(LO 2), AN Writing Using the information in E10.3, assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Prepare flexible budget reports for manufacturing overhead costs, and comment on findings. Excel Variable Costs Indirect labor $8,800 Indirect materials 5,800 Utilities 3,200 Fixed Costs Supervision $4,000 Depreciation 1,200 800 Property taxes Instructions a. Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. b. Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. c. Comment on your findings.

(LO 2), AN Writing Using the information in E10.3, assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Prepare flexible budget reports for manufacturing overhead costs, and comment on findings. Excel Variable Costs Indirect labor $8,800 Indirect materials 5,800 Utilities 3,200 Fixed Costs Supervision $4,000 Depreciation 1,200 800 Property taxes Instructions a. Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. b. Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. c. Comment on your findings.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Jaguar Corporation’s 2020 manufacturing costs were as follows: Prime cost P 1,120,000 Variable manufacturing overhead costs 160,000 Depreciation of factory building and equipment 120,000 Factory supervisor’s salary (P16,000 per month) 192,000 Other fixed factory overhead 80,000 What amount should be considered product cost for external reporting purposes for the year 2020? Group of answer choices P 1,280,000 P 1,292,000 P 1,360,000 P 1,672,000
ABC Company has the following costs and expenses for the year December 31, 2020. Raw Materials, 1/1/2020 P40,000 Insurance, Factory P14,000 Raw Materials, 12/1/2020 P25,000 Property Taxes, Factory Building P6,000 Raw Materials Purchases P305,000 Sales Revenue P2,000,000 Work-in-Process, 1/1/2020 P60,000 Delivery Expenses P50,000 Work-in-Process, 12/1/2020 P40,000 Sales Commissions P100,000 Finished Goods, 1/1/2020 P120,000 Indirect Labor P55,000 Finished Goods, 12/31/2020 P110,000 Indirect Material P105,000 Direct Labor P400,000 Factory Machinery, Rent P25,000 Factory Manager’s Salary P25,000 Factory Utilities P55,000 Depreciation, Office Equipment P25,000 Administrative Expense P250,000 Requirement: Prepare a cost of goods manufactured schedule for ABC Company for 2020. Prepare cost of goods sold schedule for ABC Company for 2020. Prepare Income Statement for ABC Company.
For the last quarter of 2020, Carica’s cost records indicate the following: Materials Requisitions (MR) Utility Services (US) Machining Assembly Total Budgeted overhead costs before any inter- department cost allocations $200,000 $1,000,000 $5,456,000 $7,458,000 $14,114,000 Support work supplied by MR (Number of requisitions) 0 25% 40% 35% 100% Support work supplied by US (Power costs) 10% 0 30% 60% 100% Questions: 1. Allocate the two support departments’ costs to the two operating departments using the following methods: a.Direct method. b. Step-down method (allocate MR first). c. Step-down method (allocate US first) d. The Algebraic. Answer quickly
Isem Co.’s 2019 manufacturing costs were as follows: Direct materials and directlabor P700,000; Other variable manufacturing costs 100,000; Depreciation offactory building and manufacturing equipment 80,000; Other fixedmanufacturing overhead 18,000. What amount should be considered productcost for external reporting purposes? A. P700,000B. P800,000C. P880,000D. P898,000
In 2020 the budget for a machine shop showed overheads of $60,000 and volume of activity of12,000 machine hours.In January of 2020, the machine shop incurred $5,400 of overhead and 1,050 machine hourswere worked. Required:a. Determine:i. The predetermined absorption rate. ii. The under/over absorption rate. b. With the use of calculation, explain the factors that contributed to the under/over absorptionof overheads.
Kobe, Inc. had the following information relating to 2020. Budgeted factory overhead ₱ 74,800 Actual factory overhead ₱ 78,300 Applied factory overhead ₱ 76,500 Estimated labor hours 44,000 If Kobe decides to use the actual results from 2020 to determine the 2021 overhead rate, what will the 2021 overhead rate be? Show solution Group of answer choices ₱1.779 ₱1.740 ₱1.650 ₱1.738
Company ABC has the following Monthly Incurred Costs for the Year 2021: January = P 174, 000.00 February = P 135,200.00 March = P 200,000.00 April = P 230,000.00 May = P 260,000.00 June = P 132,000.00 July = P 35,000.00 August = P 340,000.00 September = P 170,000.00 October = P 30,000.00 November = P 230,000.00 December = P 180,000.00 What is the Equivalent Uniform Quarterly Cost incurred by the company the the available Interest rate is 12% compounded semi-annually.
The budget for the plant in 2020 is as follows: Production plant Machine department Assembly department Manufacturing overhead costs 13 597 500 12 271 500 Direct manufacturing labor costs 1 455 000 6 075 000 Direct manufacturing labor-hours 54 000 22 500 Machine-hours 277 500 55 500 What is the budgeted manufacturing overhead rate in the machining and the assembly department? Assume the following amounts appeared at the end of 2020: Production plant Machine department Assembly department Manufacturing overhead costs incurred 15,000,000 11,973,000 Direct manufacturing labor costs 1,545,000 6,150,000 Machine-hours 300,000 51,000 4 Compute the under- or overallocated manufacturing overhead for each department and for the production plant as a whole. 5)Briefly explain why Canadian Company in Dubai uses two different manufacturing overhead cost pools in its job-costing…
Roundhead Corporation’s 2021 manufacturing costs were as follows: Prime costs P 4,000,000 Depreciation of factory equipment 600,000 Depreciation of factory building 400,000 Salaries of janitor assigned in factory premises 120,000 Salesmen’s commission based on sales 200,000 Depreciation for delivery van 150,000 How much of these costs should be considered product / manufacturing costs or inventoried for external reporting purposes? Group of answer choices P 5,470,000 P 5,120,000 P 4,120,000 P 4,000,000
JPS CC collected the following statistics in order to allocate their overheads among the various departments: Cost items Production A Production B Service C Value of equipment N$ 15 000 N$ 9 000 N$ 6 000 Number of employees 36 24 20 Floor space 400m^2 300m^2 200m^2 Material used N$ 40 000 N$ 30 000 N$ 5 000 Direct labour hours 1 300 700 905 Machine hours 450 305 195 the following amounts represent the budgeted overheads for 2019: Depreciation on equipment 900 Rent of factor building 2 250 Electricity factory 900 Protective clothing 800 Cafeteria 720 Insurance building 450 Insurance machinery 750 Overhead allocation rates are based on labour hours, while the secondary apportionment of the service department takes place according to machine hours. Required: (a) Calculate the overhead analysis of each of the two production departments for 2003 (b) Calculate the absorption rate for the production departments. (c) What causes under/over absorption rates.
Use the information given below to calculate each of the following independently 3.1 Expected total Marginal Income and Net Profit/Loss Slumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS
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