An order for 1,000 boxes of Product X has the following production requirements:• 20 machine setups5,000 kilos of raw materials2,000 kilos of hazardous materials40 quality control inspections250 machine hoursRequired:a Suppose the company were to use a single, predetermined overhead rate basedon machine hours, calculate the rate per hour.b. Using the single plant-wide rate, what is the total overhead assigned and theoverhead cost per box of Product X?Calculate the total overhead that should be assigned to the Product X order.C.d.What is the overhead cost per box of Product X? P13-4 The cost accountant of Tacoma Manufacturing Company, manufacturer of Product X,· has established the following overhead cost pools and activity drivers:BudgetedOverheadActivity DriverP100,000 Number of setups75,000 Weight of raw materials30,000 Weight of hazardouschemicals usedOverhead cost poolMachine setupMaterial handlingHazardous waste controlQuality control inspectionOther overhead costs12,000 Number of inspections21,000 Machine hoursP238,000TotalBudgetedlevel foractivity driver200 P500 per setup30,000 kilos P2.50 per kilo10,000 kilos P3.00 per kiloOverhead cost poolOverhead rateMachine setupMaterial handlingHazardous waste controlQuality control inspectionOther overhead costs500 P24.00 per inspection5,000 P4.20 per machine hour

Under traditional costing, the overhead is assigned on the basis of single overhead rate but under…

Answered: P13-4 The cost accountant of Tacoma…

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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For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. 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.)
Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salary
ABC Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to the production department such as Machining and Assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours - - 50,000 hours - 50,000 hours Budgeted direct labor hours - - - 25,000 hours 25,000 hours Budgeted hours of service of quality control - 7,000 hours 21,000 hours 7,000 hours 35,000 hours Budgeted hours of service of maintenance 10,000 hours - 18,000 hours 12,000 hours 40,000 hours Under the step-down method of allocating service department costs from quality control to maintenance, what is the total service cost allocated to the assembly department?
ABC Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to the production department such as Machining and Assembly. The controller of the company has provided the following information: Quality Control Maintenance MachiningAssembly Total Budgeted overhead costs P350,000 before allocation P200,000 P400,000P300,000P1,250,000 Budgeted machine hours 50,000 hours50,000 hours Budgeted direct labor hours 25,000 hours 25,000 hours Budgeted hours of service of quality control 7.000 hours21,000 hours 7.000 hours 35,000 hours Budgeted hours of service of maintenance 10.000 hours18,000 hours 12,000 hours 40,000 hours Under the step-down method of allocating service department costs from quality control to maintenance, what is the total service cost allocated to the assembly department?
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators 28,000 Processing returned products 19,000 Scrap processing (disposal) 25,000 Rework 8,000 Preventative maintenance 30,000 Product design 46,000 Warranty work 12,000 Finished goods inspection 23,000 From the above schedule of activity costs, determine the external failure costs.
Adidas Inc. is exploring ways to allocate the cost of service departments such as Quality control and Maintenance to the production departments such as Machining and assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours - - 50,000 hrs - 50,000 hrs Budgeted direct labor hours - - - 25,000 hrs 25,000 hrs Budgeted hours of service of quality control - 7,000 hrs 21,000 hrs 7,000 hrs 35,000 hrs Budgeted hours of service maintenance 10,000 hrs - 18,000 hrs 12,000 hrs 40,000 hrs Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? a. 421,053 and 284,211 b. 435,201 and 290,640 c. 410,250 and 282,050 d. 435,800 and 287,160
Maurice Corporation has established the following cost pools for 2023. COMMITTED COST POOLS COSTS COST DRIVERS LEVEL Maintenance $ 40,000 Machine hours 10,000 Materials handling 50,000 Number of moves 250 Machine setup 60,000 Setup hours 1,000 Inspection 50,000 Number of inspections 500 Total $200,000 The following information pertains to two representative jobs completed during January 2023 ITEM J101 J102 Direct materials cost…
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:ActivityActivity CostActivity BaseProduction setup$ 44,000Number of setupsProcurement13,500Number of purchase orders (PO)Quality control97,500Number of inspectionsMaterials management84,000Number of componentsTotal$239,000The activity-base usage quantities for each product are as follows:SetupsPurchaseOrdersInspectionsComponentsUnit VolumeCustom2907601,2005002,000Standard1101403002002,000Total4009001,5007004,000a. Determine an activity rate for each activity. b. Assign activity costs to each product and determine the unit activity cost, c. Assume that each product required one direct labor hour per unit. Determine the per-unit cost if factory overhead is…
the controller for wolfe machining has established the following overhead cost pools and cost drivers: overhead cost pool budgeted overhead cost cost driver budgeted activity machine setups $240,000 number of setups 200 setups material handling $90,000 units of raw material 60,000 units quality control inspections $48,000 number of inspections 1,200 inspections other overhead costs $160,000 machine hours 20,000 machine hours order no. 715 has the following production requirements: machine setups: 7 raw material: 11,200 inspections: 16 machine hours: 850 required: a. compute the total overhead that should be assigned to order no. 715 by using activitybased costing. b. suppose that wolfe were to use a single, predetermined overhead rate based on machine hours. compute the rate per hour and the total overhead assigned to order no. 715. c.discuss the merits of an activity based costing system in comparison with a traditional costing system.
"The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Budgeted Overhead cost Cost Driver Budgeted Level for cost Driver Pool Rate Machine Setups $250,000 Number of Setups 125 $2,000 per setup Material Handling 75,000 Weight of Raw Material 37,500 Lb. $2 per pound Hazardous Waste Control 25,000 Weight of hazardous Chemical used 5,000 Lb. $5 per pound Quality Control 75,000 Numbers of Inspections 1,000 $75 per inspection Other Overhead cost 200,000 Machine Hours 20,000 $10 per hours Total $625,000 An order for 1,000 boxes of medical-testing agent has the following production requirements Machine setups ...............................................................................................5 setups Raw material .........................................................................................10,000…
"The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Budgeted Overhead cost Cost Driver Budgeted Level for cost Driver Pool Rate Machine Setups $250,000 Number of Setups 125 $2,000 per setup Material Handling 75,000 Weight of Raw Material 37,500 Lb. $2 per pound Hazardous Waste Control 25,000 Weight of hazardous Chemical used 5,000 Lb. $5 per pound Quality Control 75,000 Numbers of Inspections 1,000 $75 per inspection Other Overhead cost 200,000 Machine Hours 20,000 $10 per hours Total $625,000 An order for 1,000 boxes of medical-testing agent has the following production requirements Machine setups ...............................................................................................5 setups Raw material .........................................................................................10,000…
"The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Budgeted Overhead cost Cost Driver Budgeted Level for cost Driver Pool Rate Machine Setups $250,000 Number of Setups 125 $2,000 per setup Material Handling 75,000 Weight of Raw Material 37,500 Lb. $2 per pound Hazardous Waste Control 25,000 Weight of hazardous Chemical used 5,000 Lb. $5 per pound Quality Control 75,000 Numbers of Inspections 1,000 $75 per inspection Other Overhead cost 200,000 Machine Hours 20,000 $10 per hours Total $625,000 An order for 1,000 boxes of medical-testing agents has the following production requirements Machine setups ...............................................................................................5 setups Raw material .........................................................................................10,000…

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