1. Fran's Fleet (legal business name of #BN790997295) operates a fleet of passenger vans that shuttlespassengers from one pick up location in a small town to three locations: the airport, the train stationand the theatre. The company uses a traditional costing system in which it applies overhead costs to itsdifferent routes using a predetermined company-wide overhead rate based on kilometers driven.Information about the three routes is provided below.Train Station$4.11$4.49Theatre$5.93$4.8259.43Airport$4.78Direct materials per passenger per tripDirect labour per passenger per tripKilometers per passenger per trip$2.0035.7047.92The company's estimated total overhead cost for the year is $948,000 and the company's estimate totalkilometers for the year is 130,000 KM. How much overhead would be applied to a passenger on a tripto the theatre? Round to two cents and enter your answer with no dollar signs or commas.Your Answer:Answer

The overhead application is the process by which estimated overhead cost not the actual cost is…

Fran's Fleet (legal business name of #BN790997295) operates a fleet of passenger vans that passengers from one pick up location in a small town to three locations: the airport, the train station and the theatre. The company uses a traditional costing system in which it applies overhead costs to its different routes using a predetermined company-wide overhead rate based on kilometers driven. Information about the three routes is provided below. tics Airport $4.78 $2.00 35,70 Train Station Theatre Direct materials per passenger per trip Direct labour per passenger per trip Kilometers per passenger per trip $5.93 $4.11 $4.49 47.92 $4.82 59.43 The company's estimated total overhead cost for the year is $948,000 and the company's estimate total kilometers for the year is 130,000 KM. How much overhead would be applied to a passenger on a trip to the theatre? Round to two cents and enter your answer with no dollar signs or commas. Your Answer: Answer

Fran's Fleet (legal business name of #BN790997295) operates a fleet of passenger vans that passengers from one pick up location in a small town to three locations: the airport, the train station and the theatre. The company uses a traditional costing system in which it applies overhead costs to its different routes using a predetermined company-wide overhead rate based on kilometers driven. Information about the three routes is provided below. tics Airport $4.78 $2.00 35,70 Train Station Theatre Direct materials per passenger per trip Direct labour per passenger per trip Kilometers per passenger per trip $5.93 $4.11 $4.49 47.92 $4.82 59.43 The company's estimated total overhead cost for the year is $948,000 and the company's estimate total kilometers for the year is 130,000 KM. How much overhead would be applied to a passenger on a trip to the theatre? Round to two cents and enter your answer with no dollar signs or commas. Your Answer: Answer

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 24E: Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs....

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Johnson Gardening Company provides lawn and garden services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Total Activity Mowing/trimming $150,750 12,250 hours Job support 25,725 1,800 jobs Client support 7,250 250 clients Other 100,000 Not applicable Total $283,725 The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One particular client, the Guzman family, requested 26 jobs during the year that required a total of 150 hours of gardening. For these services, the client was charged $5,000.Required:a.…
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $75,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials $ 10,300 Work in process $ 4,500 Finished goods $ 8,200 During the year, the following transactions were completed: Raw materials purchased on account, $167,000. Raw materials used in production, $149,000 (materials costing $126,000 were charged directly to jobs; the remaining materials were indirect). Costs for employee services were incurred as follows:…
Use this information for Miramar Industries to answer the question that follow.Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities—production setup, materials handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Activity Cost Activity Base Production setup $250,000 Number of setups Material handling 150,000 Number of parts General overhead 80,000 Number of direct labor hours Each product's total activity in each of the three areas are as follows: Product A Product B Number of setups 100 300 Number of parts 40,000 20,000 Number of direct labor hours 8,000 12,000 What is the activity rate for materials handling? a.$3.75 per part b.$1.50 per part c.$7.50 per part d.$2.50 per part