Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's records reveal the following per-unit costs for direct materials and direct labor: Product A Product B Production volume (units) Direct materials 5,000 $57 2,000 $63 (ID#80160) Direct labor: $20 2 hours at $10/hour 5 hours at $10/hour $50 FBGNPU422's accountants are thinking about a shift to activity-based costing and they collected the following MOH data: Expected Activity Product B Activity cost driver Number of setups Direct labor hours Product A Activity Cost Pool Setups General factory Estimated OH Cost $420,000 $2,020,000 $120,000 80 40 10,000 2,000 10,000 1,000 Machine hours hine rocessing Q.) Assuming that FBGNPU422's actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing? A.) $1

Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's records reveal the following per-unit costs for direct materials and direct labor: Product A Product B Production volume (units) Direct materials 5,000 $57 2,000 $63 (ID#80160) Direct labor: $20 2 hours at $10/hour 5 hours at $10/hour $50 FBGNPU422's accountants are thinking about a shift to activity-based costing and they collected the following MOH data: Expected Activity Product B Activity cost driver Number of setups Direct labor hours Product A Activity Cost Pool Setups General factory Estimated OH Cost $420,000 $2,020,000 $120,000 80 40 10,000 2,000 10,000 1,000 Machine hours hine rocessing Q.) Assuming that FBGNPU422's actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing? A.) $1

Name: Two products are manufactured by FBGNPU422 Corp.FBGNPU422 uses conven
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Description: Two products are manufactured by FBGNPU422 Corp.FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as theallocation base.FBGNPU422's records reveal the following per-unit costs for direc

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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A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $96,443 and the cost drivers for Product 1 is 200 and 500 for Product 2. The assembling activity pool has estimated costs of $69,074 and the cost drivers for Product 1 is 350 and 275 for Product 2. Direct labor hours for Product 1 is 353 and 231 for Product 2. What is the total manufacturing overhead rate to be used under traditional cost accounting? Round your final answer to the nearest whole dollar and do not write a dollar sign.
Care Company uses job costing and has assembled the following cost data for the production and assembly of item X: (Click the icon to view the cost data.) Based on the above cost data, the manufacturing overhead for item X is A. $1,590 underallocated. B. $350 overallocated. C. $350 underallocated. D. $1,590 overallocated. Cost Data Direct manufacturing labor wages Direct material used Indirect manufacturing labor Utilities Fire insurance Manufacturing overhead applied Indirect materials Depreciation on equipment $ 36,000 100,000 3,800 450 490 10,000 6,500 350 X
The TLX-26383 company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $ 90,000 of manufacturing overhead and an estimated allocation base of $60,000 in direct labor cost. The company has provided the following data: Beginning Ending $ 11,000 Raw Materials Inventory (all direct) Work in Process Inventory $ 28,000 $41,000 $ 35,000 Finished Goods Inventory $ 73,000 $ 64,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) Direct labor cost Manufacturing overhead cost $130,000 $120,000 $110,000 Suppose the company closes out any under- or over-applied overhead cost to Cost of Goods Sold. How much was the company's adjusted Cost of Goods Sold? Multiple Choice О $ 453,000 О $462,000 ○ $447,000 О $ 392,000 $532,000
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Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 43,000 9,200 63,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 57,000 18,600 34,300 $ 183,000 150,000 18,000 34,500 98,500 Exercise 15-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2, P3, P4 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the…
The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of rent and utilities allocated to Dept. 2 using activity-based costing. Direct LaborHours MachineHours Operating Dept. 1 864 9,300 Operating Dept. 2 2,016 6,200 Totals 2,880 15,500 Factory overhead costs Rent and utilities $ 20,700 Indirect labor 16,300 Depreciation – Equipment 13,000 Total factory overhead $ 50,000
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Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500: Direct materials $ 210 Direct labor $ 165 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 80 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
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The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 2 using activity-based costing. Direct Labor Hours Machine Hours Operating Dept. 1 1,020 9,600 Operating Dept. 2 2,380 6,400 Totals 3,400 16,000 Factory overhead costs Rent and utilities $ 22,900 Indirect labor 18,500 Depreciation - Equipment 15,600 Total factory overhead $ 57,000