Sunland Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processingdepartment to be $177000. The company produces 53000 sweaters and 78000 jackets each year. Sweater production requires 23000machine hours, jacket production requires 49000 machine hours. The company places raw materials orders 12 times per month, 4times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overheadshould be allocated to jackets?O $44250O $69250O $135000O $118000

Lets understand the basics.Overhead cost are costs which can not be traced over a product because it…

Answered: Sunland Inc. manufactures two products,…

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

The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600,000 and will require 100,000 direct labor hours at an estimated cost of P1,000,000. The machine will run about 320,000 hours. What is the predetermined factory overhead rate based on material cost? * P25.00 O 250.00% O P7.8125 156.25% O P62.50
Lakeside Bakery makes pies. Each pie requires 1/2 of a direct labor hour. The variable overhead rate is S0.50 per direct labor hour. Lakeside's estimated fixed overhead is $425,000. Lakeside budgets pie production at 600,000 pies for the upcoming year. What is Lakeside's total estimated overhead? $625,000 $420,000 $635,000 $425,000 O $845,000
Han Products manufactures 22,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 10.00 2.40 6.00 $ 22.00 An outside supplier has offered to sell 22,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $72,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer?
Cc.70.
Brightstone Tire and Rubber Company has capacity to produce 153,000 tires. Brightstone presently produces and sells 117,000 tires for the North American market at a price of $91 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 18,000 tires for $75.15 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $35 Direct labor 13 Factory overhead (60% variable) 21 Selling and administrative expenses (40% variable) 18 Total $87 Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5 per tire. In addition, Euro has made the order conditional on receiving European safety…
Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of BR500 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for BR500 for this period are O 8,800 hours of assembling; 17,600 hours of polishing O 11,200 hours of assembling: 22,400 hours of polishing 17,600 hours of assembling: 8,800 hours of polishing O 22,400 hours of assembling: 11,200 hours of polishing
Your Brother's Company manufactures lights. Each light uses $15 in direct materials and $5 in direct labor per unit. Way has two activities: Machining, which is applied at the rate of $3 per machine hour, and Finishing, which is applied at the rate of $16 per batch. This month, Way made 250 lights, using 1,500 machine hours in 47 batches. What is the total manufacturing cost for one light? O $21 O $36 $41 O $26
Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm and total overhead of 474000. the company plans to manufacture 400 downy mattresses and 100 firm mattresses this year. in manufacturing the mattresses, the company must perform 600 material moves for the downy and 400 for the firm. it processes 900 purchase orders for the downy and 700 for the firm. the companys employee work 1400 direct labor hours on the downy product and 3400 on the firm. sleep tights total material handling costs are 300000 and its total purchasing costs are 174000 using abc how much overhead would be assigned to the downy product? 1. 237,0002. 277,8753. 196,1254. 335,750
Subject: Acounting
Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 20,000 tires for $116 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $56 Direct labor 22 Factory overhead (60% variable) 25 Selling and administrative expenses (45% variable) 26 Total $129 Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.50 per tire. In addition, Euro has made the order conditional on receiving…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS