Vernon Manufacturing Company produced 2,300 units of inventory in January, Year 2. It expects to produce an additional 9,700 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $70 and $70 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary. Depreciation on equipment Utilities Rental fee on manufacturing facilities. $ 6,400 186,000 129,000 33,000 239,600

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Chapter2: Basic Cost Management Concepts
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Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Vernon Manufacturing Company produced 2,300 units of inventory in January, Year 2. It expects to produce an additional 9,700 units
during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials
and direct labor costs are $70 and $70 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs
during the year 2 accounting period.
Production supplies.
Supervisor salary
Depreciation on equipment
Utilities
Rental fee on manufacturing facilities
$ 6,400
186,000
129,000
33,000
239,600
Required
a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is
number of units.
b. Determine the cost of the 2,300 units of product made in January.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver
is number of units. (Round your answer to 2 decimal places.)
Predetermined overhead rate
per unit
Required A
Required B >
Transcribed Image Text:Vernon Manufacturing Company produced 2,300 units of inventory in January, Year 2. It expects to produce an additional 9,700 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $70 and $70 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies. Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $ 6,400 186,000 129,000 33,000 239,600 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,300 units of product made in January. Complete this question by entering your answers in the tabs below. Required A Required B Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. (Round your answer to 2 decimal places.) Predetermined overhead rate per unit Required A Required B >
Vernon Manufacturing Company produced 2,300 units of inventory in January, Year 2. It expects to produce an additional 9,700 units
during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials
and direct labor costs are $70 and $70 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs
during the year 2 accounting period.
Production supplies
Supervisor salary
Depreciation on equipment
Utilities
Rental fee on manufacturing facilities
Required
a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is
number of units.
b. Determine the cost of the 2,300 units of product made in January.
Complete this question by entering your answers in the tabs below.
$ 6,400
186,000
129,000
33,000
239,600
Required A Requited B
Determine the cost of the 2,300 units of product made in January.
Indirect overhead costs
Direct materials
Direct labor
Total
Allocated
Cost
< Required A
Transcribed Image Text:Vernon Manufacturing Company produced 2,300 units of inventory in January, Year 2. It expects to produce an additional 9,700 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $70 and $70 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,300 units of product made in January. Complete this question by entering your answers in the tabs below. $ 6,400 186,000 129,000 33,000 239,600 Required A Requited B Determine the cost of the 2,300 units of product made in January. Indirect overhead costs Direct materials Direct labor Total Allocated Cost < Required A
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