Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $273,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $267,000 and 12,600 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied

Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $273,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $267,000 and 12,600 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied

Name: Luthan Company uses a plantwide predetermined overhead rate of $22.80
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate was basedon a cost formula that estimated $273,600 of total manufacturing overhead cost for an estimated activity level of 12,000 di

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

The following information has been extracted from the cost information system of Kevianmanufacturers ltd for the last 12 weeks in the year ended 31st December 2020 Required:a) Using the high-low cost estimation method develop a cost estimation function for Production department Overhead Cost using the Machine hours as the activity level. b) The actual Production Department Overhead Cost in week 12 from above is 963,000. Using the machine hours of 48, direct labour hours of 38 from week 12 explain which of the two cost functions developed above is more accurate. c)Calculate and interpret the coefficient of Determination (R^2) using the cost estimation function derived using the Machine hours as the activity level.
Company A recently completed and sold an order of 50 units that had the following costs: Direct materials Direct labor* (1000 hours @ P8.50) |Variable overhead (1000 hours @ P4.00) Other overhead costs** Total 1500 8500 4000 1400 15400 | *Applied on the basis of direct labor hous **Applied at the rate of 10% of variable cost The company has now been requested to prepare a bid for 150 units of the same product. If an 80% incremental unit-time learning curve is applicable, Company A's total cost on this order would be estimated at
Heath Production manufactures chairs. Several weeks ago, the company received an inquiry from Rose Limited. Rose wants to market a foldable chair similar to one of Heath’s and has offered to purchase 12 000 units if the offer can be completed in three months. The cost data for Heath’s foldable chair is as follow: Direct material $16.40 Direct labour (0.125 @ $36 per hour) 4.50 Total manufacturing overhead 20.00 Total $40.90 The normal selling price of Heath’s foldable chair is $51.00. However, Rose has offered Heath only $31.50 because of the large quantity it is willing to purchase. Rose requires a modification of the design that will allow a $4.20 reduction in direct material cost. The production manager of Heath notes that the company will incur $8400 in additional setup costs and will have to purchase $5800 special equipment to…
Barker Company produces and sells a single product with budgeted or standard costs as follows: Inputs Standards Direct materials 10 lbs at $10.00 per pound Direct labor 8 hours at $12.50 per hour Variable factory overhead 8 hours at $20.00 per hour Fixed factory overhead 8 hours at $40.00 per hour Overhead rates are based on 8,000 standard direct labor hours per month, i.e., this is the master budget denominator activity level. Desired ending inventories of materials are based on 10% of the next months materials needed. Desired ending finished goods are based on 5% of next periods budgeted unit sales. Unit Sales are budgeted as follows: January February March April 1,000 1,200 1,600 1,400 The budgeted sales price is $1000 per unit. Sales are budgeted as 80% credit sales and 20% cash sales. Past experience indicates that 60% of credit sales are collected during the month of sale, 38% are collected in the following month, and…
Dohini Manufacturing company had following 12 months of data on purchasing cost and number of purchase orders. Required: 1. Determine the high point and low point. 2. Calculate the variable rate for purchasing cost based on the number of purchase orders. (Round to nearest cent) 3. Calculate the fixed monthly cost of purchasing.(Round to nearest dollar). 4. Write the cost formula for the purchasing activity showing the fixed cost and the variable rate. 5. If Dohini manufacturing company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for the that month?(Round to nearest dollar) 6. What if Dohini manufacturing wants to estimate purchasing cost for the coming year and expects 5340 purchase orders? What will estimated total purchasing cost be? What is the total fixed purchasing cost? Why doesn't equal the fixed cost calculated in Requirement 3?(Round to nearest dollar)
Cox Electric makes electronic components and has estimated the following for a new design of one of its products. . Fixed cost-$21,000 • Material cost per unit $0.17 Labor cost per unit = $0.11 Revenue per unit $0.68 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which…
J 1 ue K Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 10 transplants under great scrutiny and at no cost to the patients with the hospital picking the expenses. The cost per hour of surgery is estimated to be $5,000. The very first transplant, just completed, required 27 hours. On the basis of research at the hospital, Beth Zion estimates that it will have an 75% learning curve. Using Table E.3, estimate the time it will take to complete: a) the 10th transplant hours (round your response to two decimal places). Learning Curve Coefficients Unit Number (N) 10 Unit Time .385 75% Total Time 5.589 Unit Time .477 80% Total Time 6.315 Unit Time .583 85% Total Time 7.116 X
What Is process planning?
MagneticCompany has made the following information available for its production facility for the current month. Fixed overhead was estimated at 19,000 machine hours for the production cycle. Actual machine hours for the period were 18,900, which generated 3,900 units. Material purchased (80,000 pieces) P314,000 Material quantity variance P6,400 U Machine hours used (18,900 hours) VOH spending variance P50 U Actual fixed overhead P60,000 Actual labor cost P40,120 Actual labor hours 5,900 Magnetic Company’s standard costs are as follows: Direct material 20 pieces @ P4 per piece Direct labor 1.5 hours @ P6 per hour Variable overhead (applied on a machine hour basis) 4.8 hours @ P2.50 per hour Fixed overhead (applied on a machine hour basis) 4.8 hours @ P3 per hour Determine the following items: h. labor efficiency variance i. actual variable overhead…
Jubelien and Joshua have joined forces to start Rosen old Lettuce Products, a processor ofpackaged shredded lettuce. Jubelien has years of food processing experience and Joshua hasextensive commercial food preparation experience. Together with the help from vendors, theycan adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag oflettuce. They think a largely manual process will have monthly fixed cost of 37,500Php andvariable cost of 1.75Php per 5-pound bag. A more mechanized process will have fixed costs of75,000Php per month with variable costs of 1.25Php per 5-pound bag. They expect to sell theshredded lettuce for 2.50Php per 5-pound bag.a. What is the break-even quantity for the manual process?b. What is the revenue at the break-even quantity for the manual process?c. What is the break-even quantity for the mechanized process?d. What is the revenue at the break-even quantity for the mechanized process?e. What is the monthly profit or loss of the…
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. 68 employees work the first shift and 28 the second. The contract price is $240 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production six days per week. When each of the two shifts works 72 hours per week, production increases to 4,200 uniforms per week but at a cost of $152 each. a. The multifactor productivity level for two shifts working 72 hours when compared to the level of the normal two shifts. did not change decreased increased
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Process Type Annualized Fixed Cost of Plant & Equip. Variable Costs (Per Unit) ($) Labor Material Energy Mass Customization $1,000,000 30 18 12 Intermittent $1,200,000 28 16 20 Repetitive $1,625,000 26 15 12 Continuous $1,960,000 25 15 10 Metters Cabinets projects an annual demand of 30,000 units for the Maxistand. The Maxistand will sell for $140 per unit. Which process type will maximize the annual profit from producing the Maxistand? What is the value of this annual profit? solve the question using Excel OM.