Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 18, Problem 4CMA
Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of
Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be:
- a. $44.00.
- b. $197.50.
- c. $241.50.
- d. $501.00.
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In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget
Actual
Indirect materials
$15,300
$14,700
Indirect labor
19,800
20,300
Utilities
10,100
10,900
Supervision
5,800
5,800
All costs are controllable by the department manager.Prepare a responsibility report for April for the cost center.
HANNON COMPANYAssembly DepartmentManufacturing Overhead Cost Responsibility ReportFor the Month Ended April 30, 2020
Difference
Controllable Cost
Budget
Actual
FavorableUnfavorableNeither Favorablenor Unfavorable
Select an opening responsibility report item Indirect MaterialsIndirect LaborSupervisionUtilities
$Enter a dollar amount
$Enter a dollar amount
$Enter the difference
Select an option…
Also include controllable cost
A company reports the following budgeted overhead costs and budgeted cost driver activity.
Activity (Cost driver)
Quality (number of units inspected)
Factory services (square feet)
Purchasing (number of orders)
Activity
Quality
Factory services
Purchasing
Budgeted Cost
$ 52,116
$ 123,216
$ 17,472
Use activity-based costing to compute the activity rate for each activity.
Note: Round your "Activity Rate" to 2 decimal places.
Budgeted Cost
$
52,116
123,216
17,472
Budgeted Activity of Cost Driver
Standard
Deluxe
Total
3,180
860
3,820
2,220
188
228
Budgeted Activity Usage
Activity Rate
4,040
6,040
416
Chapter 18 Solutions
Financial And Managerial Accounting
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