Wildhorse's Style manufactures dining room tables for both home and restaurant locations. Kevin Jason, the company's controller, developed the following standard costs for each 5-foot table. Ms. Jason developed these standards based on the company manufacturing 1,420 tables per month. Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per table ● ● ● ● Standard Price $50.00 per linear foot 18.00 per DLH 16.00 per DLH 28.20 per DLH Standard Quantity 5.00 linear feet 12.00 DLH 12.00 DLH 12.00 DLH Standard Cost $250.00 216.00 192.00 338.40 $996.40 The company actually manufactured 1,320 tables during the month. 6,120 linear feet of direct materials were purchased during the month at a total cost of $258,264. 5,620 linear feet of direct materials were used to manufacture the tables. 16,620 direct labor hours were worked at a total cost of $245,160. Actual variable overhead was $286,800. Actual fixed overhead was $412,700.

Wildhorse's Style manufactures dining room tables for both home and restaurant locations. Kevin Jason, the company's controller, developed the following standard costs for each 5-foot table. Ms. Jason developed these standards based on the company manufacturing 1,420 tables per month. Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per table ● ● ● ● Standard Price $50.00 per linear foot 18.00 per DLH 16.00 per DLH 28.20 per DLH Standard Quantity 5.00 linear feet 12.00 DLH 12.00 DLH 12.00 DLH Standard Cost $250.00 216.00 192.00 338.40 $996.40 The company actually manufactured 1,320 tables during the month. 6,120 linear feet of direct materials were purchased during the month at a total cost of $258,264. 5,620 linear feet of direct materials were used to manufacture the tables. 16,620 direct labor hours were worked at a total cost of $245,160. Actual variable overhead was $286,800. Actual fixed overhead was $412,700.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13EA: Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total...

See similar textbooks

Similar questions

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total overhead of $600,000 has traditionally been allocated by direct labor hours, with 400,000 hours for the Standard and 200.000 hours for the Slap Shot. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $450.000 of overhead, with 30,000 hours used on the Standard product and 15,000 hours used on the Slap Shot product. It was also estimated that the inspection cost pool would have $150,000 of overhead, with 25,000 hours for the Standard and 5,000 hours for the Slap Shot. What is the overhead rate per product, under traditional and under ABC costing?
Frenchys makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup, with an estimated $120,000 in overhead, and inspection, with $30,000 in overhead. Poly is estimated to have 800,000 setups and 450,000 inspections, while silk has 400,000 setups and 150,000 inspections. How much overhead is applied to each product?
Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000
Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150.000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. k was also estimated that the setup cost pool would have $100000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing?
Customs makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000 in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 170,000 inspections, while silk has 250,000 setups and 80,000 inspections. How much overhead is applied to each product?
Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $15.00 per hr. standard time per unit 2.00 hrs. Direct materials (oak): standard price $11.50 per bd. ft. standard quantity 19 bd. ft. Variable factory overhead: standard rate $2.40 per direct labor hr. Fixed factory overhead: standard rate $1.20 per direct labor hr. a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.$ per dining room table b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of . Using this principle, cost deviations from standards can be investigated and corrected.
Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $16.00 per hr standard time per unit 3.50 hrs. Direct materials (oak): standard price $11.50 per bd. ft. standard quantity 17 bd. ft. Variable factory overhead: standard rate $2.80 per direct labor hr. Fixed factory overhead: standard rate $1.20 per direct labor hr. Determine the standard cost per dining room table.
Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $28.00 per hr. standard time per unit 5.0 hrs. Direct materials (oak): standard price $12.00 per bd. ft. standard quantity 18 bd. ft. Variable factory overhead: standard rate $2.00 per direct labor hr. Fixed factory overhead: standard rate $3.80 per direct labor hr. a. Determine the standard cost per dining room table.$fill in the blank 1 per table b. A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of . Using this principle, cost deviations from standards can be investigated and corrected.
Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $28.00 per hr. standard time per unit 5.0 hrs. Direct materials (oak): standard price standard quantity $12.00 per bd. ft. 18 bd. ft. Variable factory overhead: Fixed factory overhead: $2.00 per direct labor hr. $3.80 per direct labor hr. standard rate standard rate a. Determine the standard cost per dining room table. b. Why would Atlas Furniture Company use a standard cost system?
Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00
ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinet is made. The standard costs of producing one (1) of these cabinets are shown below: Direct material (Lumber) 50 board feet at P4.00 per foot P200.00 Labor standard 8 hours at P10.00 per hour 80.00 Variable overhead 8 hours at P5.00 per hour 40.00 Fixed overhead 8 hours at P3.00 per hour 24.00 Total P344.00 During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shown below: Direct materials purchased (30,000 board feet at P4.10 per board foot) Direct materials used (24,000 board feet) Direct labor (4,200 hours at P9.50 per hour) P123,000 39,900 22,000 11,000 Total variable overhead cost Total fixed overhead cost The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours is P36,000, of which P22,500 is variable and P13,500 is fixed overhead. Requirements) 1. Material purchase price variance…