57. Maintenance costs at a Neller Corporation factory are listed below: Machine-Hours Maintenance Cost $26,825 $26,841 $26,532 February March . Аpril. Мay. June. July . August. September. October. 2,973 2,971 2,887 2,951 2,974 2,956 2,959 2,937 2,953 $26,744 $26,860 $26,766 $26,792 $26,713 $26,788 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to: A. $1.85 per machine-hour; $21,325 per month B. $3.77 per machine-hour; $15,648 per month C. $9.07 per machine-hour; $26,762 per month D. $0.27 per machine-hour; $26,071 per month

57. Maintenance costs at a Neller Corporation factory are listed below: Machine-Hours Maintenance Cost $26,825 $26,841 $26,532 February March . Аpril. Мay. June. July . August. September. October. 2,973 2,971 2,887 2,951 2,974 2,956 2,959 2,937 2,953 $26,744 $26,860 $26,766 $26,792 $26,713 $26,788 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to: A. $1.85 per machine-hour; $21,325 per month B. $3.77 per machine-hour; $15,648 per month C. $9.07 per machine-hour; $26,762 per month D. $0.27 per machine-hour; $26,071 per month

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
LO2 Prepare adjusting entries at December 31 for J P Company based on the following data. (a) Factory overhead is applied at a rate of 75% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs in process totaled 8,000. (b) A physical count of factory supplies at the end of the year shows that 4,920 of factory supplies were used during the year. (c) Depreciation expense for the year on the factory building was 8,700 and on factory equipment was 11,600, a total of 20,300. (d) The factory overhead account has a debit balance of 186,500 and a credit balance of 183,900 [after recording adjustments (a) through (c)].
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: 100,000
Winston Company estimates that the factory overhead for the following year will be $609,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,500 hours. The total machine hours for the year were 54,700. The actual factory overhead for the year was $1,251,000. a. Determine the total factory overhead amount applied. Round to the nearest dollar.$fill in the blank 16b238007062f94_1 b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number.$fill in the blank 16b238007062f94_2 c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select -
4.The following were taken from accounting records of Bella Company in December 2020.Prime cost, P301,000Gross profit rate on sales, 20%Cost of goods available for sale, P460,000Direct materials purchased, P170,000Work in process, December 1, 2020, P34,000Direct Materials, December 1, 2020, P16,000Finished goods, December 1, 2020, P30,000Factory overhead, 40% of conversion cost.Sales, P500,000Direct labor, P180,000Compute for December 31, 2020: (1) Direct materials inventory; (2) Work in process inventory; (3) Finished goodsinventory: A.(1) P6,000 ; (2) P25,400 ; (3) P30,000B. (1) P49,000 ; (2) P25,000 ; (3) P30,000C. (1) P65,000 ; (2) P25,400 ; (3) P60,000D. (1) P65,000 ; (2) P25,000 ; (3) P60,000
During the month of January, Marcos & Hennessey, Inc., had total manufacturing costs of $165,000. It incurred $62,000 of directlabor cost and $40,000 of manufacturing overhead cost during the month. If the materials inventory on January 1 was $5,800 lessthan the materials inventory on January 31, what was the cost of materials purchased during the month?a. $53,650b. $93,800 c. $68,800d. $58,000
You are given the following information for the year ended 31 October 20X7: $ Purchases of raw materials 112,000 Returns inwards 8,000 Decrease in inventories of raw materials 8,000 Direct wages 42,000 Carriage outwards 4,000 Carriage inwards 3,000 Production overheads 27,000 Increase in work-in-progress 10,000 The value of factory cost of goods completed is A $174,000 B $182,000 C $183,000 D $202,000
Winston Company estimates that the factory overhead for the following year will be $533,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,100 hours. The total machine hours for the year were 54,800. The actual factory overhead for the year was $1,035,000. a. Determine the total factory overhead amount applied. Round to the nearest dollar.$fill in the blank 4aa682ff700b06f_1 b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number.$fill in the blank 4aa682ff700b06f_2 c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. fill in the blank 3396d0faf031ffc_2 fill in the blank 3396d0faf031ffc_3 fill in the blank 3396d0faf031ffc_5 fill in the blank 3396d0faf031ffc_6
The management of Casablanca Manufacturing Corporation believes that machine- hours is an appropriate measure of activity for overhead cost Shown below are machine hours and total overhead cost for the past six months: Machine- hours Overhead Cost Jan 150,000 P339,000 Feb 140,000 P328,000 Mar 160,000 P350,000 Apr 130,000 P319,500 May 170,000 P362,500 Jun 200,000 P400,000 Assume that the relevant range included all of the activity levels mentioned in this problem. If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
2. Burnham Industries incurs the following costs for the month: Direct materials $2,000 Direct labor 3,000 Factory depreciation expense 3,500 Factory utilities expense 750 CEO's salary 4,000 How much is the prime cost? How much is the conversion cost? PLEASE NOTE: All amounts rounded to whole dollar and shown with "$" and commas as needed (i.e. $12,345).
The books of Matulungin Manufacturing Co. showed the following data for the month of October: Opening and closing inventories: 10/31 10/1 Raw Materials P17,200 P16,000 Work in Process 24,000 16,000 Finished Goods 36,000 28,000 Direct labor cost, P32,000 Factory overhead, 75% of direct labor cost. Cost of Goods Sold, P112,000 Selling and Administrative Expenses, 11,200 Sales for the Month, 150,000 Questions: 1. The cost of goods manufactured during the month would be? 2. The cost of materials purchased during the month would be? 3. The net income of the company for the month would be? 4. If the cost of goods sold for the Prime Manufacturing Company is 105,000, and finished goods inventory decreased by 9,000 during the year, what was the cost of goods manufactured for the year?