QUESTION 35 Quiche & Tell, Inc., is a catering business. Direct labor costs are $15 per hour and overhead is allocated to jobs at a rate of $10 per direct labor hour. Catering for the Eggsetera, Inc. party cost $1,000 for direct materials and took 20 direct labor hours. Calculate the total cost of the Eggsetera's party.

QUESTION 35 Quiche & Tell, Inc., is a catering business. Direct labor costs are $15 per hour and overhead is allocated to jobs at a rate of $10 per direct labor hour. Catering for the Eggsetera, Inc. party cost $1,000 for direct materials and took 20 direct labor hours. Calculate the total cost of the Eggsetera's party.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 19BEA: Use the following information for Brief Exercises 2-19 and 2-20: Slapshot Company makes ice hockey...

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Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
Use the following information for Brief Exercises 2-19 and 2-20: Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing 32,000 were put into production. Direct labor of 28,000 (10 workers 200 hours 14 per hour) was incurred. Manufacturing overhead equaled 60,000. By the end of the week, the company had manufactured 500 hockey sticks. Brief Exercise 2-19 Total Product Cost and Per-Unit Product Cost Refer to the information for Slapshot Company above. Required: 1. Calculate the total product cost for last week. 2. Calculate the per-unit cost of one hockey stick that was produced last week.
Question 4 Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows: Maintenance $210,000 Materials handling 90,000 Setups 75,000 Inspection 150,000 The company has been asked to submit a bid for a proposed job. The plant manager believes that obtaining this job would result in new business in future years. Bids are usually based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows: Direct materials $5,000 Direct labor (375 hours) $7,500 Number of material moves 4 Number of inspections 3 Number of setups 2 Number of machine-hours 150 Expected activity for the four activity-based cost drivers that would be used is: Machine-hours 10,000 Material moves 2,000 Setups 100 Quality inspections 4,000 Required: a. Determine the amount of overhead that would be allocated to…
Task 2. Assume your chosen company is pricing its jobs by adding 20% to the total cost of the job it is undertaking. The prime cost (Direct Material, Direct Labour and Direct expenses) of a job was RO 6,840 and it had used 156 direct labour hours. The fixed production overheads are absorbed on the basis of direct labour hours. The budgeted overhead absorption rate was based upon a budgeted fixed overhead of RO 300,000 and total budgeted direct labour hours of 60,000. Determine selling price of the job.
Case 1: The Lexington Company produces gas grills. This year’s expected production is 20,000 units. Currently, Lexington makes the side burners for its grills. Each grill includes two side burners. Lexington’s management accountant reports the following costs for making the 40,000 burners: Cost per Unit Cost for 40,000 units Direct materials $8.00 $320,000 Direct manufacturing labor 4.00 160,000 Variable manufacturing overhead 2.00 80,000 Inspection, setup, materials handling 8,000 Machine rent 12,000 Allocated fixed costs of plant administration, taxes, and insurance 80,000 Total costs $660,000 Lexington has received an offer from an outside vendor to supply any number of burners Lexington requires at $14.80 per burner. The following additional information is available: Inspection, setup, and materials-handling costs vary with the number of batches in which the burners are produced. Lexington produces…
Case 1: The Lexington Company produces gas grills. This year’s expected production is 20,000 units. Currently, Lexington makes the side burners for its grills. Each grill includes two side burners. Lexington’s management accountant reports the following costs for making the 40,000 burners: Cost per Unit Cost for 40,000 units Direct materials $8.00 $320,000 Direct manufacturing labor 4.00 160,000 Variable manufacturing overhead 2.00 80,000 Inspection, setup, materials handling 8,000 Machine rent 12,000 Allocated fixed costs of plant administration, taxes, and insurance 80,000 Total costs $660,000 Lexington has received an offer from an outside vendor to supply any number of burners Lexington requires at $14.80 per burner. The following additional information is available: Inspection, setup, and materials-handling costs vary with the number of batches in which the burners are produced. Lexington produces…
B. Cleanexstar provides a cleaning service for small offices. Cleanexstar calculates a predetermined overheads rate based on total direct labor hours. The budgeted overhead cost for Cleanexstar is RM520,000. The following related information is provided for direct labor hours. Estimated hour per worker 2,000 Number of workers 25 You are required to calculate: i) Total direct labour hours ii) Predetermined overhead rate iii) The actual direct labour hours for Client A are 144 hours. Calculate the overheads absorbed into Client A.
An employ from the mixing department worked 36 hours during the week His salary is $12.00 per hour with a fringe of 20 %. During his work he was able to do 10,000 units How do you classify this cost for your budget? Materials, direct labor, indirect labor, indirect costs ANSWER IN TYPING
2. Blue Hose Company employees a standard cost system for product costing. The standard cost of the product is the following: Raw Materials 2 lbs per unit at $6 per lbLabor 4 hours per unit at $12 per hour Actual direct material cost was $418,000 for 76,000 lbs of material used to manufacture 30,400 units in November. All materials purchased were used in November. Workers were paid $1,510,000 for 125,000 hours of work. Compute the price/rate, quantity/efficiency and flexible spending variances for direct materials and direct labor. Please label all variances. For the price and quantity/efficiency variances, explain what happened and then give a possible explanation as to why it happened. Please Answer With A Step By Step Solution
Cornerstones of Cost Management 4th Ed - Chapter 4 Scenario III: Goodmark Company produces two types of birthday cards: scented and regular. During the year, 20,000 scented cards and 200,000 regular cards were produced. Goodmark has two production departments: Cutting and Printing. Direct labor hours are used to assign the overhead of Cutting and machine hours are used for Printing. The data for the two producing departments are given below: Cutting Printing Total Direct labor hours: Scented 10,000 10,000 20,000 Regular 150,000 10,000 160,000 Total 160,000 20,000 180,000 Machine hours: Scented 2,000 8,000 10,000 Regular 8,000 72,000 80,000 10,000 80,000 90,000 Overhead costs $216,000 $504,000 $720,000 Required: 1. Calculate the overhead rates for each department (round to the nearest cent): Cutting: per direct labor hour Printing: per machine hour 2. Calculate the overhead cost per unit…
problem 5 Marites Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50; Direct Labor for 2 hours @ P8/hr is P16; Manufacturing overhead for 2 hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The variable overhead spending variance must be:
Question 5 Part II The following information is provided for Advent Corporation:Direct Materials: The per-unit standards are 2 pounds at $5 per pound. Last month, 11,200 pounds ofdirect materials that actually cost $53,200 were used to produce 6,000 units ofproduct.Direct Labour: The per-unit standards are 0.5 direct labor hours at $15 per hour. In producing 6,000units, the actual direct labor cost was $46,500 for 3,000 direct labor hours worked.Required:a. Compute the Materials Price Variance b. Compute the Materials Quantity Variance c. Compute the Labour Rate Variance d. Compute the Labour Quantity Variance