a. Determine the single plantwide factory overhead rate. If required, round your answer to the nearest cent. $_ per processing hour b. Use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If required, round your answer to the nearest cent. Total Factory Per Case Factory Overhead Overhead
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Activity-based costing is used to distribute the overhead. in this overheads are allocated on the…
Q: Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The…
A: Overhead refers to the expenses that are not directly associated with the production process.
Q: Simmons, Incorporated's traditional costing system uses a plantwide predetermined overhead rate…
A: The question is based on the concept of Cost Accounting.
Q: Compute the total amount of indirect labor allocated to Dept. 2 using activity-based costing.
A: Activity based segregations of costs is done by the company when the costs are expenses together by…
Q: Complete this question by entering your answers in the tabs below. c. Compute the production costs…
A: activity based costing is a such a method that is used in order to assign the overhead and indirect…
Q: Assume the St. Cloud plant uses three separate overhead rates to assign overhead costs to jobs.…
A: Plantwide Overhead Rate=Plantwide OverheadsTotal Machine Hours Departmental overhead…
Q: You have been given the following information about the production of Bramble Co., and are asked to…
A: Cost Variance- Cost variance is a difference between the actual amount spent and the amount…
Q: a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. per…
A: Factory overhead rate for factory 1 can be computed as below Factory Overhead Rate = Estimated…
Q: a) Prepare in columnar form a statement calculating the overhead absorption rates for each direct…
A: When the predetermined overheads are lower than the actual overheads, then it is known as…
Q: Determining job cost, using direct labor cost, direct labor hour,and machine hour methods? a. If the…
A: Requirement a:
Q: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product…
A: PLEASE LIKE THE ANSWER: DepIT Oh rate Component Estimated…
Q: Selected cost data for Classic Print Co. are as follows: Estimated manufacturing overhead cost for…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Wright Brothers is debating the use of direct labour cost or direct labour hours as the cost…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined Overhead Rates Fickel…
A: 1. Total manufacturing cost assigned to Job N-60: Particulars Amount ($) Direct Material…
Q: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute…
A: a) Predetermined overhead rate = Variable overhead per machine hour + (Estimated fixed overhead /…
Q: Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The…
A: Given, Estimated total factory overhead = $770,400 Estimated direct labor costs = $642,000 Actual…
Q: Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Compute the total amount of indirect labor allocated to Dept. 1 using activity-based costing.
A: Particulars Dept. 1 Dept. 2 Total Direct Labor Hours 888 2072 2960 Indirect Labor $16700 x 888 /…
Q: a) How much overhead would be assigned to each unit under the traditional allocation method? b) How…
A: NOTE: As per our guidelines, we are supposed to answer 3 sub-parts only. Please repost the…
Q: 1.What was the company’s plantwide predetermined overhead rate? 2.How much manufacturing overhead…
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and…
Q: Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance…
A: Factory Overhead Rate: Each unit of production receives a defined amount of factory overhead cost,…
Q: Pomme Company uses activity-based costing to compute product costs for external reports. The company…
A: Activity-based costing is a cost allocation method where overhead and indirect cost are allocated on…
Q: Windsor Company uses activity-based costing to determine product costs. Some of the entries have…
A: The Debit side of the Manufacturing Overhead Account represents the Actual manufacturing overhead…
Q: per processing hour b. Use the overhead rate in (a) to determine the amount of total and per-case…
A: Solution:- a)Determination of the single plantwide factory overhead rate as follows under:- Formula…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Traditional costing method is different from ABC costing method whereby cost driver /activity base…
Q: Use this information for Miramar Industries to answer the question that follow. Miramar Industries…
A: Activity-based costing is known as one of the methods used for allocating indirect costs. In this…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Overhead unit under the traditional allocation method = Total Overhead costs / Total Machine Hours…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Total machine hours for Product 1 = 4*750 = 3,000 hours Total machine hours for Product 2 = 3*1500 =…
Q: a. Calculate the total manufacturing costs and the cost per unit produced and "Cost per unit" to 2…
A: Activity-based costing: Activity-based costing (ABC): It is a method of distribution of overheads…
Q: Use the following information to answer the question. Estimated manufacturing overhead $180,000…
A: Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labour hours
Q: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and…
A: Reciprocal method is a complex and less widely used method for allocation of overhead costs. But it…
Q: The following is taken from Clausen Company’s internal records of its factory with two operating…
A: The overhead cost can be estimated using traditional costing or activity based costing. Using…
Q: Compute for the total Factory overhead cost of Department H if the company uses the direct method…
A: U V W H G Total overhead costs 332000 254000 188000 1275000 1810000…
Q: Manufacturing cost data for Sheffield Company, which uses a job order cost system, are presented…
A: Cost of goods manufactured shows total costs incurred in production and manufacturing of goods.
Q: Desert Products uses a job-costing system with two direct-cost categories (direct materials and…
A: "Since you have posted a question with multiple sub-parts, we will solve only first three sub-parts…
Q: Manufacturing cost data for Sunland Company, which uses a job order cost system, are presented…
A: The question is based on the concept of Cost Accounting. Total manufacturing cost = Direct Material…
Q: Required: 1. Calculate the total overhead assigned to each product by using only machine hours to…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Rex Industries has identified three different activities as cost drivers: machine setups, machine…
A: The overhead rate is calculated as ratio of overhead activity and annual usage.
Q: Assume that a company makes only three products: Product A. Product B. and Product C. Currently, the…
A: Given, Number of units produced - Product A = 1,000 units Percent of total overhead allocated to…
Q: The following Information relates to a company that has two manufacturing departments. The company…
A: Pre-determined Overhead Rate - It is calculated at the start of the accounting period against the…
Q: Use this information for Miramar Industries to answer the questions that follow. Miramar Industries…
A: Given: No. of setups :Product A =100Product B =300 Total cost of production setup=$250000
Q: Requirement: Compute for the Factory overhead rate of Department G if the company uses the direct…
A: Factory overhead is the cost involved in production activities of a manufacturing firms which…
Q: The denominator in the single plantwide factory overhead rate calculation is a.total budgeted…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: You have been given the following information about the production of Bramble Co., and are asked to…
A: The production cost report seems to be a report being used in process costing systems that summarise…
Q: Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented…
A: Manufacturing statement: A manufacturing statement is a statement prepared by the company for…
Q: The base to be used for allocating the cost of Building and ground maintenance is square feet and…
A: Hi, Thank you for the question. As per the honor code, we'll answer the first question since the…
Q: he following is taken from Clausen Company’s internal records of its factory with two operating…
A: Answer) Calculation of Indirect Labor cost allocated to Department 2 using Activity Based Costing…
Snhu acc 202 Single plantwide factory overhead rate
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra strength is produced in capsule form. All direct materials needed for each batch are requisitioned at the start. The work orders for two batches of the products are shown below, along with some associated cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were 60,000 for direct labor and 190,000 for overhead. Budgeted direct labor hours were 5,000. It takes one minute of labor time to mix the ingredients needed for a 100-unit bottle (for either product). In the Bottling Department, conversion costs are applied on the basis of machine hours. Budgeted conversion costs for the department for the year were 400,000. Budgeted machine hours were 20,000. It takes one-half minute of machine time to fill a bottle of 100 units. Required: 1. What are the conversion costs applied in the Mixing Department for each batch? The Bottling Department? 2. Calculate the cost per bottle for the regular and extra strength pain medications. 3. Prepare the journal entries that record the costs of the 12,000 regular strength batch as it moves through the various operations. 4. Suppose that the direct materials are requisitioned by each department as needed for a batch. For the 12,000 regular strength batch, direct materials are requisitioned for the Mixing and Bottling departments. Assume that the amount of cost is split evenly between the two departments. How will this change the journal entries made in Requirement 3?JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.
- Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is 2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: a. Determine the single plant wide overhead rate. b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar.Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston has budgeted the following amounts for various overhead categories in the coming year. In the coming year, Johnston expects to powder coat 120,000 units. Each unit takes 1.3 direct labor hours. Johnston has found that supplies and gas (used to run the drying ovensall units pass through the drying ovens after powder coat paint is applied) tend to vary with the number of units produced. All other overhead categories are considered to be fixed. (Round all overhead rates to the nearest cent.) Required: 1. Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the total fixed overhead for the coming year. 2. Prepare an overhead budget for Johnston for the coming year. Show the total variable overhead, total fixed overhead, and total overhead. Calculate the fixed overhead rate and the total overhead rate (rounded to the nearest cent). 3. What if Johnston had expected to make 118,000 units next year? Assume that the variable overhead per unit does not change and the total fixed overhead amounts do not change. Calculate the new budgeted direct labor hours and prepare a new overhead budget. Calculate the fixed overhead rate and the total overhead rate (rounded to the nearest cent).
- Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
- Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled 1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: 1. Calculate the direct materials used in production for last year. 2. Calculate total prime cost. 3. Calculate total conversion cost. 4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost. 5. Prepare a cost of goods sold statement for last year. 6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.Handbrain Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 2,000 direct labor hours. The total indirect labor is budgeted to be 200,000. Time records from indirect labor employees revealed that they spent 30% of their time setting up production runs and 70% of their time supporting actual production. The following information about cell phones and tablet PCs was determined from the corporate records: a. Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate system using the direct labor hours as the allocation base. b. Determine the budgeted activity costs and activity rates for the indirect labor under activity-based costing. Assume two activitiesone for setup and the other for production support. c. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing. d. Why are the per-unit allocated costs in (a) different from the per-unit activity cost assigned to the products in (c)?Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company’s flexible budget follows: The product requires 3 lb of materials at a standard cost of $5 per pound and 2 hours of direct labor at a standard cost of $10 per hour. For the current year, the company planned to operate at the level of 6,250 direct labor hours and to produce 3,125 units of product. Actual production and costs for the year follow: Required: For the current year, compute the factory overhead rate that will be used for production. Show the variable and fixed components that make up the total predetermined rate to be used. Prepare a standard cost card for the product. Show the individual elements of the overhead rate as well as the total rate. Compute (a) standard hours allowed for production and (b) under- or overapplied factory overhead for the year. Determine the reason for any under- or overapplied factory overhead for the year by computing all variances, using each of the following methods: Two-variance method Three-variance method (appendix) Four-variance method (appendix)