cesThe Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for theupcoming fiscal year:1st Quarter 2nd Quarter10, 1009,1003rd Quarter11,100Units to be producedEach unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $81,000 perquarter. The only noncash element of manufacturing overhead is depreciation, which is $21,000 per quarter.Required:1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole.2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturingoverhead for each quarter of the upcoming fiscal year and for the year as a whole.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter ofthe the upcoming fiscal year and for the year as a whole.Total manufacturing overheadCash disbursements for manufacturing overhead1st Quarter4th Quarter12, 100< Req 1< Prev2nd Quarter5 of 53rd QuarterReq 2 and 3=4th QuarterNext >Year

Manufacturing overhead : These are the indirect charges incurred in connection with production in…

Answered: The Production Department of Hruska…

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

Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 15,000 units at $55.00 each. Each unit requires 4 pounds of direct materials at $2.70 per pound. Each unit requires 1.5 hours of direct labor at $18.00 per hour. Manufacturing overhead is $3.70 per unit. Beginning direct materials inventory is $4,200.00. Ending direct materials inventory is $5,150.00. Selling and administrative costs totaled $136,920. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement.
Sapphire Computer Company has been purchasing carrying cases for its portable comput-ers at a purchase price of $89 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to be as follows: Direct materials Direct labor Factory overhead (40% of direct labor) Total cost per unit $53.00 26.00 10.40 $89.40 If Sapphire Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Alternative 2). b. On the basis of the data presented, would it be advisab
Hijinx Company projected the following overhead costs and cost drivers: Overhead Item Expected Costs Cost Driver Expected Quantity Setup costs $121,500 Number of setups 50 Ordering costs 40,500 Number of orders 30 Maintenance 174,000 Machine-hours 600 Power 27,000 Kilowatt-hours 600 Total overhead cost 363,000 Direct Labor Hours 500 Hijinx contracted for two jobs, both of which were completed during the year. Production managers reported the following data in relation to these jobs: Job 1 Job 2 Direct materials $170,000 $120,000 Direct labor $14,000 $11,000 Direct labor-hours 300 220 Number of setups 25 23 Number of orders 20 13 Machine-hours 410 200 Kilowatt-hours 380 240 If Hijinx uses a company-wide predetermined overhead rate and the allocation basis is machine hour. How much overhead costs should be assigned to Job 1. Show the calculation steps and…
The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for camival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below: Variable costs that vary with number of units produced Direct materials $440,000 Direct manufacturing labor 495,000 Variable costs (for setups, materials handling, quality control, etc.) that vary with number of batches, 220 batches * $500 per batch 110,000 ⚫ Fixed Costs Fixed manufacturing costs Fixed marketing costs Total costs 300,000 200,000 $1,545,000 Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company's regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000 pieces). The…
The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below:  Variable costs that vary with number of units produced Direct materials $ 440,000 Direct manufacturing labor 495,000 Variable costs (for setups, materials handling, quality control, etc.) that vary with number of batches, 220 batches * $500 per batch 110,000  Fixed Costs Fixed manufacturing costs 300,000 Fixed marketing costs 200,000 Total costs $1,545,000 Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company’s regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000…
Please help me. Thankyou.
Beto Company pays $3.50 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $2.70 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? (a) Make or Buy Analysis Make Buy Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference |(b) Company should:
The controller for Tender Bird Poultry, Inc., estimates that the company’s fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $0.20 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold. 1. Calculate the predetermined overhead rate under each of the following output predictions: (Round your answers to 2 decimal places.) 200,000 - 300,000 - 400,000 -
Vikram
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,600 machine hours per year, which represents 25,800 units of output. Annual budgeted fixed factory overhead costs are $258,000 and the budgeted variable factory overhead cost rate is $2.50 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,500 units, which took 40,600 machine hours. Actual fixed factory overhead costs for the year amounted to $251,600 while the actual variable overhead cost per unit was $2.40. Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the…
Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, eg. 2.75.) Predetermined Overhead Rate (b) eTextbook and Media Compute the applied overhead for Crane for the year. Overhead Applied Variable $ 2.50 Fixed Attempts: 1 of 3 used
A company manufactures a single product, that has a standard cost per as below Direct materials Direct Labour Fixed overheads Per unit (15 metres @K6/metre) 90 (5 hours @K8/hour) 40 Variable Overheads (5hours @ K4/hour) 20 (5 hours @ K2/hour) 10 The standard selling price is K195 K The monthly budget production and sales was 1,300 units. Actual figures for the month of January 2019 are as follows: Sales Production Direct materials Direct wages Variable overheads Fixed overheads Required: 1,400 units @ K200 each. 1,500 Units 23,500 metres @ K6.50 per metre 7,000 hours @ K7.80 per hour K25,600 K14,200 Calculate the following variances: (a) Material price (b) Material usage (c) Labour rate (d) Labour efficiency (e) Variable overhead expenditure (f) Variable overhead efficiency (g) Fixed overhead volume (h) Fixed overhead expenditure (i) Sales Price (j) Sales Volume

SEE MORE QUESTIONS

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