Snyder Company produced 85,600 units during its first year of operations and sold 81,750 at $22.30 perunit. The company chose practical activity-at 85,600 units-to compute its predetermined overhead rate.Manufacturing costs are as follows:Direct materialsDirect labor$504,184121,552Expected and actual variable overhead379,208Expected and actual fixed overhead460,528Requlred:If required, round unit cost answers to the nearest cent.1. Calculate the unit cost and the cost of finished goods inventory under absorption costing.Unit CostCost of finished goods inventory2 Calculate the unit cost and the cost of finished goods inventory under variable costing.Unit CostCost of finished goods inventory

Unit cost: =Cost of Goods Manufactured / Number of units manufactured Finished goods inventory cost:…

Answered: Snyder Company produced 85,600 units…

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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In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturing overhead in making 500,000 telephones. Grosha actually produced 508,000 telephones, incurring actual overhead costs of $599,400. Grosha establishes its predetermined overhead rate based on the planned volume of production (expected number of telephones). Required a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Predetermined overhead rate per unit a. b. Total fixed cost spending variance F Total fixed cost volume variance F c.
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 55,000 machine-hours would be required for the period's estimated level of production. It also estimated $960,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 15,000 Job C-200 Direct…
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Rocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Activity Overhead per Activity Annual Usage Machine Set Up $75,000 6,000 Machine Hours $85,002 5,484 Inspections $70,000 20,000 Compute the overhead rate for each activity.
Cool Pool has these costs associated with production of 25,847 units of accessory products: direct materials, $68; direct labor, $105; variable manufacturing overhead, $48; total fixed manufacturing overhead, $780,482. What is the cost per unit under the absorption method? Round to the nearest penny, two decimal places.
For the indicated units produced, South-western, Inc. reported the costs shown below: Units produced: 9,200 2,700 Total direct material: $268,640 $78,840 Total direct labor: $322,920 $94,770 Total manufacturing overhead: $1,075,616 $870,866 Part A: South-western, Inc.'s variable manufacuring cost per unit for is closest to: $95.80 $64.30 $29.20 $31.50 $66.60 Part B: South-western, Inc. 's fixed manufacuring cost is: $1,355,826 $785,816 $1,667,176 $1,044,476 Part C: at a level of 6,000 units, South-western, Inc.'s total manufacuring cost would be: $2,321,058 $1,087,289 $1,704,174 $1,360,616
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Direct materials: Standard: 1.80 feet at $2.20 per foot Actual: 1.75 feet at $2.40 per foot Direct labor: Standard: 0.90 hour at $14.00 per hour Actual: 0.95 hour at $13.40 per hour Variable overhead: Standard: 0.90 hour at $5.00 per hour Actual: 0.95 hour at $4.60 per hour Total cost per unit Excess of actual cost over standard cost per unit Required 1 Standard Cost per Unit $3.96 Required 2 12.60 Required 3 4.50 Complete this question by entering your answers in the tabs below. $ 21.06 1a. Materials price variance 1a. Materials quantity variance 1b. Labor rate variance 1b. Labor efficiency variance 1c. Variable overhead rate variance 1c. Variable overhead efficiency variance The production superintendent was pleased when he saw this report and commented: "This $0.24 excess cost is well within the 5 percent limit management has set for…
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 55,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost…
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Dexter Company, which produces a single product, has the following standard cost and actual cost information: Standard cost: Direct materials ( 8 pounds @ $2.5/lb) $20 Direct labor (3 direct labor hours @$12/hour) 36 Manufacturing OH (3 DLH @ $10/DLH) 30 Total $86 Dexter Company assigns overhead (OH) cost based on direct labor hours (DLH). The $10/DLH pre-determined overhead rate is determined as follows: $7/DLH variable OH and $3/DLH fixed OH ($2,160/720DLH). 720 DLH reflects the capacity hours of producing 240 units (240 units X 3DLH/unit). Please note that it takes three direct labor hours to produce each unit of product. During the period, 230 units were produced at the following cost: Direct materials ( 1900 pounds @ $2.6/lb) $4,940 Direct labor (700 hours @$11.60/hour) 8,120 Manufacturing OH ($4,300 variable OH and $2,000 fixed OH) 6,300 Total $19,360 (Please note that you’ll be asked to compute several variances in this exam based on the same information…
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Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 52,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours During the year, the company had no…

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