An airline manufacturer incurred the following costs last month (in thousands of dollars): (Click the icon to view the costs.) Read the requirements. ... Requirement 1. Assuming the cost object is an airplane, classify each cost as one of the following: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost? (Enter currency amounts in thousands and not in dollars. If an input field is not used in the table leave the input field empty; do not enter a zero.) a. Airplane seats... b. Production supervisors' salaries. c. Depreciation on forklifts in factory d. Machine lubricants ***** e. Factory janitors' wages... f. Assembly workers' wages... DM DL IM IL Other MOH Period

An airline manufacturer incurred the following costs last month (in thousands of dollars): (Click the icon to view the costs.) Read the requirements. ... Requirement 1. Assuming the cost object is an airplane, classify each cost as one of the following: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost? (Enter currency amounts in thousands and not in dollars. If an input field is not used in the table leave the input field empty; do not enter a zero.) a. Airplane seats... b. Production supervisors' salaries. c. Depreciation on forklifts in factory d. Machine lubricants ***** e. Factory janitors' wages... f. Assembly workers' wages... DM DL IM IL Other MOH Period

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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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. 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, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
The following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five months in 2010: Month February Machine hours 6,900 MOH6,250 March Machine hours 5,000 MOH 5,375 April Machine hours 6,300 MOH 6,025 May Machine houes 9,333 MOH 7,975 June Machine hours 6,8333 MOH 6,050 REQUIRED: Using the high-low method, compute the following: The equation of the cost and quantity. Use the cost relationship determined in part (1) to estimate the total manufacturing overhead costs for July 2010, given that 7,250 machine-hours are scheduled.
A manufacturing company is about to start manufacturing a new product, the FX200 The management accountant has provided the following information about the unit cost of the FX200: Direct labour (3 hours @R10/hr) Indirect labour (2 hours @R9/hr) Direct material (4 kg @R5/kg) Indirect material R10 Direct expenses R4 Indirect production expenses R7 Selling and distribution overhead R5 For one unit of FX200, calculate the following: a).The prime cost b).The total production cost c).The full cost
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 17,500 $ 229,022 Slowest month (December) 10,200 $ 155,000 If Macon expects to use 13,500 machine hours next month, what are the estimated direct labor costs?
Pyramid Company expects to incur $3,000,000 in manufacturing overhead costs this year. During the year, it expects to use 40,000 direct labor hours at a cost of $600,000 and 80,000 machine hours. Required: a. Prepare a predetermined overhead rate based on direct labor hours, direct labor cost, and machine hours. b. Why might Pyramid Company prefer to use machine hours to allocate manufacturing overhead? c. Using each of the predetermined overhead rates calculated in part a and the data that follows for job 128, determine the cost of job 128
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $16,500 + $0.13 per machine-hour $ 20,250 Maintenance $39,000 + $1.90 per machine-hour $ 61,300 Supplies $0.60 per machine-hour $ 8,800 Indirect labor $94,400 + $1.60 per machine-hour $ 119,300 Depreciation $68,200 $ 69,900 During March, the company worked 13,000 machine-hours and produced 7,000 units. The company had originally planned to work 15,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March.
Dine City, manufactures pressure Cookers. Based on past experience, Dine City has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $303,000 + $2.30X, where X equals a number of pressure Cookers. Last year, Dine City produced 40,000 Cookers. Actual overhead costs for the year were as expected. Answer the following: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by Dine City last year? 3. What is the total fixed overhead cost incurred by Dine City last year? 4. What is the total variable overhead cost incurred by Dine City last year? Please write all the workings and details, explain the logic wherever applicable and required. Please do not just write the answer.
The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $16,486.40. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.) Question 12 options: $3,266 $9,274 $8,243 $6,595
Karvel Corporation uses machine hours as the basis for allocating manufacturing overhead costs to production. For the month of August, Karvel estimated total manufacturing overhead costs at GH¢300,000 and total machine hours at 75,000 hours. Actual results for the period were total manufacturing overhead costs of GH¢290,000 and total machine hours of 75,000 hours. As a result of this outcome, Karvel would haveA. applied more overhead to Work in Process than the actual amount of overhead cost for the year.B. applied less overhead to Work in Process than the actual amount of overhead cost for the year.C. applied an amount of overhead to Work in Process that was equal to the actual amount of overhead.D. found it necessary to recalculate the predetermined overhead rate.