Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017. Estimated Overhead Expected Use of Cost Drivers per Activity Activity Cost Pools Ordering and receiving $73,800 12,000 orders Food processing 420,750 55,000 machine hours Packaging 1,365,000 420,000 labor hours For 2017, the company had 10,000 orders and used 48,000 machine hours, and labor hours totaled 490,000. Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving per order %24 Food processing per machine hour 2$ Packaging per labor hour LINK TO TEXT INTERACTIVE TUTORIAL What is the total overhead applied? Total overhead applied

Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017. Estimated Overhead Expected Use of Cost Drivers per Activity Activity Cost Pools Ordering and receiving $73,800 12,000 orders Food processing 420,750 55,000 machine hours Packaging 1,365,000 420,000 labor hours For 2017, the company had 10,000 orders and used 48,000 machine hours, and labor hours totaled 490,000. Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving per order %24 Food processing per machine hour 2$ Packaging per labor hour LINK TO TEXT INTERACTIVE TUTORIAL What is the total overhead applied? Total overhead applied

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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Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. CB uses two direct cost categories: direct materials and direct manufacturing labour. Johnson feels that manufacturing overhead is most closely related to material usage. Therefore, CB allocates manufacturing overhead to production based upon pounds of materials used. At the beginning of 2021, CB budgeted annual production of 200,000 blocks and adopted the following standards for each block: Input Cost/Block Direct materials 0.5 Ib. @ $12/lb. $ 6.00 Direct manufacturing labour 1.4 hours @ $20/hour 28.00 Manufacturing overhead: Variable $6/lb. 0.5 Ib. 3.00 Fixed $15/lb. 0.3 Ib. 4.50 Standard cost per block $41.50 Actual results for April 2021 were as follows: Production 24,000 blocks Direct materials purchased 12,000 lb. at $13/lb. Direct materials used 11,450 lb. Direct manufacturing labour 38,000 hours for $798000 Variable manufacturing overhead $68,150 Fixed manufacturing overhead…
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Melissa Jones is manager of a production department of Seal Company. Her department makes one product; the following information for her department was accumulated for 2014: Static Budget Actual Results Number of units 100,000 91,000 Direct materials cost 400,000 350,000 Direct Labor cost 200,000 180,000 Variable manufacturing overhead 100,000 97,000 Fixed manufacturing overhead 145,000 146,000 Total $845,000 $773,000 Required: 1)Using the table below, prepare a flexible budget for the department's actual level of activity. 2) Using the table below, use the flexible budget to evaluate the performance of Ms. Jones' department. 3) Why does the budget not include sales revenue and net income? Flexible Budget Actual Results Variance Number of units Direct materials cost Direct labor cost Variable manufacturing overhead Fixed manufacturing overhead Total
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