Acitelli corporation, which applies manufacturing overhead on the basis of machine hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead…………….. $357,000 Estimated machine hours………………………. 8,500 Actual manufacturing overhead………………… $358,000 Actual machine hours…………………………… 8,560 The estimates of the manufacturing overhead and of machine hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year
Q: he business is very competitive, however, and Bubba, the owner, has re retain customers who…
A: Breakeven point is a point where there is no profit or loss. It is the point where fixed cost equals…
Q: Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report:…
A: Return on equity (ROE) gauges a company's profitability in relation to the equity held by its…
Q: During the year Marija had employment income of $50, 000, property income of $5, 000, a business…
A: Total Income: Employment income = $50,000Property income = $5,000Income from RRSP withdrawal =…
Q: A company started the year with $400 of supplies. During the year the company purchased additional…
A: Asset is defined as any resource or item that assists in attracting income to the owner. Each asset…
Q: There were 2,400 units in ending work in process inventory that were 100% complete with regard to…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: did you get equity
A: Equity is the difference between the total assets less total liabilites. It is the shareholders net…
Q: On 1/1/2020, ABC Corporation balance sheet included the following accounts: Patents $100,000, Bonds…
A: Since XYZ acquired 100% of all assets.ParticularsAmount ($)Patents100000Less : Bonds Payable40000Net…
Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: orge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an…
A: The objective of the question is to calculate the marginal tax rate for Jorge and Anita, a married…
Q: Customer-Level Planning 7-Eleven operates a number of convenience stores worldwide. Assume that an…
A: Contribution margin ratio :— It is calculated by dividing contribution margin per unit by selling…
Q: Logan Products has two production departments-assembly and finishing. These are supported by two…
A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…
Q: The Tech Student Government Association (SGA) is selling t-shirts to create an "orange effect" for…
A: The question is based on calculating the profit contribution net of all the costs incurred by…
Q: Ace Co. issued 1,000 shares of its $10 par value common stock for $15 per share in cash How should…
A: The Cash Flow Statement is summary of cash receipts amd cash payments. There are three activities in…
Q: Problem 14-78 Computing Selling Price and Bond Interest Revenue- Effective Interest and…
A: The investment in bonds results in interest revenue. The company can make investments in bonds. The…
Q: For all the following cases, assume that taxable income does not include any dividend income or…
A: Answer:- The term "taxation" encompasses all forms of mandatory levies, such as income, estate and…
Q: Kim works at a sports store and needs to determine the selling price for running shoes. The running…
A: The gross margin is calculated as the difference between the sales and cost of goods sold. The…
Q: Mills Corporation acquired as a long-term Investment $260 million of 7% bonds, dated July 1, on July…
A: The amortized cost method is an accounting approach used to measure the value of a bond investment…
Q: Widget Widget Tek Inc.'s original accountant accepted a position with another firm and left in early…
A: Last in First Out ( LIFO )method is where goods purchased at the latest date are sold first. In…
Q: Required Information [The following information applies to the questions displayed below.] Delicious…
A: The property is an asset for the company. The company uses assets to generate revenues. The company…
Q: In a pre-2009 business combination, Acme Company acquired all of Brem Company's assets and…
A: In a pre-2009 business combination, Acme Company acquired all of Brem Company’s assets and…
Q: Assume that RamCo applies overhead to jobs based on direct labor cost. Job A1 was started and…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a…
A: Partnership means where two or more person comes together to form the business and share profit and…
Q: Fill in the blanks in the following separate income statements a through e. Sales Cost of goods sold…
A: Lets understand the basics.Gross profit means the profit earned by selling the goods without…
Q: Yosemite Corporation has an outstanding debt of $10.1 million on which it pays a 6 percent fixed…
A: The outstanding debt refers to the total amount of debt that Yosemite Corporation currently owes. In…
Q: Allocate service department costs to Training, Independent, and Commercial using the reciprocal…
A: The reciprocal Method is one of the methods of allocating service department costs to the other…
Q: Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The…
A: Overhead is the amount of cost incurred by the entity on the making of the goods. It is allocated to…
Q: Total factory labor costs related to factory workers for Ivanhoe Company during the month of January…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: [The following information applies to the questions displayed below.] Delicious Dave's Maple Syrup,…
A: Corporation -A business organization that is a separate legal entity—that is, an identity apart…
Q: Crane Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the…
A: In the accounting books of the business organizations the journal entry served as a record of its…
Q: Listed below are the transactions that affected the shareholders' equity of Branch-Rickie…
A: The stockholder's equity section is a section of a company's balance sheet that shows the company's…
Q: 1. You plan to invest $10,000 in a general partnership. There will be four other general partners,…
A: In General partnership , the liability of partners is unknown, uncertain and unlimited. Irrespective…
Q: White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On…
A: A journal entry is a written record made by businesses or individuals to keep track of their…
Q: Laker Incorporated's fiscal year-end is December 31, 2024. The following is an adjusted trial…
A: When an accounting period comes to a conclusion, journal entries known as closing entries are made…
Q: A coal mine cost $1,005,000 and is estimated to hold 52,000 tons of coal. There is no residual…
A: Deprecation or depletion refers to the wear and tear effect on cost of an asset. It means the loss…
Q: The following information was taken from the personal records of Justin Knight on May 31, 2021.…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per…
A: Break Even point is a level/ situation at which the company's revenue is only sufficient to cover…
Q: Problem 14-10AB (Algo) Effective Interest: Amortization of bond premium LO P5 Ellis Company issues…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds…
Q: Matching question: select the most appropriate concept for each of the following statement. The…
A: The matching concept in accountancy refers to the principle of matching expenses with revenues in…
Q: Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 16,800 shares of common…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub parts only,…
Q: The salespeople at Metlock, a notebook manufacturer, commonly pressured operations managers to keep…
A: Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per cost…
Q: Which of the following statements are correct? Fund accounting segregates financial resources with…
A: Fund Accounting: Fund accounting is an accounting method that non-profit organizations use to…
Q: A sporting equipment store expects to purchase $8,500 of ski boots in October. The store had $2,500…
A: Cost of goods sold is the total cost of units sold during the period. It is calculated as beginning…
Q: Required information Use the following information for the Problems below. (Algo) [The following…
A: Product Costs: Expenses directly related to the creation of goods or services are known as product…
Q: Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job…
A: The gross profit is calculated as the difference between the sales and cost of goods sold. The…
Q: Required information [The following information applies to the questions displayed below.] At the…
A: Finished Goods Inventory: The whole stock that is offered for sale to clients and may be delivered…
Q: The amount of federal income taxes that you are required to pay is based on your filing status, your…
A: Taxable income refers to the income on which the taxpayer is liable to pay the desired tax as stated…
Q: Sabas Company has issued and outstanding 45,000 shares of $100 par, 5% preferred stock and 110,000…
A: Dividend per share indicates the amount of dividend allocated to one unit or share either preferred…
Q: Calculating Capitalized Interest Kit Company borrows $6 million at 12% on January 1, 2019,…
A: Capitalized interest is the amount that is unpaid as the interest amount on the principal loan…
Q: Selected financial data regarding current assets and current liabilities for Queen's Line, a…
A: Current ratio is the ratio between total current assets to total current liabilities. It is…
Q: By the end of December, Green Company has completed work, earning $4,500. Green company has neither…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Acitelli corporation, which applies manufacturing
Estimated manufacturing overhead…………….. $357,000
Estimated machine hours………………………. 8,500
Actual manufacturing overhead………………… $358,000
Actual machine hours…………………………… 8,560
The estimates of the manufacturing overhead and of machine hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year
Step by step
Solved in 3 steps with 1 images
- 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. $68,6001)Learned Corporation has provided the following information:Cost perUnitCost per PeriodDirect materials $ 5.00Direct labor $ 4.25Variable manufacturing overhead $ 1.85Fixed manufacturing overhead $ 35,000Sales commissions $ 0.70Variable administrative expense $ 0.60Fixed selling and administrative expense $ 9100Required:a. For financial reporting purposes, what is the total amount of product costsincurred to make 7000 units?b. For financial reporting purposes, what is the total amount of period costsincurred to sell 7000 units?c. If the selling price is $23.80 per unit, what is the contribution margin per unitsold? (Round your answer to 2 decimal places.)d. If 8000 units are produced, what is the total amount of direct manufacturingcost incurred?e. If 8000 units are produced, what is the total amount of indirect manufacturingcosts incurred?a. Total product (manufacturing) costb. Total period (manufacturing) costc. Contribution margin per unitd. Total direct manufacturing coste. Total…Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $252,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $265,000 and 22,200 hours, respectively. 1. Compute over- or underapplied overhead. 2a. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?
- Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $252,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $265,000 and 22,200 hours, respectively. Required: 1. Compute over- or underapplied overhead. 2a. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?The following particulars are extracted from the records of a company. Particulars Product A Product B Sale price per unit OMR 100 OMR 240 Consumption of material 4 kg 6 kg Material cost OMR20 OMR 30 Direct labour cost 30 20 Direct expenses 10 12 Machine hours used 6 4 Fixed overheads per unit OMR 10 OMR 20 Variable overheads per unit 30 40 Direct labour per hour is OMR 10. Comment on the profitability of eachproduct [both use same raw material] when, I] total sales potential in unitsis limited II] total sales potential in value is limited III] raw material is in short supply IV} production capacity [in terms of machine hours] is limited.Assuming rawmaterial asthe key factor, availability of which is 20,000 kg andmaximumsales potential of each product being 7000 units, find out the product mix which will yield maximum profits.The management of Casablanca Manufacturing Corporation believes that machine- hours is an appropriate measure of activity for overhead cost Shown below are machine hours and total overhead cost for the past six months: Machine- hours Overhead Cost Jan 150,000 P339,000 Feb 140,000 P328,000 Mar 160,000 P350,000 Apr 130,000 P319,500 May 170,000 P362,500 Jun 200,000 P400,000 Assume that the relevant range included all of the activity levels mentioned in this problem. If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
- Subject: Cost management & accounting MCQs: 1) Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unitFixed costs: Marketing and administrative $ 400,000 per periodManufacturing overhead $ 200,000 per periodVariable costs: Marketing and administrative $ 50 per unitManufacturing overhead $ 80 per unitDirect labor $ 100 per unitDirect materials $ 200 per unitWhat is the total manufacturing cost per unit? a) $380 b) $480 c) $730 d) $430 2) Vegas Company has the following unit costs: Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?…XYZ Inc. manufactures a component D12, and two main products F45 and P67. The following details relate to each of these items: D12 D45 P67 Selling price ? 146 159 Material cost 10 15 26 Component D12 (bought-in price) ? 25 25 Direct labour 5 10 15 Variable overheads 6 12 18 Total variable cost per unit 21 62 84 Fixed overhead costs: P per annum P per annum P per annum Avoidable* 9,000.00 18,000.00 40,000.00 Non-avoidable 36,000.00 72,000.00 160,000.00 Total 45,000.00 90,000.00 200,000.00 * The avoidable fixed costs are product-specific fixed costs that would be avoided if the product or component were to be discontinued. 1. Assuming that the annual demand for component D12 is 5,000 units and that XYZ Inc. has sufficient capacity to make the component itself, the maximum price that should be paid to an external supplier for 5,000 components per year is 2. Assuming that component D12 is bought from an external supplier for P25.00 per unit, the number of units…The following data relates to the operations of company A; direct material cost per unit- ghc5, direct labour cost/unit- ghc20 @ ghc2/hour, indirect production expense is made up of- depreciation- 50000, indirect material- ghc30000, and indirect labour- ghc20000. The company plans to produce 5000units and absorb overhead based on direct labour hours. What is the cost per unit? A. Ghc45 B. Ghc40 C. Ghc35 D. Ghc30 Reset Selection
- Company XYZ uses direct labor hours to allocate its manufacturing overhead. Manufacturing overhead was estimated to be $410,000 for the year. Actual manufacturing overhead was $415,000 and actual labor hours were 22,000. The estimated direct labor hours for the year was 20,000. The amount of manufacturing overhead applied to production would be: Select one O a. $372,727 b. $451,000 C $462,000 O a d.5410,000 O e None of the answers givenSpates, Incorporated, manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product H2 200 7.0 1,400 Product E0 200 6.0 1,200 Total direct labor-hours 2,600 The company’s expected total manufacturing overhead is $271,468. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)Betty Company Ltd manufactures two products, XO and X1. Estimates for the company’s products for next year are provided below: XO X1 Estimated production volume 4 000 3 000 Direct material cost $70 / unit $95 / unit Direct labour per unit 2 hours @ $25 / hour 3 hours @ $25 / hour Betty’s estimated overhead of $1 600 000 can be identified with three major activities: order processing ($260 000), machine processing ($1 040 000) and product inspection ($300 000). These activities are driven by number of orders processed, machine hours, and inspection hours respectively. Estimated activity levels for the next year are as follows: XO X1 Total Orders processed 400 600 1000 Machine hours 38 000 42 000 80 000 Inspection hours 8 000 16 000 24 000 Required: Assuming that Betty Company Ltd uses activity-based costing to apply overhead to production, calculate the unit manufacturing costs of the XO and X1…