Four Finger Appliance used direct labor hours to allocate production department factory oVerhead LU If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Assembly Department per direct labor hour Test and Pack Department per direct labor hour b. Determine the total factory overhead and the factory overhead per unit allocated to each product. Product Total Factory Overhead Factory Overhead Per Unit Blender Toaster oyen $4
Q: Required Informatlon Greenwood Company manufactures two products-13.000 units of Product Y and 5,000…
A: In this question, we are require to calculate the activity cost rate for general factory. In…
Q: Rapier Woodworking Corporation produces fine cabinets. The company uses a job-order costing system…
A: The predetermined overhead rate is calculated at the beginning of the year and used for determining…
Q: 10. (A) Explain in detail how a single, plant-wide factory overhead allocation rate is established…
A: Solution A: Single plantwide factory overhead allocation is calculated as = Estimated Factory…
Q: Manufacturing overhead—multiple application bases Staley Toy Co. makestoy flutes. Two manufacturing…
A: Given data Units = 4,200 toy Applied machine hours rate = $5.60 per machine hour Applied overhead…
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: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 50…
A: We have to assign the overhead rate to each job, as we have predetermined overhead rate we can…
Q: Mickley Company’s plantwide predetermined overhead rate is $22.00 per direct labor-hour and its…
A: Total of manufacturing overhead cost: This cost is calculated on the basis of the predetermined…
Q: Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.…
A: Formula: Total cost = Direct materials + Direct labor + Manufacturing overhead.
Q: Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses…
A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…
Q: 1. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under the…
A: 1.
Q: Mickley Company’s plantwide predetermined overhead rate is $22.00 per direct labor-hour and its…
A: First, compute the direct labor hours per unit as shown below: Direct labor hour per unit = $140/$14…
Q: tunng obs. ompany has two departments: Assembly and Sanding. The Assembly Department uses a…
A: Manufacturing overhead is defined as all the indirect costs incurred during the procedure of…
Q: Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined Overhead Rates Fickel…
A: 1. Total manufacturing cost assigned to Job N-60: Particulars Amount ($) Direct Material…
Q: Mickley Company's plantwide predetermined overhead rate is $23.00 per direct labor-hour and its…
A: 1). = 20 hours…
Q: Cost accumulation in two departments Rio Valde Co. uses a normal cost, job order costing system. In…
A: In this Numerical has Covered the Concept of Overhead. Predetermine Overhead rate is the estimated…
Q: Paradis Ltd adopts a standard costing system. The standard cost card for their product is as…
A: 1. The following Journal Entry will be recorded to Record Actual Manufacturing Overhead incurred.…
Q: (a) Prepare an answer sheet with the following column headings. Cost Items Direct Material Direct…
A: a.
Q: A company manufactures a product with three models, each with different direct material costs and…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its…
A: DL cost is given as $195 while the DL wage rate is given as $13. Hence the total DL hours = 195/13=…
Q: Applying Overhead Cost; Computing Unit Product Cost Newhard Company assigns overhead cost to jobs on…
A: Calculate the total manufacturing cost assigned to Job 313 as follows:
Q: Factory overhead is allocated to thể three products on the Basis UI proce hours per case: Budgeted…
A: Pre-determined overhead rate = Estimated Factory OverheadsEstimated Processing Hours
Q: The question is in the photos provided
A: In an activity based costing system, the costs are allocated based on each activity to individual…
Q: Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined…
A: The predefined overhead rate and costs related to particular job is given. We have to find total…
Q: Bag Ladies, Inc. manufactures two kinds of bags—totes and satchels. The company allocates…
A: Total Direct labor cost = (Direct labor cost per unit of Totes x Number of units of Totes) +…
Q: Reyes Corporation applies overhead using a normal costing approach based upon machine-hours.…
A: The predetermined overhead rate is calculated as budgeted total cost divided by estimated activity…
Q: 1. Compute the predetermined overhead rate. 2. Using the predetermined rate, compute the per-unit…
A: 1. Assuming the company's allocation base is machine hours. Predetermined overhead rate = Total…
Q: 9. Choice ((You must choose 6 questions from among #’s 5-13 to answer): (A) Explain in detail how a…
A: Factory overheads is one of the important component of manufacturing cost. It means all type of…
Q: Refrigerator-High Volume 900 9 120 6,000 Prior to conducting the study, the factory overhead…
A: Activity Based Costing While implementing the activity based costing it monetarize the total…
Q: a) Prepare an overhead summary and calculate the overhead incurred in each production department…
A: Part (a) As per Traditional Method, Overhead costs are assigned to Baking and Packing department on…
Q: 9. Choice (You must choose 6 questions from among #’s 5-13 to answer): (A) Explain in detail how a…
A: Pre determined Factory overhead cost To determine the pre determined factory overhead cost is…
Q: Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Paradis Ltd adopts a standard costing system. The standard cost card for their product is as…
A: SOLUTION- COST OF GOOD SOLD- IT REFERS TO THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY.…
Q: Comparing ABC and Plantwide Overhead Cost AssignmentsWellington Chocolate Company uses…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Distribution of Direct and Indirect Overhead Costs to Producing Departments. Ming Chemical Co.…
A: Overheads means all indirect costs and indirect expenses related to production and manufacturing of…
Q: Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Green Co. uses 6 machine hours and 2 direct labor hours to produce Product A. It uses 8 machine…
A: Total factory overhead allocated to a unit = (No. of machine hour x Assembly department factory…
Q: Mickley Company's plantwide predetermined overhead rate is $21.00 per direct labor-hour and its…
A: The expenses incurred during the creation of a product are known as manufacturing costs. Direct…
Q: Reliability Co. makes two products. Regular and Supreme. Overhead costs of machining is $2.000.000…
A: Activity-based costing is a method of assigning indirect costs to products and services by…
Q: Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs.…
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and…
Q: Proration of overhead with two indirect cost pools. Adventure Designs makes custom backyard play…
A:
Q: Paradis Ltd adopts a standard costing system. The standard cost card for their product is as…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Determine the activity rates for each activVity. Fabrication %4 per direct labor hour Assembly %$4…
A: Activity based costing uses different activity based on which the costs has been incurred. The…
Q: a. Determine the two production department factory overhead rates. Assembly Department per direct…
A: Factory overhead is the costs incurred during the manufacturing process but it doesn't include the…
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 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: Réquired: A. Prepare overhead analysis sheet to determine the total overhead allocated to production…
A:
Q: Cream 160 210 550 1,300 Packing Department Whole milk 250 340 Skim milk 400 420 Cream 120 140 770…
A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?TyeDye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to manufacture the Party Line and 93,500 direct labor hours to manufacture the Holiday Line. Overhead consists of $225,000 in the machine setup cost pool and $149,960 in the packaging cost pool. The machine setup pool has 52,000 setups for the Party product and 98,000 setups for the Holiday product. The packaging cost pool has 26,000 parts in the Party product and 39,200 parts for the Holiday product. Using the traditional cost method of direct labor hours, what is the predetermined overhead rate? A. $1.50 per direct labor hour B. $2.15 per direct labor hour C. $2.30 per direct labor hour D. $3.80 per direct labor hourFrenchys makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup, with an estimated $120,000 in overhead, and inspection, with $30,000 in overhead. Poly is estimated to have 800,000 setups and 450,000 inspections, while silk has 400,000 setups and 150,000 inspections. How much overhead is applied to each product?
- Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct laborers called machinists. Each machinist is paid 25,000 and can machine up to 500 units per year. Vargas also hires supervisors to develop machine specification plans and to oversee production within the machining department. Given the planning and supervisory work, a supervisor can oversee three machinists, at most. Vargass accounting and production history reveal the following relationships between units produced and the costs of direct labor and supervision (measured on an annual basis): Required: 1. Prepare two graphs: one that illustrates the relationship between direct labor cost and units produced, and one that illustrates the relationship between the cost of supervision and units produced. Let cost be the vertical axis and units produced the horizontal axis. 2. How would you classify each cost? Why? 3. Suppose that the normal range of activity is between 2,400 and 2,450 units and that the exact number of machinists is currently hired to support this level of activity. Further suppose that production for the next year is expected to increase by an additional 400 units. How much will the cost of direct labor increase (and how will this increase be realized)? Cost of supervision?
- Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is as follows: The cost driver for each cost pool and its expected activity is as follows: 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? C. Compared to ABC costing, was each products overhead under- or over applied? D. How much was overhead under- or over applied for each product?Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 20 and 60 trees, respectively, in them at one time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.
- Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Direct machine hours were estimated as follows: In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department. c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Support your recommendation.Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units of Kings, which retails for $170. The direct materials cost is $20 per unit of Aces and $15 per unit of Kings. The labor rate is $30 per hour, and Five Card Draw estimated 64000 direct labor hours. It takes 4 direct labor hours to manufacture Aces and 3 hours for Kings. The total estimated overhead is $128,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. How much is the gross profit per unit for Aces and Kings? B. What is the total gross profit for the year?The Lubbock plant of Morrils Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawnmowers. The plant uses a standard costing system for production costing and control. The standard cost sheet for the subassembly follows: During the year, the Lubbock plant had the following actual production activity: a. Production of subassemblies totaled 50,000 units. b. A total of 260,000 pounds of raw materials was purchased at 4.70 per pound. c. There were 60,000 pounds of raw materials in beginning inventory (carried at 5 per lb.) There was no ending inventory. d. The company used 82,000 direct labor hours at a total cost of 1,066,000. The Lubbock plants practical activity is 60,000 units per year. Standard overhead rates are computed based on practical activity measured in standard direct labor hours. Required: 1. CONCEPTUAL CONNECTION Compute the materials price and usage variances. Of the two materials variances, which is viewed as the more controllable? To whom would you assign responsibility for the usage variance in this case? Explain. 2. CONCEPTUAL CONNECTION Compute the labor rate and efficiency variances. Who is usually responsible for the labor efficiency variance? What are some possible causes for this variance? 3. CONCEPTUAL CONNECTION Assume that the purchasing agent for the small motors plant purchased a lower-quality raw material from a new supplier. Would you recommend that the plant continue to use this cheaper raw material? If so, what standards would likely need revision to reflect this decision? Assume that the end products quality is not significantly affected. 4. Prepare all possible journal entries.