Simplex Company has the following estimated costs for next year: Direct materials $15,000 Direct labor $55,000 Sales commissions $75,000 Salary of production supervisor $35,000 Indirect materials $5,000 Advertising expense $11,000 Rent of factory equipment $16,000 Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year. If overhead in applied on the basis of machine hours, the overhead rate per hour will be:

Q: Thorn company forecast that total overhead for the current year will be $15,500,000 with 250,000…

A: Overheads are considered as fixed and common expenses that should be allocated to the products based…

Q: The desired profit margin per hour is $27. The material loading charge is 60% of invoice cost.…

A: Hourly rate computation :-  ( Total cost / Total available hour ) * Hour for manufacturing one unit…

Q: At the begging of the year, Crane Company estimates annual overhead costs to be 2400000 and that…

A: Calculate overhead cost per machine hour:

Q: Jackson Manufacturing and Trading Company Limited produces several kitchen products, one of which is…

A: SOLUTION- 1- IF PRODUCTIONS OVERHEADS ARE ABSORBED ON THE BASIS OF MACHINE HOURS- PRODUCTION…

Q: Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing…

A: Direct material costs = Cost per Machine Hour x No. of machine hours = $4.25 x  5,000 hours =…

Q: Coucou Manufacturing Inc. has provided the following information concerning its manufacturing cost…

A: The budget is prepared to estimate the costs in advance.

Q: Choco's Chocolates incurs these costs for the month:                   Direct materials $15,000…

A: The conversion cost is computed as total of direct labor and manufacturing overheads.

Q: The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated…

A: ABC costing is a method in costing which is used to allocate cost based on various activities…

Q: At 50,000 units of production, the Grayson Company expects costs to be as follows:   Direct…

A: Total cost per unit is calculated from the costs incurred divided by the number of units produced.…

Q: The KIA Motor Company estimated its factory overhead for the next period at Rs. 1,600,000 It is…

A: The details of Manufacturing concern are given Required  Compute Applied Fixed overhead rate on the…

Q: Thomlin Company forecasts that total overhead for the current year will be $10,864,000 with 194,000…

A: Projected total overhead = $10,864,000 Projected machine hours = 194,000 Hours

Q: The Thomlin Company forecasts that total overhead for the current year will be $11,132,000 with…

A: Variance is the difference between expected results and actual results. It can be calculated by…

Q: Johnson Electrical produces industrial ventilation fans. The company plans to manufacture 84,000…

A: Static Budget  is a form of budgeting technique in cost accounting in which the expenditure incurred…

Q: Rooney Corporation estimated its overhead costs would be $23,600 per month except for January when…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Gibson Corporation estimated its overhead costs would be $23,600 per month except for January when…

A: Since multiple sub-parts have been posted, only the first three sub-parts will be solved as per the…

Q: Determine the direct labor cost budget for one year. 2. Determine the number of units a laborer can…

A: Given in the question: Number of employees 30 Number of working days in a month 26…

Q: Thomlin Company forecasts that total overhead for the current year will be $11,661,000 with 181,000…

A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…

Q: Cost Driver rate

A: Cost driver refers to the cost which is affected by some specific business activities and influenced…

Q: Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when…

A: Cost allocation: Cost allocation is a process of assigning or allocating indirect cost to each and…

Q: The Thomlin Company forecasts that total overhead for the current year will be $11,778,000 with…

A: Predetermined overhead rate = Estimated overhead/ Estimated total machine hours = $11,778,000 /…

Q: Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and will use…

A: ABC (Activity Based Costing) : This is a method of allocating Overheads to the product based on the…

Q: “Jackson Manufacturing and Trading Company Limited produces several kitchen products, one of which…

A: Overhead means indirect costs related to production or manufacturing products. These costs can not…

Q: The KIA Motor Company estimated its factory overhead for the next period at Rs. 1,600,000. It is…

A: The Company estimated its factory overhead for the next period at Rs. 1,600,000. It is estimated…

Q: The Meyers CPA firm has the following overhead budget for the year:       Overhead       Indirect…

A: The predetermined overhead rate is calculated as total estimated overhead cost divided by total…

Q: If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total…

A: Variable Cost per unit =  (Cost of Highest Activity - Cost of lowest Activity)/(Highest Activity -…

Q: What is the cost of each unit produced?

A: Predetermined overhead allocation:   Manufacturing overhead cost is the pool of all indirect costs…

Q: Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to…

A: Pre determined overhead Allocation  The purpose calculating the pre determined overhead allocation…

Q: Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000…

A: Predetermined overhead rate based on machine hours  = Estimated total overhead / Estimated machine…

Q: Nobel Ltd is a wool coat manufacturer. It produced 80 units in September. The following cost…

A: The total direct costs of manufacturing, comprising direct materials and labour, are referred to as…

Q: K Company estimates that overhead costs for the next year will be $4,000,000 for indirect labor and…

A: Given: Cost for indirect labour = $ 4,000,000 Cost for factory utilities = $ 970,000 Direct labour…

Q: Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs:…

A: The budget is prepared by the management based on experience. Based on the budget, It is helpful for…

Q: In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling’s controller…

A: Answer 3) Kalling Company Absorption Costing Income Statement Sales (28,700 units X $ 32 per…

Q: The Thomlin Company forecasts that total overhead for the current year will be $11,628,000 with…

A: Overhead costs refers to all indirect expenses required to run a business. It helps in determining…

Q: a company uses machine hours to allocate its manufacturing overhead. The company estimates that…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: A company estimates its manufacturing overhead will be $630,000 for the next year. What is the…

A: Answer: Given Manufacturing Overhead = $ 630,000

Q: K Company estimates that overhead costs for the next year will be $3,500,000 for indirect labor and…

A: Planned overhead rate = Total manufacturing overhead / Number of labor hour

Q: The Thomlin Company forecasts that total overhead for the current year will be $11,089,000 with…

A: Under or over applied overhead rate is to be determined based on predetermined overhead rate.…

Q: Next year, Manny’s Mowing Service expects to use 31,200 direct labor hours and have a total…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: Boarders estimates overhead will utilize 160,000 machine hours and cost P80,000. It takes 4 machine…

A: Here, we need to find cost of each unit, when overhead hours, overhead cost and direct expenses are…

Q: K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and…

A: Answer:-  Overhead rate meaning:- A cost assigned to the manufacturing of a product or service is…

Q: The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated…

A: In ABC costing method, overheads are allocated based on the activity or cost pool. Overhead cost…

Q: Next year, Pine Corp. expects to spend a total of 198,250 direct labor hours producing four models…

A: Overhead rate is computed by dividing overhead expenses by the direct labor hours.

Q: Thomlin Company forecasts that total factory overhead for the current year will be $17,280,000 with…

A: Formula: Predetermined overhead rate = Estimated overhead / Estimated Machine hours.

Q: The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with…

A: Predetermined overhead rate = Estimated total overhead/Estimated total machine hours Working capital…

Q: Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when…

A: A budget is an estimation or a financial plan for a defined period, usually one year. It may also…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.