Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Plantwide rate Overhead cost per unit: Scientific Product-Related Data Business Business Scientific 74,000 $239,000 99,800 49,500 100 2,000 2,250 Department Data Department 1 Department 2 77,300 139,720 217,020 23,000 381,800 4 404,800 $232,500 170,000 260,000 208,000 $870,500 740,000 $2,390,000 998,000 495,000 150 3,000 9,000 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor h per direct labor hour per unit per unit 22,500 858,280 880,780 26,500 113,200 139,700 $232,500 170,000 133,000 219,500 $755,000

Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator Total Overhead costs: Setup costs Inspection costs Power Maintenance Total Plantwide rate Overhead cost per unit: Scientific Product-Related Data Business Business Scientific 74,000 $239,000 99,800 49,500 100 2,000 2,250 Department Data Department 1 Department 2 77,300 139,720 217,020 23,000 381,800 4 404,800 $232,500 170,000 260,000 208,000 $870,500 740,000 $2,390,000 998,000 495,000 150 3,000 9,000 Required: 1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor h per direct labor hour per unit per unit 22,500 858,280 880,780 26,500 113,200 139,700 $232,500 170,000 133,000 219,500 $755,000

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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3 Kamili Company has the following three manufacturing overhead cost drivers. Cost Driver Design changes Machine setups Electricity usage Level of Activity $2,680 $3,080 $3,260 $1,550 $3,580 $2,860 100 changes per year 2,000 setups per year 12,000 kilowatt-hours per year Overhead Cost $ 5,000 18,000 36,000 Kamili Company started and completed work on 25 different jobs during the year. One of these jobs was Job #781. Job #781 required 16 design changes, 40 machine setups, and 700 kilowatt-hours of electricity. How much manufacturing overhead should be allocated to Job #781? Note: Kamili uses activity-based costing.
Watson's Computer Company uses ABC to account for its manufacturing process. Activities Indirect activitybudget Allocation base (cost driver) Materials handling $55,000 Based on number of parts Machine setup $32,000 Based on number of setups Assembling $9820 Based on number of parts Packaging $15,100 Based on number of finished units Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups.The allocation rate for materials handling will be (Round all answers to two decimal places.) Question 16 options: $5.00 $6.48 $8.40 $23.61
Problem 1 Brabensky Company produces a product in two departments: (1) Assembly and (2) Painting. The company uses a process cost accounting system. Purchased raw materials for $90,000 on account. Raw materials requisitioned for production were: Direct materials Assembly department $77,000 Factory labor used: Assembly department $34,000 Painting department 18,000 Manufacturing overhead is applied to the product based on machine hours used in each department: Assembly department—320 machine hours at $40 per machine hour. Painting department—120 machine hours at $15 per machine hour. Units costing $86,000 were completed in the Painting Department and were transferred to the Finished Good. Finished goods costing $70,000 were sold on cash for $102,000. Instructions Prepare the journal…
Cornerstones of Cost Management 4th Ed. - Chapter 4 Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has the following data for the past year: Actual overhead $760,000 Sales $3,500,000 Materials used $1,100,000 Applied Overhead (in each account): Work in process $72,000 Finished goods 216,000 Cost of goods sold 432,000 Required: 1. Calculate the overhead variance for the year and label it under- or overapplied. Overhead variance: $ ________ (underpaid or overpaid) 2. Assuming the variance is not material, the following closing entry would be made: Debit _________ for $___________ and credit _______ for $ __________ 3. If the overhead variance is material, indicate how much of the variance would be __________ to each of the following accounts (if an amount is zero, enter "0"): Work in…
Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVS. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Totals Department manager salaries Supplies used Utilities Rent Totals Snowmobile $ 19,810 10,700 ▸ 4,600 3,630 Controllable Costs Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted $ 390 6,000 $ 45,130 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. 0 $ ATV $ 27,800 20,800 5,500 Actual 930 570 6,600 $ 62,200 Actual Snowmobile $ 19,720 10,990 4,700 3,470 360 5,600 $ 44,840 Over…
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Quillen Company manufactures a product in a factory that has two production departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Direct costs Normal activity: Number of employees Maintenance hours Required: 1 2 Support Departments S1 S2 Cutting $180 000 $150 000 $122 000 1 200 Production Departments 30 63 16 000 Sewing $90 500 147 4 000 Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios - one for Cutting and the other for Sewing.) Allocate the support department costs to the production departments by using the direct method.