View Policies Current Attempt in Progress Foxx Company incurs $440000 overhead costs each year in its three main departments, setup ($20000), machining ($295000), and packing ($125000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours Orders packed 1000 4000 350 150 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year? O $88000 o $220000 e $132000 $147500

View Policies Current Attempt in Progress Foxx Company incurs $440000 overhead costs each year in its three main departments, setup ($20000), machining ($295000), and packing ($125000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours Orders packed 1000 4000 350 150 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year? O $88000 o $220000 e $132000 $147500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 11E: Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has...

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Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has four mixing lines that mix various powdered chemicals together according to specified formulas. Each line can produce up to 5,000 barrels per year. Each line has one supervisor who is paid 34,000 per year. Depreciation on equipment averages 16,000 per year. Direct materials and power cost about 4.50 per unit. Required: 1. Prepare a graph for each of these three costs: equipment depreciation, supervisors wages, and direct materials and power. Use the vertical axis for cost and the horizontal axis for units (barrels). Assume that sales range from 0 to 20,000 units. 2. Assume that the normal operating range for the company is 16,000 to 19,000 units per year. How would you classify each of the three types of cost?
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Concord Co. estimates that it will incur $857500 of overhead costs each year in its three main departments, machining ($490000). inspections ($245000) and packing ($122500). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Concord's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X 1000 $296827 O $416500 100 350 1700 Product Y 3000 500 650 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X?
Sheffield Co. estimates that it will incur $1290000 of overhead costs each year in its three main departments, machining ($750000), inspections ($360000) and packing ($180000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Sheffield's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X $645000 O $446538 $642000 O $310500 1000 100 350 1700 Product Y 3000 500 650 1800 If ABC is used, how much overhead will be assigned to Product X?
Crane Co. estimates that it will incur $805000 of overhead costs each year in its three main departments, machining ($460000), inspections ($230000) and packing ($115000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Crane's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X 1000 100 350 1700 Product Y 3000 500 650 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X?
Watts Corporation produces various products used in the construction industry. The Plumbing Division produces and sells 100,000 copper fittings each month. Relevant information for last month follows: Total sales (all external) $250,000 Expenses (all on a unit base): Variable manufacturing $0.50 Fixed manufacturing .25 Variable selling .30 Fixed selling .40 Variable G&A .15 Fixed G&A .50 Total $2.10 Top-level managers are trying to determine how a transfer price can be set on a transfer of 10,000 of the copper fittings from the Plumbing Division to the Bathroom Products Division. A transfer price based on full production cost would be set at ___________ per unit.
Windsor Co. incur $1067500 of overhead costs each year in its three main departments, machining ($610000), inspections ($305000) and packing ($152500). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year?
Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year: Connections Time on Network (hours) Commercial 51,000 121,000 Retail 61,000 151,000 Consumer 108,000 378,000 What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the time on the network? Multiple Choice $4.40. $3.29. $23.64. $19.36.
Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year? $ 245000 $ 490000 $ 343000 $ 476000
26. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is as follows: brs Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours CA 650 350 022 1,700 1,800 (D Using ABC, how much overhead is assigned to Product X this year? A) $363,462 B) $252,500 C) $525,000 D) $510,000 000.REIR 00 842 SETS dack hcts 0.12 27. One of Clay Company's activity cost pools is machine setups, with estimated overhead of $360,000. Clay produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A) $144,000 B) $360,000 C) $216,000 D) $180,000 iong 000.1 DOI 022 001 28. Identifying and classifying…
One division of Heartwood Cabinets anticipates the following costs for the next year: Cost Budget Facilities rent $ 72,000 Utilities $ 28,000 Taxes $ 17,000 Wages for production workers $ 555,000 Management salaries and benefits $ 320,000 Wages for shipping and handling workers $ 256,000 Direct materials for cabinets $ 350,000 Supplies $ 38,000 Indirect materials $ 120,000 Equipment rental $ 32,000 Advertising $ 25,000 Repairs and maintenance $ 36,000 Travel $ 95,000 The company uses machine hours as the sole cost driver of variable overhead. Based on prior years, Heartwood estimates it will take 0.30 of machine hours per cabinet produced. Budgeted output is 75,000 cabinets. Actual output is 73,000 cabinets and it really takes 0.40 machine hours to produce one cabinet. Actual variable overhead costs are $474,500. Actual fixed overhead costs are $600,000. Required: Calculate budgeted variable overhead for the year. Calculate the variable overhead…