Ex_7-41

PROBLEM I ABC Company's total overhead costs at various levels of activity are presented below: March April May June. Machine Hours Total Overhead Costs $216,800 $194,000 $239,600 $262,400 60,000 50,000 70,000 80,000 Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000 machine-hour level of activity these costs are: Utilities (V). Supervisory salaries (F). Maintenance (M).. Total overhead cost V = Variable; F = Fixed; M = Mixed The company wants to break down the maintenance cost into its basic variable and fixed cost elements. Required: $ 54,000 62,000 78.000 $194.000 a. Estimate the maintenance cost for June. b. Use the high-low method to estimate the cost formula for maintenance cost. c. Estimate the total overhead cost at an activity level of 55,000 machine hours.

Operating Department Service Department A B 1 2 Total Overhead costs £100,000 £93,100 £62,100 £237,200 £257,400 £749,800 855 Number of employees Square feet of space occupied Hours of press time 55 40 160 360 240 7,500 38,000 30,000 172,400 90,000 12,900 19,000 95,000 60,000 The company allocates service department costs by the direct method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: How much overhead cost would be allocated to each operating department? (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Service Departments Operating Departments 2 Total Overhead costs Allocation: Department A: Department B: Department C: Total overhead costs after allocations

EstimatedFixedCost   EstimatedVariableCost(perunitsold) Production costs:             Direct materials     $19       Direct labor     13       Factory overhead $261,300     10     Selling expenses:             Sales salaries and commissions 54,300     4       Advertising 18,400             Travel 4,100             Miscellaneous selling expense 4,500     4     Administrative expenses:             Office and officers' salaries 53,100             Supplies 6,500     2       Miscellaneous administrative expense 6,040     2       Total $408,240     $54     It is expected that 8,640 units will be sold at a price of $135 a unit. Maximum sales within the relevant range are 11,000 units. Required: Question Content Area 1.   Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7       $- Select - Cost of goods sold:           $- Select -       - Select -       - Select -…

Direct labor cost Factory overhead Direct labor hours Machine hours Dept. A $ 69,000 $115,920 Dept. B $49,000 $54,855 6,900 2,900 9,900 15,900 of the year, the company made the following What predetermined overhead rate would be used in Department A and Department B, respectively? Multiple Choice 168% and 345%. 168% and $3.45. ) $1.68 and 345%. $1.68 and $3.45.

First-stage allocation of overhead costs to the activity cost pools: Overhead costs Installing floors Job Support Other Total Production overhead 76,000 76,000 38,000 190,000 (190000*40%) (190000*40%) (190000*20%) Office expense 14,000 (140000*10%) 84,000 (140000*60%) 42,000 140,000 (140000*30%) Total 90,000 160,000 80,000 330,000 Determination of Activity rates: Overhead costs Installing floors Job support Total activity Activity rate Overhead $ (A) (B) (A/B) 90,000 200 450 Per square 160,000 160 1,000 Per Job Determination of Overhead costs based on activity rates for Job of 3.4 squares: Overhead costs Installing floors Job support Activity Overhead Activity rate (A) consumed by allocated (A*B) Job (B) 450 3.40 1,530 1,000 1.00 1,000 Total overhead cost 2,530

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Answer Problem #8 : items 27 & 28

Question 7 of 7 Activity Cost Pool Loading and unloading Travel Logistics (a) Activity Cost Pool Loading and unloading Travel Cost Drivers Logistics Number of pieces Miles driven Hours Compute the activity-based overhead rates for each pool. (Round answers to 2 decimal places, e.g. 12.75.) Activity-Based Overhead Rate $ Estimated Overhead $95,655 453,750 86,240 $ Estimated Use of Cost Driver per Activity per piece per mile 91,100 605,000 3,080 per hour

Activity Cost Pool Activity Measure Estimated Overhead Cost Machining 24 378,000 Machine-hours HR Supporting direct labour %24 Direct labor-hours 238,800 Machine setups 24 Number of setups 93,100 Number of product lines Product-sustaining $4 90,000 Total %24 799,900 The expected activity for the year was distributed among the company's two product lines as follows: Activity Measure Product A Product B Machine-hours 7900 6100 Direct labor-hours 7900 4100 Number of setups 40 150 Number of product lines 1 1 Required: 1. Based on the data of four cost pools and activity measures, compute the activity rate for each activity cost pool: a. What is the activity rate for the Machining activity cost pool? Round to nearest dollar Activity rate: $ per machine-hour b. What is the activity rate for the Supporting Direct Labour activity cost pool? Round to nearest dollar Activity rate: $ per direct labour-hour

activity car pool est. overhead cost expected activity A B total #1 $29,200 1000 500 1500 #2 $40,000 200 800 1000 #3 $180,000 600 5400  6000 Chibucos Company has two products: A and B. The annual production and sales level of Product A is 9,094 units. The annual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools. The overhead cost per unit of Product A under activity-based costing is closest to: options: 1. $1.83 2. $1.98 3. $5.00 4. $10.00

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QUESTION 6 Your company currently produces a range of three products, D, E and F to which the following details relate for Period 2. Production (units) Material cost per unit Labour hours per unit Machine hours per unit D 1,500 RM 18 Set-up costs Handling costs Machining costs Inspection costs 1 3 Labour costs are RM 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analysed as follows: RM 327,250 187,000 140,250 280,500 935,000 E 2,500 RM 10 3 2 D 90 16 180 F 14,000 RM 20 2 6 (a) Calculate the cost per unit for each product using conventional methods. The introduction of an ABC is being considered and to that end the following volume of activities have been identified with the current output levels. E 138 28 216 F 576 116 804 Number of set-ups Number of material issues Number of inspections (b) Calculate the cost per unit for each product using the ABC approach. (c)…

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Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period  2.                                      D                  E                         F Production (units)        1,500           2,500                 14,000   Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3    2 Machine hours per unit 3 2    6   Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost             327,250 Handling cost                   187,000 Machine cost                     140,250 Inspection cost                  280,500                                           935,000   Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…

Total Manufacturing Overhead Prime Conversion Cost Direct Materials Direct Labor Manufacturing Cost Case Cost A $ 2,120 $ 1,130 $ 3,670 6,990 11,660 2,100 6,770 8,020 1,420 3,090 9,440 1,980 3,010 5,930 E 11,610 20,630 3,470

Please answer question

Data for the past two years for Behavior Corp. are:   20A 20B Units produced 10,000 11,000 Overhead applied per unit P15 P15 Actual overhead:          Fixed 50,000 55,000      Variable 95,000 150,000 Estimated overhead:          Fixed 50,000 56,000      Variable 130,000 142,000 The company determines overhead rates based on estimated units to be produced.   Required: Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B. Determine the over- or underapplied factory overhead for each of the two years.

Product A Product B Direct material in pounds 139,500 190,500 Direct labor hours 30,000 37,500 Machine hours 52,500 22,500 Number of setups 430 860 Number of units produced 15,000 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hours costs $12. a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A Total cost $2,296,245 * $ Total cost per unit $ 153.08 * $ b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Product A $3,141,495 * $ 209.43 * $ Total cost Total cost per unit $ Product B 2,907,555 * 387.67 * Total cost $ Total cost per unit $ Product A 2,491,335 * $ 166.09 * $ Product…

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Equipment expense Indirect labor $ 102,000 $ 7,500 Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Indirect labor Activity: Product F6 Product X0 Total Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Processing) 15,000 1,260 16,260 mrst stage allocations follow. Processing 0.30 0.30 Activity Coat Pools Supervising 0.50 0.40 Equipment depreciation Supervisory expense What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Equipment depreciation Supervisory expense Product MO Product H2 Total Batches (Supervising) 610 640 1,250 Distribution of Resource Consumption Across Activity Cost Pools: $ 80,300 $ 10,100 Activity Cost Fools Machining Order…

Direct Materials Manufacturing Overhead Conversion Cost Case Direct Labor Prime Cost A $ 900 $ 1,300 $ 2,000 B 400 1,325 2,650 700 1,500 2,880 750 1,600 2,000 D.

Paragraph Styles Acct 201 Practice Problems (Ch.2) Question 1: Nizwa Company estimates that annual manufacturing overhead costs will be OMR 900,000. Estimated annual operating activity bases are direct labor cost OMR 500,000, direct labor hours 50,000, and machine hours 100,000. Instructions Compute the predetermined overhead rate for each activity base.

Problem 18  Service Cost Allocation Irish Corporation distributes its service department overhead cost directly tto producing departments. Information for January, 2030 is presented below.                                                    Maintenance           Utilities FOH cost                                      93,500                    45,000 Service Provided to Maintenance                                                                  10% Utilities                                            20%            Mixing                                             40%                         30% Assembly                                         40%                         60% Required: Determined the amount of factory overhead cost of service departments allocated to producing departments using: Direct Method Step Method Reciprocal Method

Inventories 4/1   4/30   Direct Materials $ 19,000     $ 15,800     Work in Process   9,400       6,300     Finished Goods   28,400       38,000         Additional information for the month of April:           Direct materials purchased $ 33,600   Direct labor   32,000   Direct labor rate per hour   10   Factor overhead incurred   42,400       Overhead is applied at $12 per direct labor hour.   For the month of April, prime cost incurred was:

Question 01   A company has two production cost centers and two service cost centers. The following details have been provided:                           Total Production cost centers Service cost centers     Assembly Finishing Canteen Maintenance Floor space (Square meters) 10,000 6,900 2,400 400 300 Cubic capacity (Cubic meters) 20,000 15,000 3,000 1,000 1,000 Number of employees 30 15 6 3 6 Direct labour hours - 4,500 1,040 - - Machine hours - 1,500 3,500 - -     The overhead costs estimated for the period are as follows:     £ Rent 40,000 Heat and light 10,000 Welfare costs 5,000 Supervisors – Assembly Department 2,500 Supervisors – Finishing Department 4,000 Machine repair cost 8,000   The work done by the service cost centers for the production cost centers are as follows:   Work done by Assembly Finishing Stores Maintenance…

Production costs incurred in the manufacture of 2,400 units of a product in a period are: $ Direct costs 19,680 Variable overheads 3,120 Fixed overheads 14,640 What would be the expected total cost of manufacturing 2,300 units of the product in a period?   $35,880 $36,490 $36,620 $37,310

Exercise #1 The following information is estimated by Blue Sea Ltd’s accountant for the upcoming financial year: Sales revenue     3,480,000 Machine hours           54,000 Direct labour hours           81,000 Direct labour rate                  $22.00 Manufacturing overhead     1,326,000   Required: Calculate the predetermined overhead rates assuming that the cost driver is: Direct labour hours Direct labour costs Machine hours

Estimated total machine-hours used Total 4,000 Estimated total fixed manufacturing overhead Molding 2,500 $ 13,000 $ 2.60 Fabrication 1,500 $ 16,800 $ 29,800 $ 3.40 Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Foundational 2-4 (Algo) Job P $ 25,000 $ 30,600 2,900 1,800 4,700 Unit product cost Job Q $ 14,000 $ 12,300 Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation base in both departments. 2,000 2,100 4,100 4. If Job P includes 20 units, what is its unit product cost?…

Can you answer the questions in 17-3B #1-4