
1.
Direct Labor Budget:
The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.
Budgeted Overhead Allocation Rate:
The budgeted overhead allocation rate is the rate at which the overhead is allocated. This is calculated by dividing the total fixed and variable
To prepare: The direct labor budget in both hours and dollars.
2.
The budgeted overhead allocation rate.
3.
The total budgeted cost for all jobs.
4.
To prepare: The revenue budget for the year assuming that the charge is $0.60 per square foot.
5.
The budgeted operating income.
6.
Whether to pay for additional advertising or not.
7.
To explain: Flaw in the analysis, the way to improve analysis and whether to invest in additional advertising or not.
8.
To explain: The actions that a manager must take to improve the profitability.

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Chapter 6 Solutions
Cost Accounting
- Tungsten, Inc. manufactures both normal and premium tube lights. The company allocates manufacturing over machine hours as the allocation base. Estimated overhead costs for the year are $108,000. Additional estimated information is given below. Machine hours (MHr) Direct materials Normal 23,000 $60,000 Premium 31,000 $480,000 Calculate the predetermined overhead allocation rate. (Round your answer to the nearest cent.) OA. $4.70 per direct labor hour OB. $3.48 per machine hour OC. $2.00 per machine hour OD. $0.20 per direct labor hourarrow_forward< Factory Utilities Indirect Materials Used $1,300 34,500 Direct Materials Used 301,000 Property Taxes on Factory Building 5,100 Sales Commissions 82,000 Indirect Labor Incurred 25,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6,300 What is the total manufacturing overhead?arrow_forwardDiscuss the financial reporting environment and financial statements. What is the purpose of accounting? What impact does the AICPA, FASB, and SEC play in accounting, particularly with regards to the financial statements?arrow_forward
- K Sunlight Design Corporation sells glass vases at a wholesale price of $3.50 per unit. The variable cost to manufacture is $1.75 per unit. The monthly fixed costs are $7,500. Its current sales are 27,000 units per month. If the company wants to increase its operating income by 30%, how many additional units must it sell? (Round any intermediate calculations to two decimal places and your final answer up to the nearest whole unit.) A. 7,500 glass vases OB. 33,815 glass vases OC. 6,815 glass vases D. 94,500 glass vasesarrow_forwardCan you help me with of this question general accountingarrow_forwardWhat is the correct option? General accounting questionarrow_forward
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