2. Controllable vs. Non-Controllable Costs, Direct vs. Indirect CostsThe supervisor of the PAINTING DEPARTMENT of Honda Cars is in-charge of (1) purchasing supplies, (2)authorizing repairs, and (3) hiring labor for the department. Various costs are given:A) Sales, salaries and commissionB) Salary, supervisor of Painting departmentC) Factory heat and lightD) General office salariesE) Depreciation, factoryF) Supplies, Painting departmentG) Repairs and maintenance, Painting departmentH) Factory insuranceI) Labor costs, Painting departmentJ) Salary of factory supervisorABCDEP 60,00050,00040,00030,00020,00010,00020,00030,00040,00050,000TOTAL COSTSΑFGHIJREQUIRED: Determine the following:1. Total costs controllable by the supervisor of the Painting department.2. Total costs directly identified with the Painting department.3. Total costs allocated to the factory departments.4.1XXXXX✓✓X✓X23On the basis of the answers above, which is a FALSE statement?a.b.All controllable costs by the supervisor are direct costs of the Painting department.All direct costs of the Painting department are controllable costs by its supervisor.Painting department costs not controllable by its supervisor may be controlled by others.d. Common costs allocated to the Painting department are not controllable by its supervisor.C.

Direct cost are those cost which are directly related to particular department or any product or any…

supervisor of Hond in-charge of authorizing repairs, and (3) hiring labor for the department. Various costs are given: A) Sales, salaries and commission B) Salary, supervisor of Painting department C) Factory heat and light D) General office salaries E) Depreciation, factory F) Supplies, Painting department G) Repairs and maintenance, Painting department H) Factory insurance I) Labor costs, Painting department J) Salary of factory supervisor A B C D 40,000 30,000 20,000 10,000 20,000 30,000 40,000 50,000 TOTAL COSTS E F G P 60,000 50,000 I J REQUIRED: Determine the following: 1. Total costs controllable by the supervisor of the Painting department. 1 X X X X X ✓ ✓ purchasing supplies, X ✓ X 2 3 2. Total costs directly identified with the Painting department. 3. Total costs allocated to the factory departments. 4. On the basis of the answers above, which is a FALSE statement? a. All controllable costs by the supervisor are direct costs of the Painting department.

supervisor of Hond in-charge of authorizing repairs, and (3) hiring labor for the department. Various costs are given: A) Sales, salaries and commission B) Salary, supervisor of Painting department C) Factory heat and light D) General office salaries E) Depreciation, factory F) Supplies, Painting department G) Repairs and maintenance, Painting department H) Factory insurance I) Labor costs, Painting department J) Salary of factory supervisor A B C D 40,000 30,000 20,000 10,000 20,000 30,000 40,000 50,000 TOTAL COSTS E F G P 60,000 50,000 I J REQUIRED: Determine the following: 1. Total costs controllable by the supervisor of the Painting department. 1 X X X X X ✓ ✓ purchasing supplies, X ✓ X 2 3 2. Total costs directly identified with the Painting department. 3. Total costs allocated to the factory departments. 4. On the basis of the answers above, which is a FALSE statement? a. All controllable costs by the supervisor are direct costs of the Painting department.

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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redetermined Factory Overhead Rate Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $637,100 Shop direct labor 465,000 Shop and repair equipment depreciation 51,100 Shop supervisor salaries 142,000 Shop property taxes 25,800 Shop supplies 19,800 Advertising expense 12,700 Administrative office salaries 54,800 Administrative office depreciation expense 7,000 Total costs and expenses $1,415,300 The average shop direct labor rate is $15 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$ per direct labor hour
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Need A-D completed
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