Vaughn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection > Cost Driver Orders Setups Machine hours Parts Inspections. Est. Overhead $ 105000 338500 O $7014 per order. O $1.05 per direct labor hour. O $210 per order. O $0.11 per part. 1433500 1300000 330000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is 500 inspections

Vaughn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection > Cost Driver Orders Setups Machine hours Parts Inspections. Est. Overhead $ 105000 338500 O $7014 per order. O $1.05 per direct labor hour. O $210 per order. O $0.11 per part. 1433500 1300000 330000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is 500 inspections

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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How do I determine the cost of one unit of SW 100 and SG 150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Round t two decimal places, if necessary.
Acme Company manufactures and sells two products, Product A and Product B. Acme's total manufacturing overhead cost is $168,000, and Acme applies overhead to jobs using three activity-based overhead rates, computed as follows: Activity Cost pool ? ? Machine hours Allocation base Number of setups Setups Machining Packaging .$15,000 Units packed O $33.60 O $31.20 O $36.60 O $37.20 Units of allocation base Product A Product B 20 setups 20 setups 1,000 hours 150 units ? 350 units Allocation rate $450 per setup $27 per MH ? If Acme decides to use a plantwide overhead rate with machine hours as the allocation base, what would be its plantwide overhead rate?
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Fast Company has established the following overhead cost pools and cost drivers for the month of May:
IronBallon Co.makes two beverages: ZIPA and Zager. The following data is summarized: Cost ZIPA Zager Direct materials cost per unit $490 $2,010 Direct labor cost per unit $560 $120 Indirect manufacturing cost per unit ? ? Indirect manufacturing cost information includes the following: Activity Predetermined Overhead Allocation Rate ZIPA Zager Setup $1,210.00 45 Per setup 85 Per setup Machine maintenance $17.00 1,210 Per MHr 3,740 Per MHr IronBallon Co. plans to produce 290 units of each product.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the ABC indirect manufacturing cost per unit for each product. ZIPA Predetermined Overhead Allocation Rate X Actual Quantity of the Allocation Base Used = Actual Manufacturing Overhead Cost Setup X = Machine Maintenance X = Total Estimated Overhead Costs Number of products Manufacturing overhead…
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable-overhead rate per hour: $7.30 Standard fixed-overhead rate per hour: $12.60 Planned activity during the period: 20,000 machine hours Actual production: 12,700 finished units Machine-hour standard: Two completed units per machine hour Actual variable overhead: $164,500 Actual total overhead: $462,950O Actual machine hours worked: 23,500 Required: 1. Calculate the budgeted fixed overhead for the year. 2. Compute the variable-overhead spending variance. 3. Calculate the company's fixed-overhead volume variance. 4-a. Did Maxwell spend more or less than anticipated for fixed overhead? 4-b. What was the difference in actual and anticipated overhead? 5. Was variable overhead underapplied or overapplied during the year? By how much? Complete this question by entering your answers in…
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56.000 machine-hours would be required for the period's estimated level of production. It also estimated $1,060,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours During the year, the company had no beginning or…
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Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 85000 500 orders Machine Setup Setups 265500 450 setups Machining Machine hours 1412500 125000 MH Assembly Parts 1130000 1000000 parts Inspection Inspections 265000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $ 0.09 per part. $ 170 per order. $ 6316 per order. $ 0.85 per direct labor hour.
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 55,000 machine-hours would be required for the period's estimated level of production. It also estimated $960,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 15,000 Job C-200 Direct…