Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 17,000 hours for production: Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable overhead cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost Total factory overhead cost $44,200 12,410 20,400 $73,020 19,220 35,860 $77,010 128,100 $205,110

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 17,000 hours for production: Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable overhead cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost Total factory overhead cost $44,200 12,410 20,400 $73,020 19,220 35,860 $77,010 128,100 $205,110

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

Jackson Company's expected activity level for next year is 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Indirect $140,000 materials Indirect labor 200,000 Factory supplies B) $360,000. C) $458,000. 20,000 D) $408,000. Depreciation $60,000 Taxes Supervision 10,000 A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of how much? OA) $384,000. 50.000 Fixed
Yuvwell Corporation's direct labor budget for next year contained the following Information: Budgeted direct labor-hours 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8,000 8,200 8,500 7,800 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.25 per direct labor-hour and its total fixed manufacturing overhead is $48,000 per quarter. The only noncash Item Included in fixed manufacturing overhead is depreciation of $16,000 per quarter. Required: 1. Prepare the company's manufacturing overhead budget for next year. 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for next year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's manufacturing overhead budget for next year. Note: Round "Variable manufacturing overhead rate" answers to 2 decimal places. Yuvwell Corporation…
Aspen Technologies has the following budget data: Estimated direct labor hours 8,800 Estimated direct labor dollars $68,500 Estimated factory overhead costs $153,700 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a.$17.47 b.$20.96 c.$26.20 d.$13.97
Metal Works Corporation has a significant level of manufacturing overhead. After preparing their budget for the next year, management expects the following overhead costs (the cost driver for each overhead cost pool is also shown): Activity Total Cost Cost Driver Maintenance $20,000 Machine hours Materials receiving 48,000 Shipments received Machine setups 8,000 # of setups Inspection 19,200 # of inspections The expected activity for the year for various cost drivers is: Cost Drivers Expected Activity Direct Labor Hours 32,000 Machine-hours 10,000 Shipments Received 4,000 Setups 80 Quality inspections 6,400 The company is considering accepting a significant production contract. Estimates for the contract are as follows: Contract Estimate Direct materials $96,000 Direct labor ( 640 hours) $128,000 Number of material shipments received 200 Number of inspections 320 Number of setups 8 Number of machine-hours 1,200…
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 18,000 hours for production: Variable overhead costs: Indirect factory labor $43,200 Power and light 13,320 Indirect materials 25,200 Total variable overhead cost $81,720 Fixed overhead costs: Supervisory salaries $66,460 Depreciation of plant and equipment 17,490 Insurance and property taxes 32,650 Total fixed overhead cost 116,600 Total factory overhead cost $198,320 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead costs: Indirect factory labor $39,780 Power and light 12,350 Indirect…
The total factory overhead for Bardot Marine Company is budgeted for the year at $937,950, divided into four activities: fabrication, $435,000; assembly, $168,000; setup, $182,700; and inspection, $152,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 7,250 dlh 21,000 dlh 52 setups 91 inspections Bass boat 21,750 7,000 383 634 29,000 dlh 28,000 dlh 435 setups 725 inspections Each product is budgeted for 4,500 units of production for the year. а. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly 24 per direct labor hour Setup 24 per setup Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat per unit
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 8,000 hours for production: Variable overhead cost: Indirect factory labor $24,800 Power and light 6,000 Indirect materials 11,200 Total variable overhead cost $ 42,000 Fixed overhead cost: Supervisory salaries $34,880 Depreciation of plant and equipment 9,180 Insurance and property taxes 17,140 Total fixed overhead cost 61,200 Total factory overhead cost $103,200 Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect…
Tat Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year. Variable Fixed Total budgeted overhead (at the denominator level of activity) Total applied overhead $ 432,000 $ 684,000 $ 410,400 $ 649,800 $ 456,000 $ 655,500 Total actual overhead The standard machine-hours allowed for the actual output during the year were 7,600. The actual machine-hours incurred were 7,500. 11 What was Taft's variable overhead efficiency variance? A. 2$ 21,600 Favorable B. $ 51,000 Unfavorable 6998 2$ 2$ $ 45,600 Unfavorable С. 5,400 Favorable D. E. None of the above 750 12 Hoover Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHS). Hoover's total applied factory overhead was $315,000 last year when the standard DLHS for the actual output were 30,000 hours. The standard variable factory…
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 12,000 hours for production: Variable overhead costs: Indirect factory labor $36,000 Power and light 9,120 Indirect materials 19,200 Total variable overhead cost $64,320 Fixed overhead costs: Supervisory salaries $50,160 Depreciation of plant and equipment 13,200 Insurance and property taxes 24,640 Total fixed overhead cost 88,000 Total factory overhead cost $152,320 Tannin has available 16,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead costs: Indirect factory labor $32,180 Power and light 8,210 Indirect…
The total factory overhead for Big Light Company is budgeted for the year at $1,204,000. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 11,800 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 12,200 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unit
A company manufactures small assemblies to order and has the following budgeted overheads for the year, based on normal activity levels. Department Budgeted Overheads Overhead Absorption Base Blanking Machining Welding Assembling 1,500 labour hours 7,500 22,500 9,000 5,000 2,500 machine hours 1,800 labour hours 1,000 labour hours Selling and Administrative Overheads are 20% of Factory Cost. An order for 250 assemblies type X 128 made as Batch 5931 incurred the following costs : Materials $ 5,702 Labour-128 hours Blanking Shop at $ 4.50/hour ; 452 hours Machining Shop at $ 5.0/hour ; 90 hours Welding Shop at $ 4.5/hour; 175 hours Assembly Shop at $ 3.6/hour. $ 525 was paid for the hire of special X-ray equipment for testing the welds. The time booking in the machine shop was 643 machine hours. Calculate the total cost of the batch, the unit cost and profit per assembly if the selling price was $ 100/assembly.
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 18,000 hours for production: Variable overhead cost: Indirect factory labor $43,200 Power and light 12,960 Indirect materials 28,800 Total variable overhead cost $ 84,960 Fixed overhead cost: Supervisory salaries $62,700 Depreciation of plant and equipment 16,500 Insurance and property taxes 30,800 Total fixed overhead cost 110,000 Total factory overhead cost $194,960 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost:…