Spates, Inc. manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required toproduce that output appear below:ExpectedProduction130130DirectLabor-HoursPer UnitTotalDirectLabor-HoursProduct H2Product E06.38195.3689Total direct labor-hours1,508The company's expected total manufacturing overhead is $267,968.If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your Intermedlate calculations to 2 declmalplaces.)Multiple Cholce$203.83 per unitS151.57 per unitS355.40 per unt< Prev5 of 10Next >92°F AQI 61pe here to searchDELL

OAR stands for Overhead absorption rate refers to the rate which is charged to the cost unit that is…

Answered: Total Direct Direct Labor- Hours…

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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11. Subject:- Accounting
Information about a company's two products Is found below. Direct Labor- Hours per Unit Annual Production 23,eee units 44, 000 units Product A 0.60 Product B 0.20 Additional Information about the company follows: a. Direct materlals per unit Is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requlres a special process that Is not requlred for Product B. d. The following activity cost pools are used by the company's ABC system. Estimated Expected Activity Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A Product B Total 24 16,065 $ 135,000 $ 226,000 85 68 153 4,5ee 13,800 4,500 22,600 8,800 Requlred: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required…
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Required: Budgeted Cost $ 120,900 Allocation Base Machine hours (MH) Budgeted Usage 140,000 Direct labor hours (DLH) 9,300 MH 2,800 DLH 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Machine hours per unit Direct labor hours per unit Voltage 2.0 MH 1.5 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Per Unit Voltage EasyRider Selling Price $ 273 182 Direct Materials $ 103 93 Direct Labor $ 50 15 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Complete this question by entering your answers…
Please help complete parts of question 1 1a. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production at is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) Total manufacturing overhead cost: Manufacturing overhead per unit it: 1b. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) Total manufacturing overhead cost: Manufacturing overhead per unit: 1c. If the selling price is $22 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round you answer to 2 decimal places.) 1d. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this leve production? (Do not round…
6
Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours $ 64.20 $ 17.60 Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) 1.4 DLHS 19,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost $50.40 $ 12.40 1 DLHs 69,000 units $1,854,640 95,600 DLHs Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional…
The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54Direct manufacturing labor 8Variable manufacturing overhead 11Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5Administrative salaries 12Total$115What are the period costs per unit associated with Product ORD203 ? Oa. $120 b. $50 c. $17© d $18
Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST. Direct material cost per unit of RST Total estimated manufacturing overhead Total cost per unit of RST Total estimated machine hours, Direct labor cost per unit of RST $ 19 $308,000 $ 84 154,000 MH 27 $
Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product A4 690 7.9 5,451 Product Q5 990 4.9 4,851 Total direct labor-hours 10,302 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product A4 Product Q5 Total Labor-related DLHs $ 167,558 5,451 4,851 10,302 Machine setups setups 15,050 1,250 1,150 2,400 Order size MHs 504,027 5,100 5,400 10,500 $ 686,635 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
narubhai
Using this information from Planters, Inc., what is the cost per unit under absorption costing? Round to the nearest penny, two decimal places. Planters, Inc data Cost Production Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Amount 10,348 units $248 293 103 1,008,619
Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Manufacturing overhead in the plant has three main functions: supervision, setup labor, and Incoming material Inspection. Data on manufacturing overhead for a representative quarter follow: $ 288,750 336,000 241,500 $ 866,250 Standard 14,000 a. Using current costing system b. Using proposed ABC system 50 $30 50 Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places. S S Answer is complete but not entirely correct. Premium 3,500 25 $64 75 Unit cost Standard 120.00 X S 117.67 X S…

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