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 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...

See similar textbooks

Similar questions

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?
hardik
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?
Please help me with show all calculation thanku
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company’s human resources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected information about the two divisions: Number of Employees Wage and Salary Expense ($000) Northern 2,640 $ 210,800 Southern 2,160 129,200 Required: Determine the cost allocation if $12.5 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.
Please help out with the question below. Thanks! Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are:   Direct materials                            $4.00   Direct labor                                    6.00   Variable overhead                          3.00   Fixed overhead                              1.00   Marketingfixed                             7.00   Marketing/distributionvariable       3.60Current monthly sales are 190,000 units at $30.00 each. Santo, Inc., has contacted Zephram Corporation about purchasing 20,000 units at $24.00 each. Assume that all of Zephram's costs would be at the same levels and rates as above. If Zephram accepts this offer, it will have to reject some regular business from regular customers so as not to exceed capacity. If they accept the special order, how much will operating income change?
Office Products Inc. manufactures and sells various high-tech office automation products. Two divisions of Office Products Inc. are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a “super chip,” that can be used by both the Computer Division and other external customers. The following information is available on this month’s operations in the Computer Chip Division:             Selling price per chip                      P50     Monthly capacity                10,000 chips             Variable costs per chip                  P20     External sales                       6,000 chips             Fixed production costs            P60,000     Internal sales            0          chips             Fixed SG&A costs                   P90,000             Presently the Computer Division purchases no chips from the Computer Chips Division, but instead pays P45 to an external supplier for the 4,000 chips it needs each month.…
Office Products Inc. manufactures and sells various high-tech office automation products. Two divisions of Office Products Inc. are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a “super chip,” that can be used by both the Computer Division and other external customers. The following information is available on this month’s operations in the Computer Chip Division:             Selling price per chip                      P50     Monthly capacity                10,000 chips             Variable costs per chip                  P20     External sales                       6,000 chips             Fixed production costs            P60,000     Internal sales            0          chips             Fixed SG&A costs                   P90,000             Presently the Computer Division purchases no chips from the Computer Chips Division, but instead pays P45 to an external supplier for the 4,000 chips it needs each month. 1.…
The receiving department of a firm performs 12,000 hours of uploading work and costs $60,000 per year. What is the activity rate for the receiving department? a.$4.50 per hour b.$14 per hour c.$4 per hour d.$5 per hour e.Cannot be determined from this information.
i need the answer quickly
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $16,000,000 a year. You have the following selected information about the two divisions: Northern Southern Number of Employees 2,420 1,980 Fixed Variable Total Required: Determine the cost allocation if $10.5 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands. Wage and Salary Expense ($000) $ 186,000 114,000 Northern Southern