Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs. $5,780,000 615,000 Chairs Expected production 219,000 units Direct labor hours required Tables 24,000 units 15,800 DLH 400 pounds 252,000 DLH Hazardous waste disposed 500 pounds Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours. Overhead costs $ 615,000 0 Product Activity Driver OH $ per direct labor hour OH Cost per unit Units Produced 0 Chairs Total Overhead Cost 0.00 $ 0.00 $ $ $ 0 Tables 0 0 2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of. Product Activity Driver Units Produced OH Cost per unit OH $ per pound $ Total Overhead Cost 0.00 $ 0.00 $ 0 $ Chairs Tables 0 0 0

Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs. $5,780,000 615,000 Chairs Expected production 219,000 units Direct labor hours required Tables 24,000 units 15,800 DLH 400 pounds 252,000 DLH Hazardous waste disposed 500 pounds Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours. Overhead costs $ 615,000 0 Product Activity Driver OH $ per direct labor hour OH Cost per unit Units Produced 0 Chairs Total Overhead Cost 0.00 $ 0.00 $ $ $ 0 Tables 0 0 2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of. Product Activity Driver Units Produced OH Cost per unit OH $ per pound $ Total Overhead Cost 0.00 $ 0.00 $ 0 $ Chairs Tables 0 0 0

Name: Smythe Co. makes furniture. The following data are taken from its pro
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Smythe Co. makes furniture. The following data are taken from its production plans for the year.Direct labor costsHazardous waste disposal costs$5,780,000615,000ChairsExpected production219,000 unitsTables24,000 units15,800 DLHDirect labor hours req

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Anlo Corp makes bottles using the latest automated technology. The company applies FOH cost to product on the basis of machine hours. The following are estimate used to determine factory overhead rate at the start of the year Machine hours 150,000 Factory Overhead Cost 1,800,000 The company cost records shows the following actual cost incurred for the year, Machine hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (Includes FOH applied of P72,000) 200,000 Finished Goods (includes FOH applied of P360,000) 1,000,000 Cost of Goods Sold (includes FOH applied of P1,008,000)…
Meman
Drilling Company uses activity-based costing and provides this information: Manufacturing Activity Cost Driver Driver Rate Materials handling Number of parts $ 0.60 Machinery Number of machine hours 51.00 Assembly Number of parts 2.85 Inspection Number of finished units 30.00 Drilling has just completed 80 units of a component for a customer. Each unit required 100 parts and 3 machine hours. The prime cost is $1,300 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 80 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $180 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $300 per unit. Compute the full product cost per unit, including…
Trying to find the activity based costing of the following for the allocated overhead
A Midwest producer of specialty farming equipment, Agriboon, has three products that the company needs costing information about. The following information is available for each product. XY263 GO987 TR345 Direct material cost per unit $2.00 $8.00 $10.00 Direct labor cost per hour $15.00 $16.75 $18.00 Agriboon presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026. The product leader for GO987 has suggested that Agriboon switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year: Activity Recommended Cost Driver Estimated Cost Estimated Cost Driver Units Materials Handling Requisition Request $38,912 1,216 Request Machine Operations Machine Hours $142,500 12,000 Hours Safety Compliance Compliance Test $125,000 1,100 Test Total OH…
Kelso Manufacturing allocates manufacturing overhead using a single predetermined rate based on a planned use of 15,000 direct labour hours per year. Company leadership recently learned that its costing system may be too simple for its operations, and that job cost fairly inaccurate. A consultant was hired to study overhead costs, and the following information reflects the cost pools and activity rates that were determined: Cost Pool Total Cost Activity Rate Purchasing $90,000 $30/purchase order Assembly $150,000 $?/direct labour hour Inspection $60,000 $15/inspection Production $150,000 $3/unit produced $450,000 Total Based on the information presented in the introduction and table above, Kelso's single predetermined manufacturing overhead cost rate is __________ and its rate for the Assembly cost pool is __________ Question 8 a. $30/direct labour hour; $30/direct labour hour b. $30/direct labour hour; $10/direct labour hour C. $30/direct labour hour; $15/direct labour hour d.…
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. Overhead Direct LaborHours (dlh) Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.
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. Direct Overhead Labor Hours (dlh) $248,000 72,000 $320,000 10,000 dlh 10,000 20,000 dlh Product A Painting Dept. Finishing Dept. Totals Using a single plantwide rate, the factory overhead allocated per unit of Product B is O a. $640 O b. $496 O c. $320 C. O d. $144 16 dlh 4 Product B 4 dlh 20 dlh 16 20 dlh Ⓒ
Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha and Beta. The company has the following direct materials data for its product. Standard costs for one unit of output 28 units of input at 56 units of input at Alpha Beta The company had the following results in June. Units of output produced 3,600 units Materials purchased and used Alpha Beta 108,800 units at $ 5.50 193,600 units at $14.80 $ 6.00 $14.50 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Compute materials mix and yield variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Total Materials mix variance Materials yield variance Alpha
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours Job Bravo Direct labor-hours Machine-hours Assembly $1,400,000 70,000 28,000 Assembly Fabrication 15 7 7 10 Fabrication Total $1,680,000 $3,080,000 Total 22 17 42,000 140,000 112,000 168,000 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied…
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($639,200 + 940,000 units) Parker Plastic had the following actual results for the past year. Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,020,000 12,900,000 $ Direct Labor Rate Variance Direct Labor Efficiency Variance 16,770,000 338,000 $ 4,258,800 $ 1,760,000 $ 395,000 Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Answer is complete but not…