Waterway Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annualbudgeting process, Waterway is analyzing the profitability of its two products. Part of this analysis involves estimating the amount ofoverhead to be assigned to each product line. The information shown below relates to overhead.Mobile Safes Walk-in SafesUnits planned for production20050Material moves per product line300200Purchase orders per product line450350Direct labor hours per product line8001,700(a)The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis ofdirect labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.)(1)One mobile safe+A$per unit(2)One walk-in safe$per uniteTextbook and MediaSave for Later Last saved 32 minutes ago.Attempts: 0 of 3 usedSubmit AnswerSaved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes.

Compute the overhead rate first using traditional costing.Overhead rate = Total overhead / Total…

Answered: Waterway Corporation manufactures…

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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The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication _______direct labor hours Assembly _______direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication Department rate $______per dlh Assembly Department rate $______per dlh c. Determine the factory overhead allocated per unit for each product using the department…
Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include: Variable indirect materials $ 4.75 per hammock Variable indirect labor $ 11.25 per hammock Other variable overhead $ 3.25 per hammock Salaries $ 50,000 per quarter Insurance $ 6,000 per quarter Depreciation $ 25,000 per quarter Prepare Bonita's manufacturing overhead budget for the fourth quarter.
The total factory overhead for Big Light Company is budgeted for the year at $1,703,240. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 17,300 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 17,500 units. Each desk lamp requires 2 hours of direct labor. a Determine the total number of budgeted direct labor hours for the year. direct labor hours b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. per direct labor hour c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. per unit per unit Night Lights Desk Lamps
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) 2,700 4,000 8,000 8,000 Small table lamps Desk lamps Activity Setups 9,150 15,250 44,400 44,400 Total Activity-Base Usage Budgeted Activity Cost 12,000 $102,000 24,400 129,320 77,700 310,800 Inspections Assembly (dlh) The total factory overhead to be allocated to desk lamps is Oa. $456,995 Ob. $228,498 Oc. $587,565 Od. $326,425
Sunland Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sunland is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead, Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (1) One mobile safe (2) Mobile Safes One walk-in safe 200 300 450 800 Walk-in Safes 435.2 50 The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) 200 350 1.700 per unit per unit
Oriole Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Oriole’s controller. The company applies overhead on the basis of machine hours. Annual Budget May Budget Variable manufacturing overhead $2,665,200 $240,000 Fixed manufacturing overhead $1,204,200 $100,350 Direct labor hours 48,600 4,050 Machine hours 222,100 20,000 During the month of May, Oriole used 4,220 direct labor hours and 21,820 machine hours. The flexible budget for the month allowed 4,300 direct labor hours and 21,330 machine hours. Actual fixed manufacturing overhead incurred was $109,200; variable manufacturing overhead incurred was $259,040.(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g.…
Cartwright Ltd. manufactures two models of saddles, the Jordan and the Shenandoah. The Jordan is a more basic model and sells for $900. The Shenandoah is a professional- model saddle and sells for $1,500. At the beginning of the year, the following budgeted data were available: Expected production (units) Machine time (hours) Direct materials unit cost Direct labour-hours Receiving (number of orders processed) Setups (number of setups) Direct labour average wage rate (per hour) Purchasing (number of requisitions) Inspection (% of units inspected) Maintenance hours Design and production support (hours) Jordan 15,000 2,000 $ 100 30,000 150 15 20 50 10% $ 450 100 The following are the budgeted indirect costs for the year. Equipment maintenance Utilities Purchasing materials Indirect materials Receiving goods Factory rental Setting up equipment Inspection costs Design Production support Facility-level costs are allocated on the basis of machine-hours. Shenandoah 5,000 2,000 $ 200 30,000…
Crane Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Crane is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line Mobile Safes 200 300 450 800 Walk-in Safes 50 200 350 1,700
2 Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: 00:56:51 Mc τ Graw Hill @ 2 W S Direct labor hours Machine hours X Tarnish Industries uses departmental overhead rates and is planning on a $2.40 per machine hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. Multiple Choice # 3 O $394,800 O * E $189,600 D C $244,800 $ JOI 4 ● 4 R F % V Molding 79,000 DLH 102,000 MH 5 T G Lo 40 6 Finishing 164,500 DLH 85,500 MH Y & H 4 Q Search ► 11 ) O O L alt fi P - 112 { ? ctri + [ = prt sc ] pause delete backspace home num enter H
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 120,000 # of setups 120 setups Materials handling 104,400 # of barrels 8,700 barrels Quality control 264,000 # of inspections 1,100 inspections Other overhead cost 144,000 # of machine hours 12,000 machine hours Total overhead $ 632,400 A current product order has the following requirements: Machine setups 8 setups Materials handling 606 barrels Quality inspections 80 inspections Machine hours 830 machine hours Direct labor hour 336 hours What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct…
D
Cabinare Inc. Is one of the largest manufacturers of office furniture in the United States. In Grand Rapids Michigan and assembles filing cabinets in a assembly Department. Assume following nformation for the assembly departments: Direct labor per filing cabinets 30 min Supervisor salaries $132,000 per month Depreciation $24,000 per month Direct labor rate $21 per hr. Prepare a flexible budget for 13,000,16,000,and 20,000 filing cabinets for the month ending February 28 in assembly departments similar to exhibit 5 Round your final answer to the whole dollar, if required.

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