Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $90,000 Factory foremen salaries: $91,000 Machinery setup costs: $35,000 Total manufacturing overhead: $216,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Overhead Cost Direct Labor Costs Direct Labor Hours Machine Hours Production Runs Units Produced Allocation Base Direct labor-hours Machine hours Number of production runs Factory Utilities Factory foremen salaries Setup costs During the current month, the following levels of activities were incurred: Car Seats $ 65,250 4,500 5,700 45 1,600 Strollers $ 112,375 7,750 9,000 72 3,500 Baby Swings $ 38,425 2,650 3,900 50 1,070 Estimate Activity Level What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round into calculations. Round your answer to the nearest dollar.) 14,900 18,600 167 Total $ 216,050 14,900 18,600 167 6,170

Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows: Factory utilities: $90,000 Factory foremen salaries: $91,000 Machinery setup costs: $35,000 Total manufacturing overhead: $216,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: Overhead Cost Direct Labor Costs Direct Labor Hours Machine Hours Production Runs Units Produced Allocation Base Direct labor-hours Machine hours Number of production runs Factory Utilities Factory foremen salaries Setup costs During the current month, the following levels of activities were incurred: Car Seats $ 65,250 4,500 5,700 45 1,600 Strollers $ 112,375 7,750 9,000 72 3,500 Baby Swings $ 38,425 2,650 3,900 50 1,070 Estimate Activity Level What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round into calculations. Round your answer to the nearest dollar.) 14,900 18,600 167 Total $ 216,050 14,900 18,600 167 6,170

Name: Starbright manufactures child car seats, strollers, and baby swings.
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs arebudgeted as follows:Factory utilities: $90,000Factory foremen salaries: $91,000Machinery setup costs: $35,000Total manufacturing overhead: $216,

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

Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A…
Surratt Corp is projecting activity costs associated with producing disk drives, tapes drives, and wire drives. Indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. What is the activity rate for the procurement activity cost pool? Procurement Scheduling Materials handling Product development Production Activity Cost $ 370,000 250,000 500,000 730,000 1.500,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Production Orders Number Number of Machine Engineering Hours Changes Number of Number of of Moves 1.400 Orders Units Disk drives 300 2,000 2,000 4,000 4,000 12,000 10 Tape drives Wire drives. 150 800 10 8,000 4,000 800 4,000 25 10,000 2,500
The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: Fabrication Department factory overhead $612,000 Assembly Department factory overhead 252,000 Total $864,000 Direct labor hours were estimated as follows: Fabrication Department 3,600 hours Assembly Department 3,600 Total 7,200 hours In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Gasoline Engine Diesel Engine Fabrication…
Vanderbilt Metal Works produces two types of metal lamps. Vanderbilt manufactures 24.640 basic lamps and 6,250 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for setup costs and the other for general manufacturing overhead. Vanderbilt allocates setup costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manu- facturing labor-hours. It provides the following budgeted cost information: 5-2 Designer Lamps Total Basic Lamps $ 5 $19 Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs 0.4 hours 0.5 hours $30 $30 $130,800 320 50 1 hour 2 hours $ 89,877 Calculate the total budgeted costs of the basic and designer lamps using Vanderbilt's activity-based costing system.
The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: Fabrication Department factory overhead $455,000 Assembly Department factory overhead 175,000 Total $630,000 Direct labor hours were estimated as follows: Fabrication Department 3,500 hours Assembly Department 3,500 Total 7,000 hours In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Gasoline Engine Diesel Engine Fabrication…
Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A…
Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for set up costs and the other for general manufacturing overhead. Amherst allocates setup costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information Basic Lamps Designer Lamps Total Direct materials per lamp $ 8 $ 15Direct manufacturing labor-hours per lamp 0.5 hours 0.6 hoursDirect manufacturing labor rate per hour $ 20 $ 20Setup costs $ 114,000Lamps produced per batch 250 50Setup-hours per batch 1 hour 3 hoursGeneral manufacturing overhead costs $ 120,000 Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity-based costing system. calculate the overhead rate for general manufacturing overhead. (Abbreviations…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $304,100 Number of purchase orders Scheduling 238,200 Number of production orders Materials handling 445,500 Number of moves Product development 734,300 Number of engineering changes Production 1,517,800 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,070 320 1,480 14 1,600 2,400 Tape drives 1,800 185 740 5 10,000 4,500 Wire drives 12,900 740 3,800 23 10,100 2,400 The activity-based cost for each tape drive unit is Oa. $725.11 Ob. $247.23 Oc. $201.36 Ód. $16.2
Hamid Ltd produces two products – shoes and belts. At present the company uses absorption costing, based on a labour hours rate, to establish the production overhead costs. The budgeted information for Period 4 is shown below. Product Shoes Belts Production in units 6000 5000 Machine hours per unit 5 hrs 6 hours Labour Hour per unit 3 hours 7 hours The overhead and cost driver information for Period 4 is shown below. Activity Cost in (£) Product Inspection 46,200 Machine Set-up 21,000 Machine maintenance 20,800 Handling and Packaging 26,400 Additional information Product inspection – one in every ten products is inspected. Machine set-up – the company uses a single machine to produce both products. For period 4, 300 setups will be made that will be shared equally between both the products. Machine maintenance – this is based on a predetermined number of machine hours. Product handling and packaging – each product…
Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A Product BRequired Investment…
Mission Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below (CMA adapted) Units produced Material moves per product line. Direct labor-hours per product line Budgeted material handling costs: $644,000 Wall Mirrors Specialty Windows 220 20 5 1,100 60 1,200 Under a traditional costing system that allocates overhead on the basis of direct labor-hours, the materials handling costs allocated to one unit of Specialty Windows would be Multiple Choice O $16.800 $54,900 $14,000 $22.700
Joker Ltd manufactures two products, Normal and Plus. It has recently implemented an activity-based costing system for its manufacturing overhead costs, with the budgeted activity cost and budgeted quantity of activity driver as follows: Activity Budgeted Activity Cost Activity Driver Budgeted Quantity of Activity Driver Labour-related 205,000 Direct labour hours 41,000 Machine setups 227,000 Number of setups 5,000 General factory 340,000 Machine hours 34,000 772,000 The breakdown of the expected consumption of activities by the two products is as follows: Normal Plus Labour-related 25,000 16,000 Machine setups 2,000 3,000 General factory 20,000 14,000 For the next accounting period, the expected production volume of Normal is 4,500 units and Plus is 3,000 units. Required:Calculate the overhead cost per unit of a Plus.