For the next two items. RoseCorporation has the followingoverhead costs and cost drivers.Direct labor hours are estimated at100,000 for the year. (Refer toimage) If overhead is applied usingtraditional costing based on directlabor hours, the overheadapplication rate is *Activity Cast PoolEst. OverheadCostP 120.000Cost DriverDriverAcivity500 ordersOrdering and ReceivingMachine SetupMachiningAssemblyInspectionOrdersSenpsMachine hoursPartsInspections297 OD0450 sotups125,D00 MH1,50n,Ona1.200,000300,000 500Lnspections1,000,000 partsa. P9.60O b. P12.00c. P15.00O d. P34.17If overhead is applied usingactivity-based costing, theoverhead application rate forordering and receiving per costdriver activity count is *a. PO.12b. P1.20c. P240O d. P6,834

Name: For the next two items. RoseCorporation has the followingoverhead cos
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Description: For the next two items. RoseCorporation has the followingoverhead costs and cost drivers.Direct labor hours are estimated at100,000 for the year. (Refer toimage) If overhead is applied usingtraditional costing based on directlabor hours, the overhea

Total estimated overhead costs = ordering and receiving + machine setup + machining + assembly +…

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For the next two items. Rose Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. (Refer to image) If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is * Activity Cost Pool Cos Driver Est. Overhead Cost P 120,000 Driver Acivity 500 orders Ordering and Receiving Machine Semp Machintng Assembaly Inspection Orders Senups Machtne hors 450 setups 125,000 MH 297 000 1,500, Ona 1.200,000 1,000,000 parts 300,000 500Lspections Parts laspections a. P9.60 O b. P12.00 O c. P15.00 O d. P34.17 If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving per cost driver activity count is * Оа. РО.12 O b. P1.20 О с. Р240 O d. P6,834

For the next two items. Rose Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. (Refer to image) If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is * Activity Cost Pool Cos Driver Est. Overhead Cost P 120,000 Driver Acivity 500 orders Ordering and Receiving Machine Semp Machintng Assembaly Inspection Orders Senups Machtne hors 450 setups 125,000 MH 297 000 1,500, Ona 1.200,000 1,000,000 parts 300,000 500Lspections Parts laspections a. P9.60 O b. P12.00 O c. P15.00 O d. P34.17 If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving per cost driver activity count is * Оа. РО.12 O b. P1.20 О с. Р240 O d. P6,834

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11PA: When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead...

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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?
Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Box Springs estimates there will be four orders in the next year, and those jobs will involve: What is the total cost of the jobs?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?
Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected? a. All production costs approach those costs that were budgeted. b. The sales mix does not vary from the mix that was budgeted. c. All manufacturing overhead is a fixed cost. d. All ending inventory balances are zero.
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000
Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.
Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows: