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 2020. Activity Cost Pools Ordering and receiving Food processing Packaging For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000. (a) Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Estimated Estimated Use of Cost Drivers per Activity Overhead $80,886 12,200 orders 437,760 57,000 machine hours 1,975,800 445,000 labor hours Ordering and receiving $ Food processing Packaging eTextbook and Media (A $ $ Overhead Rates per order per machine hour per labor hour

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 2020. Activity Cost Pools Ordering and receiving Food processing Packaging For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000. (a) Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Estimated Estimated Use of Cost Drivers per Activity Overhead $80,886 12,200 orders 437,760 57,000 machine hours 1,975,800 445,000 labor hours Ordering and receiving $ Food processing Packaging eTextbook and Media (A $ $ Overhead Rates per order per machine hour per labor hour

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Sparkle Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Sparkle has a set up capacity of 2,220 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs Data table 1. Quantity of lamps to be produced 2. Number of lamps to be produced per batch 3. Setup time per batch Variable cost = $70 per setup-hour Fixed cost = - $79,000 Knox 21,000 lamps 50 lamps/batch 3 hours/batch Ayer 12,000 lamps 50 lamps/batch 4 hours/batch X
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