Overhead is assigned to the manufacturing department at the rate of $13 per machine hour. There were 3,200 machine hours during October in the shaping department and 2,300 in the packaging department. Prepare the journal entry to apply overhead to the manufacturing departments. If an amount box does not require an entry, leave it blank.
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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- Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the automotive industry. The activity cost associated with Part XX-10 is as follows: Activity Activity-Base Usage Activity Rate = Activity Cost Fabrication 250 dlh 80per dlh 20,000 Setup 10 setups 80 per setup 800 Production control 10 prod, runs 30 per prod, run 300 Moving 10 moves 25 per move 250 Total activity cost per unit 21,350 Estimated units of production 500 Activity cost per unit 42.70 Each unit requires 30 minutes of fabrication direct labor. Moreover, part XX-10 is manufactured in production run sizes of 50 units. Each production run is set up, scheduled (production control), and moved as a batch of 50 units. Management is considering improvements in the setup, production control, and moving activities in order to cut the production run sizes by half. As a result, the number of setups, production runs, and mows will double from 10 to 20. Such improvements are expected to speed the companys ability to respond to customer orders. Setup is reengineered so that it takes 60% of the original cost per setup. Production control software will allow production control effort and cost per production run to decline by 60%. Moving distance was reduced by 40%, thus reducing the cost per mow by the same amount. A. Determine the revised activity cost per unit under the proposed changes. B. Did these improvements reduce the activity cost per unit? C. What cost per unit for setup would be required for the solution in (A) to equal the base solution?S3. Account Bismarck Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Bismarck uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Model ZM Model DS Direct materials $ 45 $ 20 Direct labor 32 15 Category Estimated Cost Cost Driver Use of Cost Driver Unit level $ 27,000 Number of units ZM: 2,400 units; DS: 9,600 units Batch level 50,000 Number of setups ZM: 25 setups; DS: 25 setups Product level 90,000 Number of TV commercials ZM: 15; DS: 10 Facility level 300,000 Number of machine hours ZM: 500 hours; DS: 1,000 hours Total $ 467,000 Bismarck’s facility has the capacity to operate 4,500 machine hours per month. Required Compute the cost per unit for each product. The current market price for products comparable to Model ZM is $200 and for DS is $86. If Bismarck sold all of its products at the market prices, what was its profit or loss for the previous month? A…Question ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinet is made. The standard costs of producing one (1) of these cabinets are shown below: Direct material (Lumber)50 board feet at P4.00 per foot P200.00Labor standard8 hours at P10.00 per hour 80.00Variable overhead8 hours at P5.00 per hour 40.00Fixed overhead8 hours at P3.00 per hour 24.00Total P344.00 During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shown below: Direct materials purchased (30,000 board feet at P4.10 per board foot)P123,000Direct materials used (24,000 board feet)Direct labor (4,200 hours at P9.50 per hour) 39,900Total variable overhead cost 22,000Total fixed overhead cost 11,000 The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours is P36,000, of which P22,500 is variable and P13,500 is fixed overhead. Requirements 1. Material purchase price variance…
- DSIM 577 -Capacity solve each problem manually The Widgets-R-Us Co. produces glass widgets. The plant is designed to produce 60 widgets per hour, and there is one 10-hour shift per working day. However, with scheduled breaks and needed setups taking about 15 minutes each hour, the plant can only effectively produce 45 widgets per hour for the 10 hours. As it happens, the plant produces 300 widgets per day. Answer the following: __________1a. What is the design capacity of the plant in widgets per day? __________1b. What is the effective capacity of the plant in widgets per day? __________1c. What is the efficiency ratio of the plant? _________1d. What is the utilization ratio of the plant?Please help with the question number 4,5, and 6. Thank you Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing over-head applied on the basis of direct-labor dollars. The product costs have been computed as follows: Product G Product T Product W Raw material ..........................$ 35.00 $52.50 $17.50 Direct labor 16(.8 hr.at $20) 12(.6 hr at $20) 8(.4 hr at $20) Manufacturing overhead* ......140.00 105.00 70.00 Total product cost ..................$191.00 $169.50 $95.50 *Calculation of predetermined overhead rate: Manufacturing overhead budget: Machine…Q6 The Zee manufacturing company produces a single product which goes through one process only. The manufacturing cycle takes a month. The company started its manufacturing operation on 1st February, 2018 and costs of production for this month were as follows: Material Rs. 41,412; Labor Rs. 32,054; FOH Rs. 23,870 The production statistics for the month were as follow: Units completed and transfer to finished goods store Rs. 6,500 Unit in Process on February 31, 2018 was 1,600 (Material 40%, Labor and FOH 20 per cent) Requirement: Prepare the Cost of Production Report at the end of February, 2018
- Choos the correct letter of answer: Beginning work in process was P125,000. Manufacturing costs incurred for the month were P835,000. There were P200,000 of partially finished goods remaining in work in process inventory at the end of the month. What was the cost of goods manufactured during the month?A. P1,160,000B. P 910,000C. P 760,000D. Cannot be determined. Beginning finished goods inventory wasP130,000. The cost of goods manufacturedfor the month was P760,000. And the endingfinished goods inventory was P150,000.What was the cost of goods sold for themonth?A. P 20,000.B. P740,000.C. P780,000.D. P760,000.Table 2Activity Cost Pool Total Cost Total ActivityAssembly $ 1,114,920 57,000 machine-hoursProcessing orders $ 47,016 1,800 ordersInspection $ 107,328 1,560 inspection-hours Use Table 2 to answer this question. XYZ Corporation has provided the following data from its activity-based costing system (Table 2). The company makes 430 units of product ABA a year, requiring a total of 1,120 machine-hours, 35 orders, and 40 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $130 per unit. According to the activity-based costing system, the product margin for product ABA is: Select one: a. $4,290.10. b. $3,815.50. c. none of the given answer. d. $4,159.50. e. $3,602.10.*PLEASE CORRECT ANY INCORRECT INPUTS AS WELL* Requirement 3 Draper has decided to manufacture billing software to sell to its clients. During the first month of manufacturing, Draper incurred the following costs: Inventories: Beginning Ending Materials 10,800 10,300 Work in Process 0 21,000 Finished Goods 0 31,500 Other Information: Direct Materials Purchased 19,000 Plant Utilities 10,000 Plant Janitorial Services 700 Plant Rent 13,000 Sales Salaries Expense 5,000 Customer Hotline Expense 18,000 Delivery Expense 1,700 Direct Labor 190,000 Sales Revenue 750,000 Prepare a Schedule of Cost of Goods Manufactured and an Income Statement for the month ended January 31, 2020. If Draper sells 19,750 software products for the month, how much does it cost to manufacture one unit?
- I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH) spending variance9. FOH volume varianceI. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 1. Material purchase price variance (MPPV)2. Material price usage variance (MPUV)3. Material quantity variance (MQV)4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH)…Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…