10. Ramona Diaz Ltd. produces two products, P1 and P2, at its two departments: Machining and Assembly, as shown in the table below. The accountant tries to allocate overhead costs to the two products. If the accountant decides to allocate overhead based on labor hours, what is P1’s share of the total overhead costs? $180,000 $200,000 $220,000 $240,000
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10. Ramona Diaz Ltd. produces two products, P1 and P2, at its two departments: Machining and Assembly, as shown in the table below. The accountant tries to allocate
If the accountant decides to allocate overhead based on labor hours, what is P1’s share of the total overhead costs?
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- Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursGreen Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursWhat is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
- A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the automotive industry. The activity cost associated with Part XX-10 is as follows: Activity Activity-Base Usage Activity Rate = Activity Cost Fabrication 250 dlh 80per dlh 20,000 Setup 10 setups 80 per setup 800 Production control 10 prod, runs 30 per prod, run 300 Moving 10 moves 25 per move 250 Total activity cost per unit 21,350 Estimated units of production 500 Activity cost per unit 42.70 Each unit requires 30 minutes of fabrication direct labor. Moreover, part XX-10 is manufactured in production run sizes of 50 units. Each production run is set up, scheduled (production control), and moved as a batch of 50 units. Management is considering improvements in the setup, production control, and moving activities in order to cut the production run sizes by half. As a result, the number of setups, production runs, and mows will double from 10 to 20. Such improvements are expected to speed the companys ability to respond to customer orders. Setup is reengineered so that it takes 60% of the original cost per setup. Production control software will allow production control effort and cost per production run to decline by 60%. Moving distance was reduced by 40%, thus reducing the cost per mow by the same amount. A. Determine the revised activity cost per unit under the proposed changes. B. Did these improvements reduce the activity cost per unit? C. What cost per unit for setup would be required for the solution in (A) to equal the base solution?Materials Php 65,000.00 (Php 15,000.00 is indirect) Labor Php 70,000.00 (Php 18,000.00 is indirect) Factory overhead Php 95,000.00 (including indirect materials and indirect labor) Unit Produced 1,000 Sold800 General and administrative expense Php 2,600.00 Office Salaries Php 18,600.00 4. Compute total period cost 5. If the selling price is Php 50.00 compute net
- Compute the ABC Rate for Machine Costs. Actual Machine Costs = $450,000 Estimated Machine Hours = 800 Actual Machine Hours = 1000 Estimated Machine Costs = $400,000Machine-hours 60,000 3,000 Direct labor-hours 8,000 80,000 Total fixed manufacturing overhead cost $390,000 $500,000 Variable manufacturing overhead per machine-hour $2.00 Variable manufacturing overhead per direct labor-hour $3.75 Cost summary for Job 407 Department Milling Assembly Machine-hours 90 4 Direct labor-hours 5 20 Direct materials $800 $370 Direct labor cost $70 $280 Enter a formula into each of the cells marked with a ? below Step 1: Calculate the estimated total manufacturing overhead cost for each department Milling Assembly Total fixed manufacturing overhead cost ? ? Variable manufacturing overhead per machine-hour or direct labor-hour ? ? Total machine-hours or direct labor-hours ? ? Total variable manufacturing overhead ? ?…Gell Corporation manufactures computers. Assume that Gell: • allocates manufacturing overhead based on machine hours • estimated 12,000 machine hours and $93,000 of manufacturing overhead costs • actually used 16,000 machine hours and incurred the following actual costs: What is Gell’s actual manufacturing overhead cost? a. $158,000 b. $83,000 c. $145,000 d. $220,000
- The Love Manufacturing Company has the following financial information:· Manufacturing overhead P300,800· Direct materials increased by 130, 000· Work in process increased by 90, 000· Finished goods decreased by 320, 400Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.How much is the cost of goods sold?Total Manufacturing Costs ₱325,000 Applied Overhead Costs, 75% of direct labor cost ₱075,000 Selling expenses ₱316,000 Administrative expenses ₱314,000 What is the cost of direct materials? Show solution Group of answer choices ₱175,000 ₱193,750 ₱220,000 ₱150,000Q15. A company manufacturing two products furnishes the following data Annual output: Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.