Chapter 11, Problem 6DQ

Subject:-- general accounting

Please provide the solution to this financial accounting question with accurate financial calculations

What would be the total budgeted overhead cost?

Silva Manufacturing's output for the current period was assigned a $260,000 standard direct materials cost. The direct materials variances included a $4,500 favorable price variance and a $6,000 unfavorable quantity variance. What is the actual total direct materials cost for the current period?

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Vanderbilt Trading Co. is a retail merchandiser with the following information: . Yard Maintenance: $8,000 • • • • • Delivery Expense: $1,500 Freight-in: $400 Purchases: $60,000 Ending Inventory: $7,500 Beginning Inventory: $10,000 ⚫ Revenues: $90,000 • What is the Cost of Goods Sold (COGS) for Vanderbilt Trading Co.?

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DBZ Company produces two products, Gamma and DBZ. Gamma is a high-volume item totaling 25,000 units annually. DBZ is a low-volume item totaling only 8,000 units per year. Gamma requires 1.5 hours of direct labor for completion, while each unit of DBZ requires 3 hours. Therefore, total annual direct labor hours are 55,500 (25,000 × 1.5 + 8,000 × 3). Expected annual manufacturing overhead costs are $720,000. DBZ uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of DBZ would be assigned an overhead of:

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