What would be the selling price per unit if the spoilage loss is common to Job AAA and the company maintains a 40% mark-up on cost? * X Company's Job AAA manufactured 12,000 units that were completed in April at unit costs presented as follows: Direct materials Р300 270 Direct labor Factory overhead (excluding allowance of P15

What would be the selling price per unit if the spoilage loss is common to Job AAA and the company maintains a 40% mark-up on cost? * X Company's Job AAA manufactured 12,000 units that were completed in April at unit costs presented as follows: Direct materials Р300 270 Direct labor Factory overhead (excluding allowance of P15

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 22E: CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building...

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York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
Compute the total job cost for each of the following scenarios: a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled 5,000 and that the direct labor cost totaled 3,200. b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is 10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, and the number of direct labor hours totaled 250. c. If the machine hour method is used in applying factory overhead and the predetermined rate is 12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, the direct labor hours were 250 hours, and the machine hours were 295 hours.
CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building and site is different, requiring amounts and types of supplies and labor for each job. CleanCom estimated the following for the year: During the year, the following actual amounts were experienced: If CleanCom uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the cost of cleaning a construction site that takes 140 of direct materials and 21 direct labor hours? a. 455 b. 508 c. 648 d. 644
ABC Company Job 101 for the manufacture of 2,200 coats, which was completed during October at the unit costs presented below. Final inspection of Job 101 disclosed 200 spoiled coats which were sold to a jobber for P8,000. Direct materials - P20; Direct labor - P18; Factory overhead (includes an allowance of P1 for spoiled work)-P18. Assume that spoilage loss is charged to all production during October. What would be the unit cost for the good coats produced on Job 101?
Blue Co.'s Job 405 for the manufacture of 2,200 wagons was completed during August at the unit costs presented below. Direct materials $24 Direct labor 18 Factory overhead 14 $56 Final inspection of Job 405 disclosed 200 spoiled wagons that were sold to a jobber for $6,000. Assume that spoilage loss is attributable to the exacting specifications of Job 405 and is charged to this specific job. What would be the unit cost of the good wagons produced on Job 405?
Harper Company’s Job 301 for the manufacture of 2,200 t-shirts was completed during August 2020 at the following unit costs: Direct materials P 20.00 Direct labor 18.00 Factory overhead (includes an allowance of P1 for spoiled work) 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled t-shirts which were sold to a jobber for P6,000. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the goods produced on Job 301? Assume that spoilage loss is attributable to exacting specification of Job 301 and is charged to this specific job. What would be the unit cost of the goods produced on Job 301?
16. Harp Company's Job 501 for the manufacture of 2,200 coats, which was completed during August at the unit costs presented below. Final inspection of Job 501 disclosed 200 spoiled coats which were sold to a jobber for P6,000. Direct materials Direct labor P20 18 Factory overhead (includes an Page 3 of 6 18 P56 Assume that spolage loss is charged to all production during August. What would be the unit cost of the good allowance of P1 for spoiled work coasts produced on Job 5017 а. P53 b. P55 C. P56 d. P58.60 17. Using the same information, assume instead that the spoilage loss is attributable to the exacting specifications of Job 501 and is charged to this specific job. What would be the unit cost of the good coats produced on Job 501? a. P55 b. P57.50 c. P58.60 d. P61.60
Job 456 manufactured 12,000 units that were completed in February at unit costs presented as follows: Direct materials P35 Direct labor 28 Factory overhead (includes an allowance of P15 Spoiled work) 29Final inspection of Job 456 disclosed 125 spoiled units, which were sold for P22,500.What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 001?
Jenny Company's Job No. 520 for the manufacture of 6,600 coats was completed December at the following unit costs: Direct materials - 1,500, Direct labor - 1,000, Factory overhead (including allowance of P50 for spoiled work) - 500. Total = 3,000. Final inspection of Job No. 520 disclosed 600 spoiled costs. These were subsequently sold to a jobber for 600,000. Assuming that spoilage loss is charged to all production, what would be the unit cost of the good coats produced per Job No. 520?