The Set Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the comingbudget yearBudgeted costs of operating the materials laboratory for 100.000 to200 000 technician hours per yearFixed costs per yearVariable costsBudgeted long-run usage in hours per yearLarge Plane DepartmentSmail Plane Department$8,000,000OA $167B: $95OC. $136OD $117$73 per technician hour80.000 technician hours120,000 technician hoursBudgeted amounts are used to calculate the allocation ratesActual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technican hours If a single-rate cost-allocation method is used what isthe allocation rate per hour used? (Round the final answer to the nearest dollar)

It is the base rate using which the costs are allocated to a particular product or job. The…

The Set Aircratt Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year Budgeted costs of operating the materials laboratory for 100,000 to 200.000 technician hours per year Fixed costs per year Variable costs $8,000,000 OA $167 B: $95 OC. $136 OD. 5117 $73 per technician hour Budgeled long-run usage in hours per year Large Plane Department Smail Plane Department Budgeted amounts are used to calculate the allocation rates Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technician hours. If a single-rate cost-allocation method is used what is the allocation rate per hour used? (Round the final answer to the nearest dollar) 80.000 technician hours 120.000 technician hours

The Set Aircratt Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year Budgeted costs of operating the materials laboratory for 100,000 to 200.000 technician hours per year Fixed costs per year Variable costs $8,000,000 OA $167 B: $95 OC. $136 OD. 5117 $73 per technician hour Budgeled long-run usage in hours per year Large Plane Department Smail Plane Department Budgeted amounts are used to calculate the allocation rates Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technician hours. If a single-rate cost-allocation method is used what is the allocation rate per hour used? (Round the final answer to the nearest dollar) 80.000 technician hours 120.000 technician hours

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

Elevator Co. makes two product models, A and B, and provides both installation and inspection services for its customers. Budgeted information is as follows: Installation Inspection Total Budgeted overhead 300,000 210,000 510,000 Budgeted labor hours 2,000 3,000 5,000 Product A Product B Total Direct labor hours per unit: 2.0 1.5 5,000 Installation 1.0 0.5 2,000 Inspection 1.0 1.0 3,000 Units 1,000 2,000 3,000 The company uses a departmental method to allocate overhead in each of the two cost pools - installation and inspection. How much overhead per unit is allocated to product B if the company uses direct labor hours as the allocation base? Choose any of the answer below. A. 145 B. 105 C. 110 D. 225
The Shoe Factory produces two types of shoes: Walking and Running. The following budgeted information is available: Walking Running 10,000 12,000 $100 $150 $140,000 $45,000 Units produced and sold Price per unit Direct material costs Direct labor costs Production runs Machine hours 1,800 Total overhead costs are $1,910,000. The firm estimates these overhead costs consist of the following activities and has selected the following cost drivers for these activities: 50 400 $120,000 $31,400 150 Activity Cost Production setups $810,000 $1,100,000 Machine time Assume all actual costs were equal to budgeted costs. a. What is the total cost for Walking shoes if overhead is allocated based on direct labor costs? b. What is the overhead allocation for Walking shoes if overhead is allocated using activity-based costing? c. Are the firm's total profits (including both shoe types) higher, lower, or the same if overhead is assigned using direct labor costs instead of activity-based costing? Justify…
2 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: 00:56:51 Mc τ Graw Hill @ 2 W S Direct labor hours Machine hours X Tarnish Industries uses departmental overhead rates and is planning on a $2.40 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. Multiple Choice # 3 O $394,800 O * E $189,600 D C $244,800 $ JOI 4 ● 4 R F % V Molding 79,000 DLH 102,000 MH 5 T G Lo 40 6 Finishing 164,500 DLH 85,500 MH Y & H 4 Q Search ► 11 ) O O L alt fi P - 112 { ? ctri + [ = prt sc ] pause delete backspace home num enter H
Stewart Company, a recent entrant to the market, manufacturers a popular robotic toy. There are two production departments-Assembly and Finishing. Selected budgeted and actual data are below. Assembly $276,000 $343,200 80,000 1,300 Budgeted overhead Finishing $288,000 Actual overhead $198,000 Expected direct labor hours Expected machine hours 24,960 120,000 During the year, 10,000 units of the toy were produced and 9,700 units were sold. Actual data related to this production are below. Direct materials cost $540,012 $48,600 Direct labor cost Direct labor hours used: Assembly Finishing Machine hours used: 82,560 26,880 Assembly Finishing 1,680 130,940 Stewart uses departmental overhead rates-Assembly is based on direct labor hours and Finishing is based on machine hours. If necessary, round final answers to 2 decimal places. Required: 1. Compute the departmental overhead rates for a) Assembly and b) Finishing. 2. Using the departmental rates, compute the overhead costs assigned to…
Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities. Activity Material handling Machining Inspections Total Plant-wide MOH rate Material handling Budgeted Cost $50,000 100,000 36,000 4,000 Machining Inspections $ (a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.) (b) Calculate activity rates for each key activity. $ $186,000 $ SA Budgeted Quantity of Cost Driver $ 2,000 10,000 material moves Activity rate machine hours inspections /machine hour /material move /machine hour /inspection
The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility for 400,000 to 600,000 copies: Fixed costs per year $64,000 Variable costs 5 cents (0.05) per copy Budgeted long-run usage in copies per year: Marketing Department 90,000 copies Operations Department 310,000 copies The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying…
The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year: Budgeted costs of Copy Support Department are: Fixed costs per year $70,000 per year Variable costs $0.02 per copy The operating departments have estimated their usage as follows: Department A 120,000 copies Department B 480,000 copies Actual usage for the year was: Department A 150,000 copies Department B 450,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will…
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,030,000 pages Budgeted usage: Software Development 1,630,000 pages Training 3,333,000 pages Management 2,127,000 pages Cost equation $310,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year? Multiple Choice $84,670. $86,790. $86,275. $135,600.
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 50,000 units. Per Unit Total Direct materials $50 Direct labor 26 Variable manufacturing overhead 20 Fixed manufacturing overhead $600,000 Variable selling and administrative expenses 19 Fixed selling and administrative expenses 400,000 Lovell Computer Parts management requests that the total unit cost be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of $1,000,000. Instructions (Round all calculations to two decimal places.) Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 25% on this new component. Assuming that the volume is 40,000…
Jackson Company manufactures computer keyboards. The budgeted sales price is $60 per keyboard, the variable costs are $28 per keyboard, and budgeted fixed costs are $13,000. What is the budgeted operating income for 2,000 keyboards? OA. $58,000 OB. $51,000 OC. $67,000 OD. $64,000
1. Assume that George Mason Medical Center has investments in a Building Replacement Fund with the following balances as of July 15, 2022 listed by category. The Investment Committee of the Board has approved a recommendation to reallocate these funds, and to include for the first-time common stocks from non-US companies. Assume that the portfolio will be rebalanced on August 1, 2022, to equal the Board's targeted desired allocation percentages. George Mason Medical Center Recommended Asset Allocation for Building Replacement Fund Rebalancing of Investment Portfolio as of July 15, 2022 Investment Description Cash and Cash Equivalents Fixed Income - Domestic Bonds Fixed Income - International Bonds Equities Large Cap Growth Equities - Large Cap Value Equities- Mid/Small Cap Growth Equities - Mid/Small Cap Value Equities International Total S Balance on 7/15/2022 12,000,000 32,000,000 10,000,000 13,000,000 25,000,000 11,000,000 12,000,000 S 115.000.000 Current Allocation % 10.4% 27.8%…
You are in charge of the following cost Budgeted production in units: 10,000 Budgeted Cost: Indirect Materials Indirect Labor Utilities Depreciation Property Taxes Supervision 5 250,000 $ 260,000 $ 190,000 $ 280,000 70,000 50,000 S 1,100,000 Demand has increased 12,000 Actual Cost Indirect Materials $ 295,000 $ 312,000 5 225,000 S 280,000 70,000 50,000 5 1,232,000 Indirect Labor Utilities Depreciation Property Taxes Supervision Your manager put the following table together: Budget Actual Variance production in units: 10,000 12,000 Frfavorable U-Unfavcrable Budgeted Cost: Indirect Materials Indirect Labor $ 295,000 S 312,000 S 225,000 S 280,000 S 70,000 5 50.000 $1,232.000 $ 45,000 $ 52,000 $ 35,000 Utilities Depreciation Property Taxes Supervision 250,000 S 260,000 S 190,000 S 280,000 70,000 %24 50,000 S 1,100,000 S 132,000 Requirement: Looking at the table, he is very dissatisfied with your performance. Should he fire you today? Please explain. Show calculations where necessary.