311,250, and Assembly, $256,250. Cypress Marine manufactures two types of boats: speedboats speedboats require two direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boa labor hour in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 5,000 units of pri If required, round all per unit answers to the nearest cent.
Gloves and mittens are two related goods made by Kettle Factory. The overall manufacturing overhead budget is $1,050,000, with 600,000 direct labor hours expected. Glove manufacture is expected to take 375,000 direct labor hours, while mitten production will take 225,000 direct labor hours. Round your answers to two decimal places, if necessary. a. Determine the single plantwide factory overhead rate based on direct labor hours.$fill in the blank 1 per direct labor hour b. How much is the factory overhead cost per pair of gloves if each pair requires 2 hours to produce?$fill in the blank 2 c. How much is the factory overhead cost per pair of mittens if each pair takes 1.5 hours to produce?$fill in the blank 3 d. How much total factory overhead will be allocated to glove production if 187,500 pairs are budgeted and 190,000 pairs are actually produced during the period? Use your answer from (b) above.$fill in the blank 4 e. How much total factory overhead will be allocated to mitten…
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…
The Pipe Company manufactured two products A and B during the first year of its operations. For purposes of product costing, an overhead rate of application of $1.70 per direct labour hour was used based on budgeted factory overheads of $ 3,40,000 and budgeted direct labour hours of 2,00,000 as follows: Budgeted overheads $2,40,000 $ 1,00,000 $3,40,000 Budgeted hours Department 1 Department 2 1,00,000 1,00,000 2,00,000 The number of Labour hours required to manufacture each of these products was : Product A Product B In Department 1 In Department 2 4 1 1 4 At the end of the year, there was no work-in-progress. There were, however, 2,000 and 6,000 finished units respectively of products A and B on hand. Assume that budgeted activity was attained. (a) What was the effect on the Company's income of using a plantwise overhead rate instead of departmental overhead rates ? (b) Assume that material and labour costs per unit of product A were $ 10 and that the selling price was established by…
The total factory overhead for Big Light Company is budgeted for the year at $448,060. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 10,900 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,700 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ per unit Desk lamps $ per unit
The total factory overhead for Big Light Company is budgeted for the year at $1,163,800. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 17,900 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 21,800 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unit

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