Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to compl the miniatures. Next year's expected activities are shown in the following table: Direct labor hours. Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $2.40 per machine hour overhead rate for the Finishing department. Compute the budg manufacturing overhead cost for the Finishing department given the information shown in the table. O$189,600 $394,800 Molding 79,000 DLH 102,000 MH $244,800 Finishing 164,500 DLH 85,500MH

Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to compl the miniatures. Next year's expected activities are shown in the following table: Direct labor hours. Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $2.40 per machine hour overhead rate for the Finishing department. Compute the budg manufacturing overhead cost for the Finishing department given the information shown in the table. O$189,600 $394,800 Molding 79,000 DLH 102,000 MH $244,800 Finishing 164,500 DLH 85,500MH

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 8CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.
Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?
Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: Molding Finishing Direct labor hours 75,000 DLH 160,500 DLH Machine hours 98,000 MH 81,500 MH Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table.
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Assembly 248,888 DLH Finishing 154,000 DLH 68,000 MH 448,800 MH $440,000 Direct labor hours Machine hours Overhead costs Assume that Angler Industries allocates overhead using a plantvide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.90 machine hours in the Assembly Department, and 4.00 direct labor hours and 0.6 machine hours in the Finishing Department? Multiple Chaises O O O $21.50 $17.60 $2.00. $18.10 $ 677,680 $13.20.
50 Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours. Machine hours. # Tarnish Industries uses departmental overhead rates and is planning on a $4.10 per machine hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. 3 Multiple Choice O $307,500 * JL E C $ $658,050 $401,800 4 JO R F Molding 75,000 DLH 98,000 MH % V СЈС 5 T G A 40 Finishing 160,500 DLH 81,500 MH 6 Y H & Q Search 7 :) O L PAL P - { ctri + [ = prt sc ← ] J pause delete backspace home num 7 T shift
Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice O $15.60. O Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department? $3.40 Assembly 190,000 DLH 390,000 MH $16.10. $ 390,000 Finishing) 149,000 DLH: 95,550 MH $ 581,100
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Carib Tings & More does hand-crafted memorabilia for the tourism industry, in which each batch ofitems is a job. The company has a highly machine intensive production process, so it allocatesmanufacturing overhead based on machine hours. Carib Tings & More pre-determined overheadapplication rate for 2024 was computed from the following data: Total estimated factory overheadsTotal estimated machine hours $2,400,00040,000 At the end of May 2024, Carib Tings & More reported work in process inventory of $176,000.During June 2024, Carib Tings & More actually used 3,000 machine hours and recorded thefollowing transactions.i) Purchased $324,000 worth of materials on account. Separately, Carib Tings &More paid a $2,500 bill for freight in.ii) Manufacturing wages incurred $400,000iii) Materials requisitioned (includes $30,000 of indirect materials) $420,000iv) Assigned manufacturing wages, 85% direct labour, 15% indirect labourv) Depreciation expense on factory equipment…