Summit Manufacturing's manufacturing overhead is 75% of its total conversion costs. If direct labor is $45,000 and if direct materials are $28,000, the manufacturing overhead is: a. $73,500 b. $54,750 c. $135,000 d. $34,500

Summit Manufacturing's manufacturing overhead is 75% of its total conversion costs. If direct labor is $45,000 and if direct materials are $28,000, the manufacturing overhead is: a. $73,500 b. $54,750 c. $135,000 d. $34,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

See similar textbooks

Related questions

Q: Fulton Designs is making 15 customized birthday invitations. The production costs include $30 in…

A: Explanation of Materials Cost: Materials cost represents the direct materials used in creating the…

Q: What is the total period for the month under variable costing?

A: Explanation of Period Cost Under Variable Costing:Period costs under variable costing refer to…

Q: ??

A: Concept of Contribution Margin per UnitThe contribution margin per unit is the amount by which the…

Q: Please provide answer this financial accounting question

A: Step 1: Introduction to budgetingBudgeting is defined as the process of preparing a financial plan…

Q: general accounting a

A: Step 1: Definition of Gross MarginGross margin is a financial metric that represents the percentage…

Q: 5 POINTS

A: Concept of Traditional Overhead AllocationThe traditional overhead allocation method assigns…

Q: Hy expert give me solution

A: Step 1: Define Supplies and ToolsSupplies and tools are considered assets in a company's balance…

Q: help me to solve this questions general accounting

A: Step 1: Definition of Degree of Operating Leverage (DOL)The degree of operating leverage (DOL)…

Q: ???

A: Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…

Q: 6 MARKS

A: Concept of Fixed CostFixed cost refers to expenses that do not change regardless of the number of…

Q: Opereting cash flow to be ?

A: To solve the problem, we can use the formula for the degree of operating leverage (DOL): Percentage…

Q: answer

A: To allocate the fringe benefits cost to Division A and Division B, we use the proportion of…

Q: General accounting

A: Step 1: Define Break Even SalesAny business needs to sustain for a longer period. Businesses can…

Q: Please give me true answer this financial accounting question

A: Step 1: Definition of Stock Price Valuation Using the Price-to-Earnings (P/E) RatioThe…

Q: Need help

A: Step 1: Define Cost of GoodsThe cost of goods includes all the costs that are incurred in the…

Q: Provide answer

A: Step 1: Definition of Gross PayGross pay refers to the total earnings an employee receives before…

Q: John wick Company has total assets of $162,000. It has a profit margin of 6.5 percent on sales of…

A: Net Income = Sales x Profit MarginNet Income = $230,000 x 6.5%Net Income = $230,000 x 0.065Net…

Q: Question 4 Waterfront Inc. wishes to borrow on a short-term basis without reducing its current ratio…

A: Step 1: Determine the Current RatioCurrent Ratio = Current Assets / Current LiabilitiesCurrent Ratio…

Q: What must have been the total sales?

A: Explanation of Break-even Point in Sales: Break-even point in sales represents the dollar amount of…

Q: If you give me wrong answer this financial accounting question I will give you unhelpful rate

A: Step 1: Definition of Cash Flows from Investing ActivitiesCash Flows from Investing Activities refer…

Q: how much is the fiems total equity?

A: To determine Byron, Inc.'s total equity, we will use the basic accounting equation, which…

Q: Calculate the net income for the period for Priyanka manufacturing

A: Net Income is the total profit of a company after deducting all expenses, including the cost of…

Q: Provide answer AB ?

A: Step 1: Define Variance AnalysisThe quantitative measurement of the discrepancy between actual and…

Q: Provide Answer

A: Concept of Variable OverheadThe variable overhead refers to the indirect costs of production that…

Q: Pinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and…

A: Step 1: Calculation of Earnings before taxEarnings before tax = Sales - Costs - Interest expense -…

Q: Can you help me with accounting questions

A: Step 1: Definition of Contribution MarginContribution margin is the difference between sales revenue…

Q: Subject: financial accounting

A: Explanation of Return on Assets (ROA): Return on Assets measures how efficiently a company is using…

Q: How much is net income? General accounting please given answer

A: Step 1:First, calculate the weighted average number of shares outstanding: Weighted average number…

Q: Help

A: Concept of Net IncomeThe net income of a business represents the profit earned after deducting all…

Q: How much overhead was applied to each job in year 2 ?

A: Step 1: Definition of Overhead ApplicationApplied overhead refers to the allocation of estimated…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Accrued ExpensesAccrued expenses are expenses that have been incurred but not…

Q: None

A: Debt Ratio = Total Debt/Total Equity42% = 198,400/Total EquityTotal Equity = 198,400/42%Total…

Q: The Aakash Company forecasts that total overhead for the current year will be $17,000,000 and total…

A: Given:Estimated overhead =$17,000,000Estimated Machine hours = 250,000 hours Predetermined overhead…

Q: What is the variable cost per unit processed?

A: Explanation of Variable Cost: Variable cost is a business expense that changes in proportion to the…

Q: Assume the cost of capital is 13 percent

A: 1. Calculate the total return:Total return = Cash inflow - Initial investmentTotal return = $660,000…

Q: Brookfield Corporation acquired Sunset Industries on January 1, 2015 for $5,500,000, and recorded…

A: Explanation of Goodwill:Goodwill is an intangible asset that arises when a company acquires another…

Q: Please provide solution this financial accounting question not use ai

A: Step 1: Define Rate of Return (ROR)The Rate of Return (ROR) is a financial metric that measures the…

Q: ABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70…

A: Market Value of Equity=Shares Outstanding ×Market Price per ShareMarket Value of EquityMarket Value…

Q: Provide correct answer general accounting

A: Step 1: Net present value (NPV) for the investment can be calculated by subtracting the Initial…

Q: What is the predetermined overhead rate of this financial accounting question?

A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate (POHR) is an…

Q: General accounting

A: Step 1: Definition of Sustainable Growth Rate (SGR)The sustainable growth rate (SGR) represents the…

Q: Aakash Tech Ltd. has projected revenues of $12 billion, a gross profit margin of 60%, and projected…

A: To calculate the operating (EBIT) margin, we follow these steps:Step 1: Calculate Gross ProfitGross…

Q: What is atlas corporations net income for april?

A: Step 1: Define Net Income - Enhanced Definition Net income, also known as the "bottom line" or "net…

Q: Financial Accounting Question

A: Step 1: Define Average-Cost MethodThe Average-Cost Method (Weighted Average Cost) is an inventory…

Q: Need a solution

A: Concept of Book ValueThe book value of an asset represents its net worth in the company's financial…

Q: A manufacturer sells a product for $45 to a wholesaler, and the wholesaler sells it to a retailer.…

A: (Step by Step) / Explanations:STEP 1: Understanding the manufacturer's price.Manufacturer sells to…

Q: What is the budgeted cost of goods sold for October?

A: Step 1: Definition of Cost of Goods Sold (COGS)The Cost of Goods Sold (COGS) represents the total…

Q: Radiant Motors has sales of $5,250, total assets of $3,900, and a profit margin of 6 percent. The…

A: 1. Calculate Net Income:What is Net Income? Net income is the company's profit after all expenses,…

Q: What is the cost of goods manufacturing?

A: Explanation of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured (COGM) represents the…

Q: General Accounting

A: Step 1: Define Make-or-Buy DecisionA make-or-buy decision analyzes whether a company should continue…

Question

100%

Hi expert please give me answer general accounting question

Summit Manufacturing's manufacturing overhead is 75% of its total
conversion costs. If direct labor is $45,000 and if direct materials are $28,000,
the manufacturing overhead is:
a. $73,500
b. $54,750
c. $135,000
d. $34,500

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?