Green Co. uses 6 machine hours and 2 direct labor hours to produce Product A. It uses 8 machine hours and 16 direct labor hours to produce Product B. Green's Assembly and Finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much total factory overhead will be allocated to a unit of each of the two products?
Q: If a table lamp requires 2 hours of fabrication and 1 hour of assembly, the total amount of factory…
A:
Q: [The following Information applies to the questions displayed below) Patel and Sons Inc. uses a…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Emerald Ltd produces two products - the ‘Opal’ and the ‘Ruby’. Total overhead costs for the period…
A: Following is the answer of given question
Q: Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Each…
A: Overhead allocation rate is used to allocate the manufacturing overheads. It can be calculated by…
Q: Mirkle Corporation uses the following activity rates from its activity-based costing to assign…
A: Under activity based costing, overhead cost assigned to products on the basis of activity consumed…
Q: Zilong Company produces two products (A and B). Direct material and labor costs for Product A total…
A: Function Product A Product B Total overhead 1 2 hours x P10 per hour = P20 1 hour x…
Q: .If total overhead is assigned to A and B on the basis of direct labor hours, Product A will have an…
A: Hours required per unit in each function (Table 1) Products Function 1 Function 2 Function 3…
Q: Zilong Company produces two products (A and B). Direct material and labor costs for Product A total…
A: Function Product A Product B Total overhead 1 2 hours x P10 per hour = P20 1 hour x P10 per hour…
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: The Oakman Company manufactures products in two departments: Mixing and Packaging. The company was…
A:
Q: The Denmark Company estimates its factory overhead for the next period at 425,000. It is estimated…
A: solution given estimated factory overhead 425,000 Units that will be produced 500,000…
Q: Morgana Company identifies three activities in its manufacturing process: machine setups, machining,…
A: Overhead rate per activity = Estimated annual overhead cost for activity / No. of activity
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: Factory overhead also called manufacturing overhead, cost incurred during manufacturing process,…
Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and…
A: Calculation of Manufacturing cost per unit of Product A and Product B (per unit) Product A…
Q: Lymwood, Inc. produces two different products (Product A and Product X) using two different…
A: Inspection cost assigned to Product A = no. of batches x inspection cost per batch
Q: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and…
A: Activity based costing is the one of the method of costing which allocate the overhead cost to every…
Q: Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide rate…
A: 1.
Q: If the company uses the direct method of service department cost distribution, how much will the…
A: Overhead means the cost incurred indirect in factory for the production of goods. Overhead cost will…
Q: Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are…
A: Activity-based costing is a method of costing that identifies activities in business that incurs…
Q: P Company produces three types of products- product A, product B and product C. Product A requires…
A: The overhead is applied to the production on the basis of different activities performed during the…
Q: Green Company manufactures several products. Product 1 production manager reports that each product…
A: Manufacturing Overhead- It is the indirect cost of the product which includes indirect material,…
Q: Lyon Productions manufactures two products, Chevalier and Dame. Estimates for the company’s products…
A: Under Activity based costing, overhead costs are allocated to products on the basis of cost drivers…
Q: Hulsey Coffee Co. allocates factory overhead using a single plantwide overhead rate based on direct…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.…
A: All amounts are in dollar.
Q: A company manufactures a product with three models, each with different direct material costs and…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.…
A: Given, Assembly Department Sanding Department Manufacturing Overhead rate $50 per machine…
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: Factory overheads (manufacturing overheads) are the fixed costs that don’t change with the…
Q: phinx Company projected the following overhead costs and cost drivers: Overhead Item Expected…
A: calculation of overhead cost assign to job 1 are as follows
Q: ABC company manufactures two type of products product Y product X, and applies manufacturing…
A: Given that, Budgeted units of ; Product Y = 16,000 units Product X = 30,000 units Direct material…
Q: Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $316,000.…
A: Overheads are the product costs that are not directly involved in the production process, and cannot…
Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.…
A: All amounts are in dollar.
Q: Royal Bakery produces three types of products- product A product B and product C. Product A requires…
A: Following table shows the no. Of setup and hours used in it by each product Product Machine…
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: Formula: Plant wide overhead rate = Total estimated overhead / Total estimated machine hours
Q: What is the cost of each unit produced?
A: Predetermined overhead allocation: Manufacturing overhead cost is the pool of all indirect costs…
Q: Green Co. uses 6 machine hours and 2 direct labor hours to produce Product A. It uses 8 machine…
A: Solution:- Computation of total factory overhead cost for two products are as follows under:-…
Q: It takes 100,000 direct labor hours to manufacture the product. Total overhead for the product is…
A: Introduction: Traditional costing refers to the allocation of factory overhead to products based on…
Q: If the company uses the direct method of service department cost distribution, how much will the…
A: Direct Allocation Method: Cost of service departments is charged to other parts of the business…
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: Overheads are considered as fixed and common expenses that should be allocated to the products based…
Q: JimBob Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.…
A: Solution- Manufacturing OH allocated to Job 603 Assembly OH (35*10)…
Q: P Company produces three types of products- product A, product B and product C. Product A requires…
A: Overhead alludes to continuing company costs that are not directly related to the creation of goods…
Q: Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine…
A: The overhead cost is applied to the production using the predetermined overhead rate.
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Acton Company has two products: A and B. The annual production and sales of Product A is 800 units…
A: Overhead expenses allude to all circuitous costs of maintaining a business. These continuous costs…
Q: Beerfield Company manufactures product M in its factory. Production of M requires 2 pounds of…
A: Direct material cost = 2 pounds×$10 per pound =$20
Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.…
A: Journal entry refers to recording and classifying business transactions into books of accounts…
Q: efferson, Inc. produces two different products (Product 5 and Product Z) using two different…
A: Answer is 34%
Q: Hulsey Coffee Co. allocates factory overhead using a single plantwide overhead rate based on direct…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Lynwood, Inc. produces two different products (Product A and Product X) using two different…
A: An activity cost driver is a concept that comes under the Activity Based Costing (ABC) system.…
Q: The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two…
A: Correct option is A. $80.04 Explanation: Total overhead cost for Dinks : Overhead of fabrication…
Step by step
Solved in 2 steps
- 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?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?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?
- Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles 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?
- Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
- Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursGreen Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursThe 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?