uses the direct method and the producing departments using the following
Q: Classify the following activities as per their respective categories under quality cost or as per…
A: The value chain means the process or activities by which a company adds value to an article,…
Q: Distinguish between continuous, batch, and made-to-order processing.
A: In a batch processing, a sequence of steps are followed in a defined order. Continuous processing…
Q: vironmentally- ke the product:
A: The correct option is 4.
Q: What are unit-level, batch-level, product-level, customer-level, and organization-sustaining…
A: ABC method: ABC method is activity based cost accounting. It's the new method of accounting where…
Q: Allocate the support department costs to the production departments using the direct method.
A: Solution:- Janitorial department total cost = $310,000 Total square of production department…
Q: Classify the following cost drivers as structural, executional, or operational.
A: Classification of cost derives: Classification 0f the given cost drivers as structural, executional,…
Q: Identify the following users as either an internal (I) or an external (E) user. Production…
A:
Q: Distinguish between customer-response time and manufacturing cycle time.
A: Customer response time: Customer response time is the time lag between the receipt of an order and…
Q: Define and explain the cost management information system's two major subsystems.
A: Cost management information system refers to the system which is related with the manufacturing the…
Q: Assigning indirect costs to departments is completed by ________.
A: Indirect costs are those costs that are not directly related with the production or selling. These…
Q: explain the requirements for segment reporting, and calculate and interpret segmentratios;
A: Definition: Segment reporting: Segment reporting refers to the process of preparing accounting…
Q: iscuss under what condition it would be appropriate to use a process costing system
A: Solution Concept Process costing system Process costing is a system of costing where the cost of is…
Q: Determine the equivalent units of production with respect to direct materials and conversion.
A:
Q: prepare a rea model depicting the issuance of raw materias into the manufacturing process. identify…
A:
Q: utilizes a computer system to estimate production needs so that required resources are available…
A: Answer - 1. Correct Option is A - Flexible. A flexible manufacturing system is a highly automated…
Q: Describe the use of process costing.
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: activity-based costing system.
A: Activity-based costing system is a cost accounting system in which overheads are grouped into cost…
Q: explain the cost management information system's two major subsystems
A: The cost management information system's primary goal is to generate outputs for internal users. To…
Q: List three types of industries that would likely use process costing.
A: Process costing: Process costing is a method of costing that traces and accumulates direct costs,…
Q: What are the major functions performed by the OE/S process? Explain each function.
A:
Q: need distrebution the cost of service centers to the production center.
A: Overhead is the cost that is directly involved in the production process of the company. It is…
Q: as a Cost Center a Line It Production Li
A: Line item budget Actual variance % variance Production Line wages 20,000…
Q: process productivity
A: Process productivity = Good units produced/Processing time(total hours)
Q: Analyze process costing with multiple departments
A: Process costing is a technique of costing in which the costs are directly traced to the…
Q: e specifications. The product-costing syst ry (direct materials) and a single indirect Dasses…
A: Equivalent unit statement as,
Q: Describe the key steps of resource assignment and cost assembly via eTakoff and Sage Estimating.
A: Sage Estimating is an ERP tool that gives you the flexibility, speed, and accuracy to generate…
Q: List, describe, and give an example of each of the four different types of production processes.
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: Explain why some production costs must be assigned to products through an allocation process.
A: Production costs: These are the costs incurred on product manufacturing or delivering services by…
Q: Identify and giveexamples of each of thethree basic manufacturingcost categories.
A:
Q: Why do we require product, task order, and process cost data?
A: The Answer :
Q: What are the four steps to developing an activity-based costing system?
A: Activity-based costing (ABC): Activity based costing (ABC) framework was created to manage the…
Q: Describe three different purposes for computing products costs
A: Product Cost - Product Cost is the cost incurred by the organization for the product of the entity.…
Q: Define Overhead Allocation.
A: Activity-Based Costing: It is a method that helps in finding the activities performed by a company…
Q: Give three examples of industries that use process-costing systems.
A:
Q: Prepare an REA model depicting the issuance of raw materials into the manufacturing process.…
A: The REA model for manufacturing process is given below as, For any of the manufacturing process, the…
Q: Define Units-of-production method
A: The units-of-production method is the method of depreciation based on the total number of units…
Q: Define units-of-production (UOP) method
A: Every asset has a certain life and capacity of production. After this period, assets become useless.…
Q: iscuss the Step by Step Procedure involve in process Costing including the content of Production…
A: In accounting, process costing is a method of allocating production costs to units of output.…
Q: Define and explain the cost management information system's two major subsystems.
A: The Cost Accounting Information System (CAIS) is a financial accounting system that computes and…
Step by step
Solved in 2 steps
- Compute the total job cost for each of the following scenarios: a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled 5,000 and that the direct labor cost totaled 3,200. b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is 10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, and the number of direct labor hours totaled 250. c. If the machine hour method is used in applying factory overhead and the predetermined rate is 12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, the direct labor hours were 250 hours, and the machine hours were 295 hours.The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Box Springs estimates there will be four orders in the next year, and those jobs will involve: What is the total cost of the jobs?
- A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
- Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursMinor 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. 274,400
- If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?