1. Calculate total direct costs and total indirect (MOH) costs. (Enter amounts in thousands)Total direct cost $_________Total indirect (MOH) cost $_______2. Assume Dwifty used a budgeted MOH rate to apply MOH costs, and the total cost applied this year is $289,000. How much did the company under-or overapply for its MOH costs?MOH costs was _______________(underapplied, overapplied, not over/underapplied by $_______________. ProductCostAmountor PeriodDirector IndirectPlastic material and springs for clips$322ProductDirectCEO's salary112PeriodNAAdvertising27PeriodNAResearch and development17PeriodNAWages for factory workers422ProductDirectUtility costs in plant69ProductIndirect ▼Plant supervisor salaries188ProductIndirectDepreciation of plant assets56ProductIndirect ▾Salaries and commissions to salespeople207PeriodNA

Direct materials and direct labor can be easily identified and charged separately. Overhead costs…

Calculate total direct costs and total indirect (MOH) costs. (Enter amounts in thousands) Total direct cost $_________ Total indirect (MOH) cost $_______

Calculate total direct costs and total indirect (MOH) costs. (Enter amounts in thousands) Total direct cost $___ Total indirect (MOH) cost $_

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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Support Department Cost Allocation—Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: Support Department 1 SupportDepartment 2 ProductionDepartment 1 ProductionDepartment 2 Number of employees 9        7        25        18        Asset value $1,150        $670        $6,230        $5,100        Department cost $20,000        $15,500        $99,000        $79,000        Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments. SupportDepartment 2 ProductionDepartment 1 ProductionDepartment 2 Support Department…
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Determine the Manufacturing Overhead Based on the given information, determine the Purchases EFS Systems undertakes its own machine maintenance. The depreciation on the equipment is P20,000 per year and operating cost is P2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Determine the Prime Cost Determine the Finished Goods, Beginning Determine the Conversion Cost Determine the Manufacturing Cost Determine the Finished Goods, Ending
Estimating costs based on behavior patterns The following informationprovides the amount of cost incurred in August for the cost items indicated. DuringAugust, 8,000 units of the firm’s single product were manufactured.Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,600Factory depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,500Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,200Production supervisor’s salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,100Computer rental expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200Maintenance supplies used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800Required:a. How much cost would you expect to be incurred for each of these itemsduring September when 9,600 units of the product are planned for production?b. Calculate the average total…
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Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. Marley's ManufacturingIncome StatementMonth Ending August 31, 2018 Dept. A Dept. B Sales $23,000 $51,000 Cost of goods sold 11,040 26,520 Gross profit $11,960 $24,480 Expenses: Utility expenses $920 $2,550 Wages expense 5,980 10,710 Costs allocated from corporate 2,300 14,280 Total expenses $9,200 $27,540 Operating income/(loss) in dollars $fill in the blank 1 $fill in the blank 2 Operating income/(loss) in percentage fill in the blank 3 % fill in the blank 4 %
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