Exercise 6-48 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-3, 4, 5) Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for next month. A1 B2 Total Revenue $ 170,000 $ 510,000 $ 680,000 Direct material 65,000 130,000 195,000 Direct labor 54,000 128,250 182,250 Overhead: Direct-material related 42,900 Direct-labor related 40,095 Required: Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month. b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month? d. What is the total overhead allocated to product B2 next month?
Exercise 6-48 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-3, 4, 5) Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following data refer to operations expected for next month. A1 B2 Total Revenue $ 170,000 $ 510,000 $ 680,000 Direct material 65,000 130,000 195,000 Direct labor 54,000 128,250 182,250 Overhead: Direct-material related 42,900 Direct-labor related 40,095 Required: Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs. a. Compute the direct-material related overhead rate for next month. b. Compute the direct-labor related overhead rate for next month. c. What is the total overhead allocated to product A1 next month? d. What is the total overhead allocated to product B2 next month?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...
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Exercise 6-48 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-3, 4, 5)
Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and
A1 | B2 | Total | |||||||
Revenue | $ | 170,000 | $ | 510,000 | $ | 680,000 | |||
Direct material | 65,000 | 130,000 | 195,000 | ||||||
Direct labor | 54,000 | 128,250 | 182,250 | ||||||
Overhead: | |||||||||
Direct-material related | 42,900 | ||||||||
Direct-labor related | 40,095 | ||||||||
Required:
Channing uses a two-stage cost allocation system, It uses direct-material costs to allocate direct-materials related overhead and direct-labor costs to allocate direct-labor related overhead costs.
a. Compute the direct-material related overhead rate for next month.
b. Compute the direct-labor related overhead rate for next month.
c. What is the total overhead allocated to product A1 next month?
d. What is the total overhead allocated to product B2 next month?
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