Required: 1. Determine the overhead application rate for each department 2. Determine the total cost per unit of the two types of cakes (10-inch and 8-inch glazed)
Q: A large retailer such as Walmart possesses power over smaller suppliers. In theory, Walmart could…
A: 1.Walmart is a large retailer that possesses power over smaller suppliers. In theory, Walmart could…
Q: On September 12, Pina Company agreed to an exchange of assets with another company. Pina gave up a…
A: When assets are exchanged an entry is passed by both entities. The entry must record accumulated…
Q: Avery, an unmarried taxpayer, had the following income items: $ 42,600 5,340 Salary Net income from…
A: Introduction All of the earnings made throughout the period of the year are added up to create the…
Q: On May 10, a company issued for cash 1,600 shares of no-par common stock (with a stated value of $3)…
A: Common stock and preferred stock are two different types of shares issued by the entity for raising…
Q: Explain estimated fixed assets
A: Introduction:- Assets are resources (property) presented in the balance sheet because for it an…
Q: Colonial Corporation uses the retail method to value its inventory. The following information is…
A: The term "cost of goods sold" (COGS) refers to the expenses that are incurred directly in the…
Q: What is the total cost of the initial tableau by NWC Rule? DESTINATION SOURCE DEMAND O 3060 O 3075 O…
A: NORT WEST CORNER RULE Nortg West Corner rule is One of the Important Method of Solving…
Q: Cash flow from operations worked out under direct method and indirect method: options: a. will be…
A: Answer:- Cash flow from operations:- One of the cash flow statement's three categories of activity…
Q: 3. Preparing simple balance sheets Renata is the owner of an orange factory. The following…
A: BALANCE SHEETS Balance sheet is one of the Important Financial Statement of the Company.…
Q: es two processes to manufacture desks. The following details are applicable to Process 2 for March…
A: Process Costing - When producing large quantities of identical goods, process costing is employed…
Q: Compute for the Current Assets Compute for the Non-current Assets Compute for the Current…
A: Non-current assets are those assets whose life is more than one year. These assets include both…
Q: Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are…
A: The following information has been extracted from the given question, Workings- 1. Calculation of…
Q: Refer to the following adjusted trial balance. Woods Company Adjusted Trial Balance For the Year…
A: An asset is a resource with economic value that a person, company, or nation owns or manages in…
Q: In a recent annual report, Bonita Inc. reported beginning inventory of $1,400 million and ending…
A: Inventory turnover ratio :Inventory turnover ratio indicates the demand for the product &…
Q: Lacy is a single taxpayer. In 2022, her taxable income is $44,400. What is her tax liability in each…
A: Answer:- Income tax meaning:- The word "income tax" refers to a category of tax that governments…
Q: Sheffield Company has 2,080 pounds of raw materials in its December 31, 2021, ending inventory.…
A: In this question, we need to prepare direct materials budget for the month ending January 31, 2022.…
Q: Use the following table to answer the question. Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458…
A: Calculation of the present value of 36,100 to be received six years, the market rate is 5%…
Q: Which of the following is relevant to Limited's decision to accept a special order at a lower price?
A: The correct answer is: (A) the shipping costs to the customer The shipping costs to the customer are…
Q: What is the cycle time or a production will be made how often, that is associated with the EPQ from…
A: Economic production Quantity :— It is the number of quantity at which total cost is minimum. At this…
Q: K92
A: Relevant costs is the costs that will only be incurred as a result of specific decision. It is also…
Q: When a firm is expensing an item faster on the tax return than on the financial statements, a…
A: A deferred tax liability is an amount of tax that the company owes to the government but has not yet…
Q: 10. Debt Ratio Dave's Guitar Shop is thinking about adding an addition onto their building for more…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: When preparing a bank deposit which of the following is a best practice? Select one: a.…
A: Bank Deposit: It is the money deposited into bank by customer into its bank account. Bank uses that…
Q: 1.4 Use the information given below to determine the cost (as a percentage, expressed to two decima…
A: When calculating the cost in the percentage from given by supplier in order to receive cash and…
Q: For Pharoah Company, actual sales are $1,100,000, and break-even sales are $792,000. (a) Compute the…
A: Break even sale is the sale whereby the entity is covering its costs but not earning any profits…
Q: o processes to manufacture desks. The following details are applicable to Process 2 for March 2022:…
A: Process Costing - Process costing is an accounting technique for tracking and allocating the direct…
Q: With respect to changes in IT auditing today, which of the following is NOT true? a. IT governance,…
A: Audit refers to the process of verification and examination of the economic or financial…
Q: 1.) Probability Concepts A sales manager estimates that the mean expected sales volume of a proposed…
A: #Steps to find probability: -Finding Z score as (Individual Data value - Mean) /Standarddeviation…
Q: The maturity value of a O plus the interest plus nothing else
A: Note receivable is the amount that has been issued to the company for the future cash benefit for…
Q: ces Required information [The following information applies to the questions displayed below.] A…
A: The money that still comes in after an initial time and resource commitment has been made is known…
Q: Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas…
A: Introduction:- Computation of the cash received by the company received. Cash received
Q: Overheads cost analysis R Production 4 400 000 Materials handling 1 000 000 Set-up 1 050 000…
A: Overhead costs are operating costs of business which can not be directly traced to a particular unit…
Q: Prepare a brief report advising management on the relative merits of each project. (
A: When the management regarding the decision it is important to understand that the relative major…
Q: On January 1, 2024, Aaron Unlimited issues 15%, 15-year bonds payable with a face value of $230,000.…
A: Bond is an financial instruent which is issued to raise funds. Bond is treated as debt and form part…
Q: Tamarisk, Inc. reported the following information for 2022. Assets Cash Accounts receivable…
A: A cash flow statement indicates cash inflow and cash outflow information for a particular time…
Q: Rory Company has an old machine with a book value of $83,000 and a remaining five-year useful life.…
A: If there is increase in income by replacing, then the old machine should be replaced. If there is…
Q: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s…
A: Retained earnings is the amount of income that is taken from the amount of profit earned by the…
Q: Choose the response that correctly completes the following sentence about an individual partner's…
A: A partner's outside basis can't be less than zero. It is used to apply the basis limitation to…
Q: The party to which legal title and management responsibilities are initially given in a trust…
A: The correct answer is: (1) Trustee The Trustee is the party to which legal title and management…
Q: conducting an audit and have obtained the following figures with respect to sales and accounts…
A: The audit procedures that will be applied for verifying the valencies of account receivables will…
Q: Prepare a PLANNED BUDGET for the month of December 2022 for your imaginary company assuming any…
A: Planned budget(1000 units) Sales. 100000(sale price=100) Variable expenses.…
Q: GIRAFE Ltd. as of June 30, 2022, was $5.564 million. The corporation wrote down a $450,000 bad debt…
A: When the sales are made by the corporation on the credit , payment becomes to you and that needs to…
Q: QS 12-3 (Algo) Indirect: Computing cash flows from operations LO P2 Bryant Company reports net…
A: Cash flow statement can be prepared in two methods 1. Direct method 2. Indirect method
Q: Your answer is partially correct. Wayne Company is considering a long-term investment project called…
A: Annual Rate of Return refers to the actual rate of return earned in the year from the investment…
Q: Which of the following activity will NOT show up on cash flow from operating activities? O Purchase…
A: Cash flow statement records the inflow and outflow of cash. Cash flow statement includes cash flow…
Q: 6. MBIEN This machinery was acquired by trading in used machinery. Facts concerning the trade- in…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: The auditor worked for this client for years. But before accepting or continuing with the client…
A: There are many factors which auditor should consider before accepting the auditor. They are :-…
Q: Required: • prepare journal entries • prepare ledger
A: Ledger: It is a collection of account where all business transactions are recorded. Ledger contain…
Q: draw income expenditure account of school for the year closing June 30, 2021 (B) Draw the school…
A: Expenditure RS Income RS To Salary to teachers 1,200,000 By Grant received 600,000 To utilities…
Q: The following trial balance, prepared by the bookkeeper of Mason Company, does not balance. Mason…
A: The trial balance is prepared using the final balance of the ledger accounts. The debit and credit…
Step by step
Solved in 3 steps
- Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Direct machine hours were estimated as follows: In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department. c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Support your recommendation.Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
- Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stencilled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: The direct labor estimated for each production department was as follows: Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: a. Determine the two production department factory overhead rates. b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
- Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected? a. All production costs approach those costs that were budgeted. b. The sales mix does not vary from the mix that was budgeted. c. All manufacturing overhead is a fixed cost. d. All ending inventory balances are zero.A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
- Dama Company produces womens blouses and uses the FIFO method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting and Sewing. During April, Damas controller prepared the following equivalent units schedule for the Cutting Department: Costs in beginning work in process were direct materials, 20,000; conversion costs, 80,000. Manufacturing costs incurred during April were direct materials, 240,000; conversion costs, 320,000. Required: 1. Prepare a physical flow schedule for April. 2. Compute the cost per equivalent unit for April. 3. Determine the cost of ending work in process and the cost of goods transferred out. 4. Prepare the journal entry that transfers the costs from Cutting to Sewing.Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston has budgeted the following amounts for various overhead categories in the coming year. In the coming year, Johnston expects to powder coat 120,000 units. Each unit takes 1.3 direct labor hours. Johnston has found that supplies and gas (used to run the drying ovensall units pass through the drying ovens after powder coat paint is applied) tend to vary with the number of units produced. All other overhead categories are considered to be fixed. (Round all overhead rates to the nearest cent.) Required: 1. Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the total fixed overhead for the coming year. 2. Prepare an overhead budget for Johnston for the coming year. Show the total variable overhead, total fixed overhead, and total overhead. Calculate the fixed overhead rate and the total overhead rate (rounded to the nearest cent). 3. What if Johnston had expected to make 118,000 units next year? Assume that the variable overhead per unit does not change and the total fixed overhead amounts do not change. Calculate the new budgeted direct labor hours and prepare a new overhead budget. Calculate the fixed overhead rate and the total overhead rate (rounded to the nearest cent).Overhead Rates, Unit Costs Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar. Required: 1. Calculate a plantwide rate for Folsom Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate departmental overhead rates for the producing departments. What is the bid price of each job using these rates?