laseema CỖ. ures laser printers. It has outlined the following overhead cost drivers. (Refer to image) Naseema Co. hac an order for 700 laser printers. Following is a list of production
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Manufacturing overhead cost - it is the total indirect cost incurred during the manufacturing of a…
Q: Etona company has two service departments and three producing departments. The following data was…
A: Step Method of cost allocation is a process of allocating costs of service department to the…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: In the traditional cost method, the manufacturing overhead cost is distributed on the basis of…
Q: Kant Mfg uses process costing for their production. In September, they had the following production…
A: Equivalent units of products concept came in to existence when some units are not fully completed at…
Q: Candice Company uses activity-based costing to determine the unit product costs for external…
A:
Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…
A: Standard costing is a very important technique in setting out budgets for the all the costs and…
Q: Activity rates from Hilliard Corporation's activity-based costing system are listed below. The…
A: Under activity based costing, Activity rates are calculated for each activity cost pool using the…
Q: Buena Company uses activity-based costing to determine the unit product costs for external reports.…
A: Calculation of overhead cost per unit of BarG &Bar S:: Particulars. BarG. Bar S..…
Q: For the next two items. Rose Corporation has the following overhead costs and cost drivers. Direct…
A: Total estimated overhead costs = ordering and receiving + machine setup + machining + assembly +…
Q: Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour.…
A: The overhead is applied to the production on the basis of predetermined overhead rate.
Q: ntps Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Activity based costing: It is a method for allocating overhead cost to products based on consumption…
Q: Castform Microcircuit Manufacturing Inc uses direct labor cost (DLP) for its overhead rate. The…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the…
A: answer are as follows
Q: COVID 19 Co has provided the following data from its activity-based costing system: Activity Cost…
A: Cost per activity = Total cost / Total activity Assembly = $1,443,140/59,000 hours = $24.46…
Q: The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a…
A: Predetermined overhead rate is defined as the rate that is used to apply the manufacturing overhead…
Q: Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $25 per…
A: The income statement is prepared to find net income or losses incurred during the period.
Q: Swirlix Semicon Manufacturing Inc uses machine-hours (MHs) for its overhead rate. The production…
A: Applied overhead is the amount of overhead allocated to the actual activity using predetermined…
Q: XYZ Company uses activity-based costing to determine the unit product costs for external reports.…
A: Using activity costing, the overhead is applied to the production on the basis of various…
Q: Bearington Enterprises uses an activity-based costing system to assign costs in its auto-parts…
A: Particulars Amount Material costs $6000 Materials (500 move x $5) $2500 Assembling (300 hours…
Q: How do I find the fixed total overhead using absorption costing? Milton Company reports the…
A: This question deals with the calculation of total fixed overhead cost of this year. As we understand…
Q: Coat-All Paint Company used a predetermined overhead allocation rate to allocate $80,000 and…
A: Given, Costs allocated to Coloring = $80,000 Costs allocated to Mixing = $50,000
Q: In December, Davis Company had the following cost flows: Molding Department Grinding Department…
A: Under process accounting system, each department has its own Work In Process Account. The cost is…
Q: FAITH Manufacturing Corporation has a traditional costing system in which it applies manufacturing…
A: ABC Method is a method of allocating overhead cost to a particular product in this method the cost…
Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…
A: Standard hours per unit: 2 Hours Standard rate: $6.00 Standard cost: $12.00 Actual Fixed overhead…
Q: Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are…
A: Overhead application rate for ordering and receiving = Estimated overhead cost for Ordering and…
Q: Compute for the total Factory overhead cost of Department Hif the company uses the direct method and…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Candice Company uses activity-based costing to determine the unit product costs for external…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: In December, Davis Company had the following cost flows: Molding Department Grinding…
A: Journal Entry is represented as below:
Q: MontanaTechnology, Inc. has a job-order costing system. The company uses pre- determined overhead…
A: Overhead rate is the rate at which overhead costs are absorbed on the basis of a specific cost…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Traditional costing method is different from ABC costing method whereby cost driver /activity base…
Q: Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts…
A: Manufacturing cost: The manufacturing cost includes all the expenses relating to the manufacturing…
Q: ompute for the total Factory overhead rate of G Department, if the company uses the step method in…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Superior Micro Products uses the weighted-average method in its process costing system. Data for the…
A: The weighted-average method includes costs in beginning inventory and current period costs to…
Q: Your Company uses a predetermined overhead rate in applying overhead to production orders on a labor…
A: Predetermined overhead rate (Department A) = Manufacturing overhead / Direct labor cost =…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Solution: Total estimated overhead costs = $85,557 + $67,616 = $153,173 Budgeted direct labor hours…
Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…
A: Manufacturing overhead cost is applied to product to convert raw materials to finished product.
Q: KRAFT ‘R’ US does customized, hand-crafted memorabilia, in which each batch of items is a job. The…
A: Answer a: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: 4.90 P63.70 Direct labor per unit P20.80 P62.40 Direct labor-hours per unit 0.80 2.40…
A: GRACE Manufacturing Corporation traditional costing For scheming the cost exploitation the normal…
Q: Maria Am Corporation uses the weighted-average method in its process costing system. The Baking…
A: Solution: Cost reconciliation is statement that provides reconciliation of assignment of total cost…
Q: Your Company uses a predetermined overhead rate in applying overhead to production orders on a labor…
A: The main duty of the cost accountant will be to assign the overhead cost to the products. While…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Total Manufacturing Overhead Rate = Total Overhead Cost / Total Direct Labor Hours
Q: In December, Davis Company had the following cost flows: Molding Department Grinding Department…
A: Journal Job Order Costing Journal is an account prepared to record the transaction at their…
Q: SQU Corporation provides the firm's costing data: Selling Price (OMR) Direct Labour per Unit (OMR)…
A: Activity based costing method includes elimination of unnecessary costs by using cost drivers.
Q: Company uses activity-based costing for its product Royale and Elegance. The total estimated annual…
A: Activity based costing is the method of allocation of overhead to the product or services. Under…
Q: Sultan Company uses an activity-based costing system. At the beginning of the year, the company made…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…
A: Actual units = 24,190 Standard ghours per unit = 2 Standard rate per hour = $6.00
Q: Reliability Co. makes two products. Regular and Supreme. Overhead costs of machining is $2.000.000…
A: Activity-based costing is a method of assigning indirect costs to products and services by…
Q: Requirement: Compute for the Factory overhead rate of Department G if the company uses the direct…
A: Factory overhead is the cost involved in production activities of a manufacturing firms which…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Continuation:
Using activity-based costing, applied factory overhead for the 700 laser printers order based on the number of invoices is calculated to be: *
a. P7,800
b. P10,500
c. P150
d. P21,600
Step by step
Solved in 4 steps
- 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.Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
- Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- San Mateo Optics, Inc., specializes in manufacturing lenses for large telescopes and cameras used in space exploration. As the specifications for the lenses are determined by the customer and vary considerably, the company uses a job-order costing system. Manufacturing overhead is applied to jobs on the basis of direct labor hours, utilizing the absorption- or full-costing method. San Mateos predetermined overhead rates for 20x1 and 20x2 were based on the following estimates. Jim Cimino, San Mateos controller, would like to use variable (direct) costing for internal reporting purposes as he believes statements prepared using variable costing are more appropriate for making product decisions. In order to explain the benefits of variable costing to the other members of San Mateos management team, Cimino plans to convert the companys income statement from absorption costing to variable costing. He has gathered the following information for this purpose, along with a copy of San Mateos 20x1 and 20x2 comparative income statement. San Mateo Optics, Inc. Comparative Income Statement For the Years 20x1 and 20x2 San Mateos actual manufacturing data for the two years are as follows: The companys actual inventory balances were as follows: For both years, all administrative expenses were fixed, while a portion of the selling expenses resulting from an 8 percent commission on net sales was variable. San Mateo reports any over-or underapplied overhead as an adjustment to the cost of goods sold. Required: 1. For the year ended December 31, 20x2, prepare the revised income statement for San Mateo Optics, Inc., utilizing the variable-costing method. Be sure to include the contribution margin on the revised income statement. 2. Describe two advantages of using variable costing rather than absorption costing. (CMA adapted)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.)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?
- Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.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?The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?