US Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer $276000; and legal support, $138000. Information on the S support, ntral two services is: Audit Тах Direct labor cost $50000 $100000 CPU minutes 40000 10000 200 800 Legal hours used Overhead applied to audit services using traditional costing is O $165600. O $276000. $138000. $248400.
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- Big Mikes, a large hardware store, has gathered data on its overhead activities and associated costs for the past 10 months. Nizam Sanjay, a member of the controllers department, believes that overhead activities and costs should be classified into groups that have the same driver. He has decided that unloading incoming goods, counting goods, and inspecting goods can be grouped together as a more general receiving activity, since these three activities are all driven by the number of receiving orders. The 10 months of data shown below have been gathered for the receiving activity. Required: 1. Prepare a scattergraph, plotting the receiving costs against the number of purchase orders. Use the vertical axis for costs and the horizontal axis for orders. 2. Select two points that make the best fit, and compute a cost formula for receiving costs. 3. Using the high-low method, prepare a cost formula for the receiving activity. 4. Using the method of least squares, prepare a cost formula for the receiving activity. What is the coefficient of determination?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.)Kenkel, Ltd. 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, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (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 225,000, on account.
- Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses takes 45,000 direct labor hours and involves 1,700 parts and 115 inspections. The manufacturing of tinted glasses takes 115,000 direct labor hours and involves 1,400 parts and 450 inspections. The traditional method applies $560,000 of overhead on the basis of direct labor hours. What is the amount of overhead per direct labor hour applied to the clear glass products? A. $933.33 B. $157,500 C. $322.500 D. $402,500Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be: a. 44.00. b. 197.50. c. 241.50. d. 501.00.A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
- Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $288000; and legal support, $144000. Information on the two services is: Audit Tax Direct labor cost $50000 $100000 CPU minutes 40000 10000 Legal hours used 200 800 Overhead applied to tax services using traditional costing is $172800. $288000. $144000. $259200.Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures Estimated Overhead Cost Machine related (machine-hours) R81 600 Batch setup (setups). R387 000 General factory (direct labour-hours). R274 800 Expected Activity Activity Cost Pools Total Product X Product Y Machine related 8,000 3,000 5,000 Batch setup 10,000 2,000 8,000 General factory 12,000 7,000 5,000 Assuming that actual activity turns out to be the same as expected activity, calculate the total amount of overhead cost allocated to Product X.Active Customer Services Ltd uses a traditional activity-based costing system to assign £900,000 of committed resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel: BMAN21040 ACTIVITY Process sales orderProcess customer complaints Perform customer credit checks Required: TIME ESTIMATED COST DRIVER PERCENTAGE QUANTITY 55% 15,500 customer orders 15% 300 customer complaints 30% 2,000 credit checks 100% a) Compute the activity cost driver rates using this system.
- Bob Randall, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's Manufacturing Engineering Department. The department has the following activities: creating bills of materials (BOMs), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tools. The resource costs (from the general ledger) and the times to perform one unit of each activity are provided below. Resource Costs Activities Unit Time Driver Salaries $425,000 Creating BOMs 0.6 hr. No. of BOMs Equipment 92,000 Designing tools 3.7 hrs. No. of tool designs Supplies 43,000 Improving processes 1.1 hrs. Process improvement hrs. Total $560,000 Training employees 2.1 hrs. No. of training sessions Studying capabilities 2.1 hrs. Study hours Total machine and labor hours (at practical capacity): Machine…Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders 145000 500 orders Machine Setup Setup 319500 450 setups Machining Machine hours 1575000 125000 MH Assembly Parts 1250000 1000000 parts Inspection Inspections 325000 500 inspections If overhead is applied using activity-based-costing, the overhead application rate for ordering and receiving is?Sterling Archer Spy Agency provides independent intelligence gathering services. The agency has the following data concerning its overhead costs and its activity-based costing system: Overhead costs: Wages and salaries $400,000 Administrative expenses 150,000 Total $550,000 Distribution of resource consumption: Activity Cost Pools Intelligence Report procurement Writeups Other Total Wages and salaries 70% 25% 5% 100% Administrative expenses…