The manager at Screaming Trees has been trying to calculate the portion of the company's overhead expenses that is fixed and the portion that is variable. Over the past twelve months, the number of yards of mulch processed was highest in July, when the totalmonthly overhead costs totaled $32,000 for 37,000 yards of mulch processed. The lowest number of yards of mulch processed in the last twelve months occurred in October, when total overhead costs were $26,000 for 26,000 yards of mulch processed. Whatwas the variable cost per yard?OA. $1.00O B. $1.83O C. $0.55O D. $0.86

Variable Cost: Variable cost refers to the costs that change due to the changes occurring in the…

Answered: The manager at Screaming Trees has been…

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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Similar questions

During a recent accounting period, Falcon Express’ shipping department processed 22 orders. Each order typically takes four hours to complete. However, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid $15 per hour, what would the company's non-value-added cost be?
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $29,800 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.90 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Estimated total machine-hours used Estimated total fixed manufacturing overhead Molding Fabrication 2,500 1,500 $ 16,800 $ 3.40 Estimated variable…
Stuart Corporation expects to incur indirect overhead costs of $102,000 per month and direct manufacturing costs of $13 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Required A Required B Complete this question by entering your answers in the tabs below. January February March 4,500 8,200 5,000 Required C Predetermined overhead rate $ Answer is complete but not entirely correct. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. April 6,300 4 X per unit Required A Required B >
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $29,800 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.90 per machine-hour. Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Estimated total machine-hours used Estimated total fixed manufacturing overhead Molding Fabrication 2,500 1,500 $ 16,800 $ 3.40 Estimated variable…
Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 40% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period. (Round number of units produced to the nearest whole number. Round your intermediate calculations and final answers to 2 decimal places. Any losses or reductions should be indicated by a minus sign.)a. How much total contribution margin will Andretti forgo if it closes the plant for two months?b. How much total fixed cost will the company avoid if it closes the plant for two months?c. What is the financial advantage…
Tech Solutions computes its predetermined overhead rate annually based on direct labor - hours. At the beginning of the year, it estimated 50,000 direct labor - hours would be required for the period's estimated level of client service. The company also estimated $ 225,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor - hour. The firm's actual overhead cost for the year was $238, 100 and its actual total direct labor was 53, 100 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available for this job: Direct materials $ 44, 850 Direct labor cost $ 28, 200 Direct labor - hours worked 200 Compute the total job cost for Xavier Company.
Walton Corporation estimated its overhead costs would be $23,400 per month except for January when it pays the $135,870 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $159,270 ($135,870 + $23,400). The company expected to use 7,500 direct labor hours per month except during July, August, and September when the company expected 9,800 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,750 units of product in each month except July, August, and September, in which it produced 4,900 units each month. Direct labor costs were $24.90 per unit, and direct materials costs were $11.10 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August. c. Determine…
Cavy Company estimates that the factory overhead for the following year will be $2,034,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 31,300 hours. The machine hours for the month of April for all of the jobs were 2,830. If the actual factory overhead for April totaled $180,455, determine the over- or underapplied amount for the month. Enter the amount as a positive number.
For the month of July, UP Payroll Services worked 3,000 hours for Dune Motors, 900 hours for Jake’s Charters, and 1,500 hours for Mission Hospital. UP bills clients at $128 an hour; its labor costs are $48 an hour. A total of 6,000 hours were worked in July with 600 hours not billable to clients. Overhead costs of $72,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 600 hours were not billable, some overhead was not assigned to jobs. UP had $48,000 in marketing and administrative costs. All transactions were on account. Required: a. What are the revenue and cost per client? b. Prepare an income statement for July.
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine - hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine - hours for the upcoming year at 22, 900 machine - hours. The estimated variable manufacturing overhead was $6.67 per machine - hour and the estimated total fixed manufacturing overhead was $ 665,932. The predetermined overhead rate for the recently completed year was closest to:
J&J Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of March, the company budgeted for 60 jobs, but the actual number of jobs turned out to be 70. Wages and salaries expense is a mixed cost. Supplies expense is a variable cost. Transportation expense is a fixed cost. Here is a report comparing the actual vs. budgeted revenues and costs for the month of March: What is the amount of Supplies Expense in the Flexible Budget?
Thomlin Company forecasts that total overhead for the current year will be $11,176,000 with 183,000 total machine hours. Year to date, the actual overhead is $7,700,000 and the actual machine hours are 97,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

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