Budgeted manufacturing overhead costs. $1,160,000 Budgeted direct manufaturing labor-hours 29,000 hours Data tableActual direct materials usedActual direct manufacturing labor costs paid in cashIndirect materials usedSupervision and engineering salaries paid in cashPlant utilities and repairs paid in cashPlant depreciationActual direct manufacturing labor-hoursCost of individual jobs completed and transferred to finished goodsCost of goods soldGA$$20,00050,0002,00049,0007,000$ 20,0003,000230,000$ 225,000X Huckvale Corporation manufactures custom cabinets for kitchens. Ituses a normal-costing system with two direct cost categories-directmaterials and direct manufacturing labor-and one indirect cost pool,manufacturing overhead costs. It provides the following information forApril 2020:(Click the icon to view the information for 2020.)(a)Present the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not required.)Journal EntryAccountsPresent the journal entry for (b) manufacturing labor incurred.(b)Journal EntryCAccountsThe following information is also available for 2020:(Click the icon to view the additional information.)Read the requirement.DebitDebitCreditCredit

The direct Costs incurred are debited to work in process account. The indirect cost incurred is…

esent the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not re Journal Entry Accounts esent the journal entry for (b) manufacturing labor incurred. Journal Entry Accounts Debit Debit Credit Credit

esent the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not re Journal Entry Accounts esent the journal entry for (b) manufacturing labor incurred. Journal Entry Accounts Debit Debit Credit Credit

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter20: Activity-based Costing (abc)

Section: Chapter Questions

Problem 1R: Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following...

See similar textbooks

Similar questions

The following information has been extracted from the cost accounting information system database for Victoria Furnitures Ltd. The company manufactures different types of furniture’s, including tables; The company manufactured 1,000 tables during the year 2020. Required: Using the information provided in the above table identify and explain how you classify each of the above costs according to the functional approach; Use the tables as the cost object in the classification of the costs.
Donna Corporation manufactures custom cabinets for kitchens. It uses a normalcosting system with two direct-cost categories—direct materials and direct manufacturing labor—and one indirect-cost pool, manufacturing overhead costs. It providesthe following information about manufacturing overhead costs for 2017.Budgeted manufacturing overhead costs $960,000Budgeted direct manufacturing labor-hours 32,000 hoursActual manufacturing overhead costs $992,000Actual direct manufacturing labor-hours 31,000 hoursThe following information is available as of December 31, 2017.AccountAccount Balance(Before Proration)Manufacturing Overhead in EachAccount Balance Allocated in theCurrent Year (Before Proration)Work-in-Process Control $ 40,000 $ 14,400Finished Goods Control 60,000 24,000Cost of Goods Sold 1,900,000 921,600$2,000,000 $960,000Calculate the underallocated or overallocated manufacturing overhead at the end of 2017and prorate it to Work-in-Process Control, Finished Goods Control, and Cost of…
LogicCo is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. LogicCO uses the FIFO method of process costing. Summary data and weighted-average data for September 2020 are as follows: Requirements :1. For each cost category, compute equivalent units. Show physical units in the first column. 2. Summarize total costs to account for; calculate cost per equivalent unit for each cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. 3. Should 's managers choose the weighted-average method or the FIFO method? Explain.
The Bangor Manufacturing Company makes mechanical toy robots that are typically produced in batches of 250 units. Prior to the current year, the company’s accountants used a standard cost system with a simplified method of assigning manufacturing support (i.e., overhead) costs to products: All such costs were allocated to outputs based on the standard machine hours allowed for output produced. You have recently joined the accounting team and are developing a proposal that the company adopt an ABC system for both product-costing and control purposes. To illustrate the benefit of such a system in terms of the latter, you decide to put together an analysis of batch-related overhead costs. You chose these costs because a previous investigation indicated that there is both a variable component to these costs (materials plus power) plus a fixed component (depreciation and salaries). Last year’s budget indicated that the variable overhead cost per setup hour was $20.00 and that the fixed…
Vic Company manufactures road graders. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a paver: 2019 2020 Units produced and sold 6,800 5,600 Direct manufacture labor-hours 136,000 115,200 Direct materials used (tons) 29,000 24,400 Direct manufacture cost per hour $21 $22 Direct materials cost per ton $431 $443 What is the partial productivity for direct materials for each year? What is the partial productivity for direct manufacturing labor for each year? What is the total factor productivity for each year?
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 6,000 shelves $72,000 $7,900 $135,000 12,000 shelves 144,000 14,800 135,000 24,000 shelves 288,000 28,600 135,000 30,000 shelves 360,000 35,500 135,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit)…
Fulcrum Industries manufactures dining chairs and tables. The following information is available in December 2020: Dining Chairs Tables Total CostMachine setups 200 600 $48,000Inspections 250 470 $72,000Labor hours 2,600 2,400 Fulcrum is considering switching from one overhead rate based on labor hours to activity-based costing.InstructionsPerform the following analyses for these two components of overhead:a. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.b. Compute total machine setups and inspection costs assigned to each product, using activity-based costing.c. Comment on your findings.
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 6,000 shelves $72,000 $8,400 $125,000 12,000 shelves 144,000 15,300 125,000 24,000 shelves 288,000 29,100 125,000 30,000 shelves 360,000 36,000 125,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per…
Classic manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Classic Corporation. Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Begin by preparing the supporting schedule of cost of goods manufactured (in millions). Start with the direct materials and direct labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured. For Specific Date Work-in-process inventory, January 1, 2020 $12 Direct materials inventory, December 31, 2020 8 Finished-goods inventory, December 31, 2020 11 Accounts payable, December 31, 2020 20 Accounts receivable, January 1, 2020 59 Work-in-process inventory, December 31, 2020 1 Finished-goods inventory, January 1, 2020 46 Accounts receivable, December 31,…
Artopex is a manufacturing company that produces custom made furniture pieces made of real wood, which is sourced from the wide Canadian forests and local trees. The nature and uniqueness of their products means that the company must use a job costing system, while their dependency on labor allows them to work with only one Manufacturing Overhead cost pool and allocates MO costs using Direct Labor hours as the cost allocation base. For the year 2020, the company estimated that their budgeted direct material costs will be $2,250,000. Their Budgeted Direct Labor costs at $1,700,000, and their budgeted manufacturing overhead costs at $3,060,000. As their fiscal year concluded, the company managers were able to collect actual costs incurred throughout the year, which were 2,150,000 of Direct Materials; 1,650,000 of Direct Labor, and 3,217,500 of MO costs. Required: Calculate the Manufacturing Overhead Allocation Rate for the year 2020 for both the budgeted and the actual During…
Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost $500,300 Actual direct labor cost $465,700 Estimated manufacturing overhead costs $425,800 Actual manufacturing overhead costs $350,000 Estimated direct labor hours 250,200 Actual direct labor hours 232,800 If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be? Question 49 options: $1.83 per direct labor hour $1.50 per direct labor hour $1.40 per direct labor hour $1.70 per direct labor hour
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 18,000 7,000 Number of material moves 660 990 Number of setups 63 117 Total estimated overhead costs are $234,000, of which $198,000 is assigned to the materials handling cost pool and $36,000 is assigned to the setup cost pool. Required:1. Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours.2. Calculate the overhead assigned to the fabric case using ABC.3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC?