Woodland Corporation has developed the following activity cost information for its manufacturing activities Activity Activity cost Machine setup $70.00 per batch Movement 12.00 per batch move 0.12 per pound Drilling 5.00 per hole Welding 3.00 per inch Shaping 20.00 per hour Assembly 16.00 per hour Inspection 1.50 per unit Filling an order for a batch of 100 fireplace inserts (each insert weighing 50 pounds) required the following: • Three batch moves • Two sets of inspections • Drilling six holes in each unit

Woodland Corporation has developed the following activity cost information for its manufacturing activities Activity Activity cost Machine setup $70.00 per batch Movement 12.00 per batch move 0.12 per pound Drilling 5.00 per hole Welding 3.00 per inch Shaping 20.00 per hour Assembly 16.00 per hour Inspection 1.50 per unit Filling an order for a batch of 100 fireplace inserts (each insert weighing 50 pounds) required the following: • Three batch moves • Two sets of inspections • Drilling six holes in each unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sand Castle Manufacturing produces concrete yard art. 2,000 concrete seahorses were produced in a recent production run. The run required 1,000 machine hours, and also required five "set-ups" of mixing equipment. Final inspection required 50 hours of inspection activity. Estimated overhead is estimated at $30 per machine hour, plus $2,750 per "set-up" and $25 per inspection hour. Direct materials and direct labor total $75 per seahorse. Apply activity-based costing and determine the amount assigned to a concrete seahorse. A. $86.8 B. $97.5 C. $75.6 D. $100 E. none of the above
Rare Bhd. produces 'Rare Q' in a lengthy mixing and cooling process. Base materials are introduced at the start of this process, and further chemicals are added when it is 80% complete. Each kilogram of base materials produces 1 kilogram of Rare Q. Data for October are: Opening work in process: 40 kg of base materials, 25% processed Cost of opening work in process: Base materials RM1,550 Processing RM720 Costs incurred in October: Conversion costs RM6,864 Further chemicals RM7,200 Closing work in process: 50kg of base materials, 90% processed Finished output: 65 kg of Rare Q. Under normal conditions there are no losses of base materials in this process. However, in October, 5kg of partially complete Rare Q were spoiled immediately after the further chemicals had been added. The 5kg of spoiled Rare Q were not processed to finished goods stage and were sold for a total of RM200. Using the FIFO method, calculate the value of Cost of conversion cost per equivalent unit. Question 10Answer…
Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $524,000 for materials and $196,000 for conversion costs. The results of the processing follow: Alpha Beta Gamma Product Alpha Beta Units Produced 24,000 19, 200 4,800 Required: Assign costs to Alpha, Beta, and Gamma for February using the net realizable value method. Gamma Total Sales Value per Unit $ 9.60 18.00 80.00 Cost Assigned
Klassen Toy Company, Inc., assembles two parts (parts 1 and 2): Part 1 is first processed at workstation A for 10 minutes per unit and then processed at workstation B for 15 minutes per unit. Part 2 is simultaneously processed at workstation C for 12 minutes per unit. Work stations B and C feed the parts to an assembler at workstation D, where the two parts are assembled. The time at workstation D is 20 minutes. a) The bottleneck of this process is workstation D at 20 minutes per unit (enter your response as a whole number). b) The hourly capacity of the process is units (enter your response as a whole number).
Star Wars Corporation has identified the following overhead activities, costs, and activity drivers for the coming year. Activity Setup Inspecting Grinding Excepted Cost $180,000 $90,000 $630,000 Direct Material Direct Labor Units Completed Activity Driver Number setups Inspection hours Machine hours Number of setups Inspection hours Machine hours The company produces two different types of Starfighter aircrafts to be used by the Galactic Republic. Information regarding the production of each type is as follows: Aircraft A Activity Capacity $850,000 $200,000 1,000 35 2,000 13,000 75 6,000 18,000 Aircraft B $950,000 $200,000 500 40 4,000 5,000 The company's normal activity is estimated at 6,000 direct labor hours. Each batch uses approximately 3,000 hours of direct labor. 1,000 units of A uses 3,000 D/L hrs and 500 units of B uses 3,000 of D/L hrs. a) Determine the unit cost for each product using direct labor hours to apply overhead. b) Determine total overhead cost (for Aircrafts A &…
Johnson Electronics manufactures a power supply used in a variety of electronics products, including printers, modems, and routers. The demand for the part is 7,500 units per week. The production of the power supply requires six different manufacturing operations, each in sequence and each having the following processing times. The net available time to work is 52 hours per week, using two shifts. Operation Operation 1 Operation 2 Operation 3 Operation 4 Operation 5 Operation 6 Required: 1. What is the Takt time, in seconds, for this product? (Round your final answer to the nearest whole number.) Takt time Processing Time (seconds) 23 20 25 22 30 25 Yes No seconds per unit 2. Is the processing line properly balanced for this product?
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 24 minutes $ 6.00 $ 2.40 During August, 8,380 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $48,604 for the month. Required: 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $40,224 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155
Northern Company processes 100 gallons of raw materials into 75 gallons of product GS-50 and 25 gallons of GS-80. GS-50 is further processed into 50 gallons of product GS-505 at a cost of $7,250, and GS-80 is processed into 50 gallons of product GS-805 at a cost of $5,750. The production process starts at point 1. A total of $20,000 in joint manufacturing costs are incurred in reaching point 2. Point 2 is the split-off point of the process that manufactures GS-50 and GS-80. At this point, GS-50 can be sold for $725 a gallon, and GS-80 can be sold for $145 a gallon. The process is completed at point 3-products GS-505 and GS-805 have a sales price of $585 a gallon and $225 a gallon, respectively. Required: Allocate the joint product costs and then compute the cost per unit using each of the following methods: (1) physical measure, (2) sales value at split-off, and (3) net realizable value. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)…
Subject: Acounting