other overhead costs 109, e00 1,100, 000 55% Sales (received in cash) Predetermined overhead rate based on direct labor cost
Q: Variable Costs Fixed Costs per Month Direct material $8.00/unit Supervisory salaries $21,420 Direct…
A: The flexible budget is prepared on the basis of actual production units produced.
Q: labor cost $12,000 and Direct labor is 30% of prime cost. Manufacture costs were 86000, the…
A: Prime Cost : Prime Cost is total direct Cost of production including raw material, direct labour and…
Q: Sales (in Pesos) 4,957,875.00 Sales Volume 22,500.00 Variable Costs: Cost of Direct Raw Materials…
A: "Since you have posted a question with multiples sub-parts, we will solve only first three sub-…
Q: A company produced 500 units of a product and incurred the following costs. Direct materials,…
A: Solution Formulas used Contribution margin = sales – variable cost Contribution margin rate…
Q: Variable costs Direct materials $4.00 per unit Direct labor $1.20 per unit Manufacturing overhead…
A: Solution: Particulars 25000 units 30000 units 35000 units Variable costs: Direct…
Q: Required: 1. As shown above, overhead costs in July amounted to P246,000. Determine how much of this…
A:
Q: nits; unit selling price $73. it of finished goods: direct materials, 2 kg at $4 per kilogram g…
A: Direct Material 2kgs $ 4.00 $ 8.00 Direct Labour 4hrs $ 11.00 $…
Q: and (total estimated costs) pund maintenance 21,960.40 15,990.00 P ts (estimated factory overhead…
A: Hi, Thank you for the question. As per the honor code, we'll answer the first question since the…
Q: Marinette Company makes several products, including canoes. The company has been experiencing losses…
A: Fixed costs can be divided into direct fixed costs that are related to a specific product or segment…
Q: ed at the request of a customer : Dept. A 4,000 terial consumed (O rect labour : ge rate per hour (…
A: 1) Dept A Dept B Dept C Total Direct material $ 4,000 $ 1,000 $…
Q: Direct labor Direct materials Overhead Total variable overhead Total fixed overhead Expected units…
A: Absorption costing also known as full costing, takes into consideration all the fixed and variable…
Q: Total Labour Cost is 415000 OMR. Total labour fixed cost is 50000 OMR. Calculate Total labour…
A: Total Labor Cost = Total Labor Variable Cost + Total Labor Fixed Cost
Q: Question 1: Nizwa Company estimates that annual manufacturing overhead costs will be OMR 900,000.…
A: Overhead is an expense which is not directly related to the production of the product or service.…
Q: Given the following data, calculate product cost per unit under absorption costing. dir labor:…
A: In absorption costing we consider fixed overhead also as cost of product.
Q: Products Pounds sold Pounds on hand at June 30 Sales revenues B 19,000 51,000 $ 4,650 $274,500 $…
A: Joint costs can be allocated on the basis of the Net Realizable Value. In this method, the net…
Q: FP65 , 000 using absorption costing for a given period . Beginning and ending inventories for that…
A: Solution: Fixed overhead deferred in ending inventory under absorption costing = (18000-13000) *…
Q: Elliott Company estimated that costs of production for the coming year would be Raw materials Direct…
A: Over absorbed overhead is a situation when the estimated overhead is more than the actual overhead…
Q: Direct Material Rate -50% Direct labor rate - 75% Unit production - P6 per unit direct labor…
A: The total manufacturing cost includes direct materials, direct labor and Factory overhead.
Q: riable costs per unit: Manufacturing: Direct materials Direct labor 12 Variable manufacturing…
A: Answer: Contribution margin per unit= $46- (20+12+7+3)= $4 per unit 2-b- Variable costing income…
Q: Compute conversion costs given the following data: direct materials, $366,300; direct labor,…
A: Conversion cost = Direct labor cost + Factory overhead cost
Q: X applies overhead on the basis of direct labor hours (DLH). Datas are given: Budgeted overhead…
A: Predetermined overhead rate: It is the rate at which the overhead costs are applied to the products…
Q: 4. Manufacturlng coste. The payroll records of the E. W. Grant Company shiow payments for labor of…
A: The total production cost comprises of direct materials cost, direct labor cost and factory overhead…
Q: charges of P15,000 and P35,000, respectively. P2-9 Splenda & Co provided Estimated manufacturing…
A: Solution a: Predetermined overhead rate = Estimated overhead / Estimated direct labor costs =…
Q: Hobbs Company produces one product for which following is information is available. Product A S per…
A: The margin of safety sales are calculated as difference between current sales and break even sales.
Q: For the year: Percent of capacity Direct labor hours Variable factory overhead Fixed factory…
A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…
Q: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials…
A: Contribution Margin Ratio - It is the difference between a company's sales and variable costs,…
Q: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on…
A: Controllable variance = Budgeted overhead for actual production - Actual overhead Budgeted overhead…
Q: A C. D MVP, Inc. Income Statement For the Year Ended December 31, 2021 Sales $ 375,000 Cost of Goods…
A: Income statement: Income statement as a part of financial statement that presents the organization's…
Q: If works cost is Rs. 40,00,000 and office overheads are 20% of cost of production then what is cost…
A: Office overheads = [works cost / (1 - office overheads)] x 20% = [4000000/(1-0.20)] * 20% = Rs.…
Q: National Company reports production costs for 2022 as follows: Direct materials used Direct labor…
A: The period costs are the costs that are expensed in the period they are incurred and these costs are…
Q: Direct labor Direct materials 17 per unit $4 11 per unit Overhead Total variable overhead Total…
A: Formula: Product cost per unit = Direct materials + Direct labor + Total variable overhead
Q: 8. The following cost relate to XYZ Corp for the year: Sales commission expenses P 185,000 Direct…
A: Period cost includes: Selling expense Administration expense Depreciation expense Sales commission…
Q: ugust when NUBD made 4,500 units: Standard: DLH per unit Variable overhead per DLH Fixed overhead…
A: Solution: Actual overhead = P26,250 + P38,000 = P64,250 Overhead applied =SH * SR = (4500*2.50) *…
Q: Labor-related overhead costs assigned to Model O are (E) a. $240,000 C. $217,000 $192.000 b $232.000…
A: Introduction:- The activity rate is calculated as estimated overhead (activity cost pool) by the…
Q: Direct material used in production OMR 15,000: direct wages incurred OMR 9,500: direct expenses…
A: Absorption rate for Prime cost is calculated by dividing the total overhead costs by the prime cost…
Q: Use the information in the following table to compute each department's contribution to overhead…
A: Overhead: Overhead refers to the business expenses which are not directly related to the production…
Q: Overhead for the year was A. $40,000 over-applied B. $56,000 under-applied C. $56,000 over-applied…
A: Solution:-B) $56,000 under-applied is the correct answer. Reason:-Predetermined overhead…
Q: Quantity for Piling, Steel, and Driving = 683 m Production Rate = 21.336 m/hr Hourly Equipment…
A: 70 lineal feet =21.336 metre
Q: Year 1 Sales (e 561 per unit) Cost of gooda sold (e $35 per unit) Gross margin selling and…
A: Under variable costing, Units product cost include variable manufacturing costs such as direct…
Q: Contribution Margin Incone Statenent Sales (420, 000 units) Variable costs Direct materials Direct…
A: The question is based on the concept of Cost Accounting.
Q: The following information relates to Drexler Inc.’s Year 3 nancials:
A:
Q: Department of e eginning work in rred out 9,100ur sion costs. e equivalent units
A: When units are completed partially at the beginning and end of the year, percentage of completion is…
Q: Walton Company incurred manufacturing overhead cost for the year as follows. Direct materials…
A: Absorption costing is a strategy for Accounting cost which involves the full expense of assembling…
Q: The following information relates to Drexler Inc.’s Year 3 financials:
A:
Q: Calculate predetermined overhead rates. BE3-7 (LO 4) Marquis Company estimates that annual…
A: Pre-determined overhead rates are used to allocate the manufacturing overheads. It can be located on…
Step by step
Solved in 2 steps
- Yellowstone Fabricators uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March: There were no beginning inventories and no ending work in process inventory. From the information presented, compute the following: 1. Unit cost of production under absorption costing and variable costing. 2. Cost of the ending inventory under absorption costing and variable costing.Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of March: a. Compute the total production cost of each job. b. Prepare the journal entries to charge the costs of materials, labor, and factory overhead to Work in Process. c. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. d. Compute the unit cost of each job. e. Compute the selling price per unit for each job, assuming a mark-on percentage of 50%.The general ledger of Lawson Lumber Co. contains the following control account: If the materials charged to the one uncompleted job still in process amounted to $3,400, what amount of labor and factory overhead must have been charged to the job if the factory overhead rate is 100% of direct labor cost? (Hint: First determine the balance in Work in Process.)
- Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
- Tanaka Manufacturing Co. uses the process cost system. The following information for the month of December was obtained from the company’s books and from the production reports submitted by the department heads: Required: Prepare cost of production summaries for the Mixing, Blending, and Bottling (Hint: You must calculate the adjusted unit cost from Blending.) departments. Prepare a departmental cost work sheet. Draft the journal entries required to record the month’s operations. Prepare a statement of cost of goods manufactured for December. (Hint: Goods finished but not transferred to finished goods are considered part of work in process inventory.)Premier Products Inc. has three departments and uses the process cost system of accounting. A portion of the departmental cost work sheet prepared by the cost accountant at the end of July is reproduced below. Using the data in P5-7: 1. Draft the necessary entries to charge the materials and labor costs to the appropriate work in process accounts, to apply factory overhead to work in process, and to record the transfer of costs from one department to another. 2. Prepare a statement of cost of goods manufactured for the month ended July 31.JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M. Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or over applied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102,103, and 104, direct labor hours are 12, 000, 10,000, 11, 000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour. (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101104 using the predetermined factory overhead rate (see above). (i) Finished Job Nos. 101103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and for 50,000 and 45,400, respectively. (k) Transferred under- or over applied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). 2. Post the entries to the work in process and finished goods accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.
- Gunnison Company had the following equivalent units schedule and cost information for its Sewing Department for the month of December: Required: 1. Calculate the unit cost for December, using the FIFO method. 2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for. 3. What if you were asked for the unit cost from the month of November? Calculate Novembers unit cost and explain why this might be of interest to management.JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or overapplied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102, 103, and 104, direct labor hours are 12,000, 10,000, 11,000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101-104 using the predetermined factory overhead rare (see above). (i) Finished Job Nos. 101-103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and O for 50,000 and 45,400, respectively. (k) Transferred under- or overapplied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). Make compound entries for (b), (d), and (h), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?