Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Amount $25,000 $22,000 $18,000 $16,000 Cost Driver Setup hours Number of inspections Number 900 Inspection Maintenance 400 Machine hours 9,800 Materials handling Number of moves 200 The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 Item Number of units Direct materials cost Direct labor cost Machine hours 750 610 Direct labor hours 595 475 Number of material moves 44 17 Number of setup hours Number of inspections 72 39 36 21

Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Amount $25,000 $22,000 $18,000 $16,000 Cost Driver Setup hours Number of inspections Number 900 Inspection Maintenance 400 Machine hours 9,800 Materials handling Number of moves 200 The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 Item Number of units Direct materials cost Direct labor cost Machine hours 750 610 Direct labor hours 595 475 Number of material moves 44 17 Number of setup hours Number of inspections 72 39 36 21

Name: Hillcrest Publishing Co. established the following cost pools for 201
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Description: Hillcrest Publishing Co. established the following cost pools for 2018 support costs:Cost PoolMachine setupInspectionCost DriverSetup hoursNumber of inspectionsAmountNumber$25,000$22,000$18,000$16,000900400MaintenanceMachine hours9,800Materials hand

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Amount $25,000 $22,000 $18,000 $16,000 Cost Driver Setup hours Number of inspections Number 900 Inspection Maintenance 400 Machine hours 9,800 Materials handling Number of moves 200 The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 610 Item Number of units Direct materials cost Direct labor cost Machine hours 750 Direct labor hours 595 475 Number of material moves Number of setup hours Number of inspections 44 17 72 39 36 21 (1) Determine the unit cost of Job #60 using machine hrs. to allocate all support costs: $
Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Amount $25,000 $22,000 $18,000 $16,000 Cost Driver Setup hours Number of inspections Number 900 Inspection Maintenance 400 Machine hours 9,800 200 Materials handling Number of moves The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 Item Number of units Direct materials cost Direct labor cost Machine hours 750 610 Direct labor hours 595 475 Number of material moves 44 17 Number of setup hours Number of inspections 72 39 36 21 Determine the unit cost of Job #70 using activity based costing: $
analysis using activity-based costing (ABC). The management accountant accumulates the following information about overhead for the year ended December 31, 2019. Activity Cost Pools Cost Drivers Estimated Expected Use of Overhead Cost Drivers Purchasing Number of $1,200,000 40,000 orders Machine setups Number of 900,000 18,000 setups Machine hours Machining Quality Control 4,800,000 700,000 120,000 28,000 Number of inspections The cost drivers used: Cost Drivers TRI-X Product Purchase orders Machine setupS Machine hours Inspections 17,000 5,000 75,000 11,000 Required: 1. Calculate the activity rates for each of the overhead items using the four cost drivers. 2. Using the rates in (1) determine the unit cost for TRI-X 3. Calculate the gross profit of each model of TRI-X based on ABC costings and recommend whether or not TRI-X should be discontinued.
The centrepiece of a job-costing system is the: A)Job-cost sheet B)Materials requisition form C)Budgeted overhead rate D)Labor time ticket The following data relates to Bermuda Company for the year 2016 Estimated manufacturing overhead cost $240,000 Estimated direct labor cost $300,000 Estimated direct labor hours $ 30,000 Actual manufacturing overhead cost $289,000 Actual direct labor costs $315,000 Actual direct labor hours $ 33,000 Allocation base direct labor hours Manufacturing overhead allocated for 2016 is: A)$450,450 B)$264,000 C)$252,000 D)$220,500
Using the step method, what is the factory overhead rate of the cutting department? Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Area Labor Hrs Maintenance Security Cutting Assembly P129,000 105,000 416,000 380,000 2,900 1,100 2,000 1,600 Occupied 1,200 1,500 1,900 3,200 The maintenance costs are allocated based on estimated labor hours and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate. P10.54 P8.32 O P20.35 P10.43
For the year ended December 31, 2022, the job cost sheets of Blossom Company contained the following data. JobNumber Explanation DirectMaterials DirectLabor ManufacturingOverhead TotalCosts 7640 Balance 1/1 $20,000 $19,200 $23,040 $62,240 Current year’s costs 24,000 28,800 34,560 87,360 7641 Balance 1/1 8,800 14,400 17,280 40,480 Current year’s costs 34,400 38,400 46,080 118,880 7642 Current year’s costs 46,400 44,000 52,800 143,200 Other data: 1. Raw materials inventory totaled $12,000 on January 1. During the year, $112,000 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $69,600 and Job No. 7639 for $73,600. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Job Nos. 7638, 7639, and 7641 were sold on account for $424,000. 5. Manufacturing overhead incurred on account totaled…
Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturing overhead costs using direct manufacturing labor costs. Creative Solutions provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2019 Actual Results for 2019 $2,000,000 $1,900,000 $1,500,000 $1,450,000 $2629571 $2752429 During March, the job-cost record for Job X contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 O a. 210510 O b. 2664777 O c. 573641.60 O d. 32183 Required: At the end of 2019, compute the under- or overallocated manufacturing overhead under normal costing. Tavlor TOP Team
ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2022, ABC estimated that manufacturing overhead for the year would be P4,800,000 and machine hours would be 80,000. The following information pertains to April 2022: Job #1 Job #2 Job #3 Work in process, April 1 P320,000 P520,000 P760,000 April production: Direct materials requisitioned 80,000 96,000 144,000 Direct labor costs 48,000 72,000 90,000 Machine hours 400 700 900 Actual overhead costs incurred during April amounted to P125,000. During April, jobs 1 and 3 were completed. Job 1 was delivered to a customer and an invoice for P800,000 was billed. Any over- or under-applied overhead is considered to be insignificant. 1. How much is the cost of goods…
The Plastic Manufacturing Company uses the Job Order Costing and applies manufacturing overhead costs to units produced using an appropriate base. The activities for September 2020 are shown below: Direct Material Inventory used $ 45,000 Indirect Material Inventory used $ 4,000 Direct Manufacturing Labor $ 53,500 Applied Manufacturing Overhead $ 56,500 Actual Manufacturing Overhead $ 62,500 Beginning and Ending Work In Process $ 0 What is the cost of jobs completed in September 2020? а. $ 151,000 b. $ 155,000 $ 161,500 d. $ 161,000
ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2022, ABC estimated that manufacturing overhead for the year would be P4,800,000 and machine hours would be 80,000. The following information pertains to April 2022: Job #1 Job #2 Job #3 Work in process, April 1 P320,000 P520,000 P760,000 April production: Direct materials requisitioned 80,000 96,000 144,000 Direct labor costs 48,000 72,000 90,000 Machine hours 400 700 900 Actual overhead costs incurred during April amounted to P125,000. During April, jobs 1 and 3 were completed. Job 1 was delivered to a customer and an invoice for P800,000 was billed. Any over- or under-applied overhead is considered to be insignificant. How much is the adjusted gross profit in April? How much is the ending work in process as of April 30, 2022?
Problem Activity Based Costing Zeta company has identified the following overhead costs and cost drivers for the upcoming year Expected Costs Overhead Item Cost Driver Quantity Number of Setup costs $45,000 300 setups Number of Material Handling $90,000 7,500 material moves Number of Quality Cost $150,000 6,000 Inspections Machining Cost $67,500 Machine Hours 900 Total $352,500 The following information was collected on three jobs that were completed during the year Job 201 $6,000 $2,800 Job 202 $12,000 $2,000 Job 203 $8,000 $4,000 Direct materials Direct labor Units completed 30 150 Direct labor-hours 18 22 15 Machine hours 10 50 10 Number of setups 1 4 Number of Inspections 10 30 Number of material 10 50 moves For the year the company budgeted direct labor cost of $100,000, budgeted direct material cost of $280,000, and estimated labor hours of 5,000. Determine the unit cost for each job using Activity Based Costing. (Round amounts to 2 decimal places.) 20 30
A company has identified the following overhead costs and cost drivers for the coming year: Overhead Item Cost Driver Budgeted Cost Budgeted Activity Level Machine setup Number of setups $ 20,000 200 Inspection Number of inspections 130,000 6,500 Material handling Number of material moves 80,000 8,000 Engineering Engineering hours 50,000 1,000 Total $280,000 The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials $5,000 $12,000 $8,000 Direct labor $2,000 $ 2,000 $4,000 Units completed 100 50 200 Number of setups 1 2 4 Number of inspections 20 10 30 Number of material moves 30 10 50 Engineering hours 10 50 10 If the company uses activity-based costing, compute the cost of each unit of Job 102.