Calculate total direct costs and total indirect (MOH) costs. (Enter amounts in thousands) Total direct cost $_________ Total indirect (MOH) cost $_______
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1. Calculate total direct costs and total indirect (MOH) costs. (Enter amounts in thousands)
Total direct cost $_________
Total indirect (MOH) cost $_______
2. Assume Dwifty used a budgeted MOH rate to apply MOH costs, and the total cost applied this year is $289,000. How much did the company under-or overapply for its MOH costs?
MOH costs was _______________(underapplied, overapplied, not over/underapplied by $_______________.
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- Support Department Cost Allocation—Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: Support Department 1 SupportDepartment 2 ProductionDepartment 1 ProductionDepartment 2 Number of employees 9 7 25 18 Asset value $1,150 $670 $6,230 $5,100 Department cost $20,000 $15,500 $99,000 $79,000 Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments. SupportDepartment 2 ProductionDepartment 1 ProductionDepartment 2 Support Department…Support Department Cost Allocation—Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: Support Department 1 SupportDepartment 2 ProductionDepartment 1 ProductionDepartment 2 Number of employees 9 7 25 18 Asset value $1,150 $670 $6,230 $5,100 Department cost $20,000 $15,500 $99,000 $79,000 Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments. SupportDepartment 2 ProductionDepartment 1 ProductionDepartment 2 Support Department…Activity Cost Pools Total Cost Customer Orders Product Development Customer Relations Other Total Production Department: Indirect factory wages $400,000 50% 30% 15% 5% 100% Factory equipment depreciation 150,000 55% 30% 0% 15% 100% Factory utilities 120,000 59% 34% 0% 7% 100% Factory property taxes and insurance 75,000 57% 33% 0% 10% 100% General Administrative Department: Administrative wages and salaries 275,000 20% 10% 40% 30% 100% Office equipment depreciation 40,000 32% 16% 15% 37% 100% Adminstrative property taxes and insurance 60,000 0% 0% 0% 100% 100% Marketing Department: Marketing wages and salaries 150,000 20% 10% 40% 30% 100% Selling expenses 100,000 32% 16% 15% 37% 100% Required: Use the data to complete a First-Stage Allocation to Activity Cost Pools.
- Determine the Manufacturing Overhead Based on the given information, determine the Purchases EFS Systems undertakes its own machine maintenance. The depreciation on the equipment is P20,000 per year and operating cost is P2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Determine the Prime Cost Determine the Finished Goods, Beginning Determine the Conversion Cost Determine the Manufacturing Cost Determine the Finished Goods, EndingEstimating costs based on behavior patterns The following informationprovides the amount of cost incurred in August for the cost items indicated. DuringAugust, 8,000 units of the firm’s single product were manufactured.Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,600Factory depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,500Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,200Production supervisor’s salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,100Computer rental expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200Maintenance supplies used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800Required:a. How much cost would you expect to be incurred for each of these itemsduring September when 9,600 units of the product are planned for production?b. Calculate the average total…Lewisville CorporationIn order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20% Producing Dept. A 40% 30% Producing Dept. B 40% 60% Assume that Lewisville Corporation distributes service department overhead costs based on the algebraic method. What would be the formula to determine the total maintenance costs? Group of answer choices M = $18,700 + .10U M = $9,000 + .20U M = $18,700 + .30U + .40A + .40B M = $27,700 + .40A + .40B
- To better match cost to revenues Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20% Producing Dept. A 40% 30% Producing Dept. B 40% 60% Using the step method, how much of Lewisville's Corporation’s Utilities Department cost is allocated between Departments A and B? (order of allocation begins with Maintenance) Group of answer choices $9,900 $10,800 $12,740 $27,700 In order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20%…The following information taken from Jejai Limited: Particulars DebitRM CreditRMPurchase of raw materials 258,000Fuel and light 21,000Administration salaries 17,000Factory wages 59,000Carriage outwards 4,000Rent and business rates 21,000Sales 482,000Return inward 7,000General office expenses 9,000Repairs to plant and machinery 9,000Inventory at 1 January 2020:Raw materialsWork in processFinished goods 21,00014,00023,000 Sundry accounts payable 37,000Capital 457,000Freehold premises 410,000Plant and machinery 80,000Accounts receivable 20,000Accumulated provision for depreciation on plant andmachinery 8,000 Cost in hand 11,000 TOTAL 984,000 984,000 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Inventory in hand at 31 December 2020:a. Raw materials RM25,000b. Work in process RM11,000c. Finished goods RM26,000ii. Depreciation of 10% on plant and machinery using the straight-line methodiii. 80% of fuel and light and 75% of rent and rates to be charged to…The Information bellow has taken from Al Rshad company Wages paid to labour: OMR. 70,000 Purchases raw material OMR 210000 Purchase Return: OMR10000 Factory on cost - 10% of prime cost opening stock raw material OMR25000 closing stock work in process OMR10000 The cost of good manufactured is
- Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. Marley's ManufacturingIncome StatementMonth Ending August 31, 2018 Dept. A Dept. B Sales $23,000 $51,000 Cost of goods sold 11,040 26,520 Gross profit $11,960 $24,480 Expenses: Utility expenses $920 $2,550 Wages expense 5,980 10,710 Costs allocated from corporate 2,300 14,280 Total expenses $9,200 $27,540 Operating income/(loss) in dollars $fill in the blank 1 $fill in the blank 2 Operating income/(loss) in percentage fill in the blank 3 % fill in the blank 4 %Following items belong to the revenue, expenditure, human resources/payroll, production, or financing cycle. Classify each item based on the cycle it belongs to. a. Pay pay-as-you-earn (PAYE) payroll taxes b. Send material requisition to inventory c. Issue stock to investors d. Borrow money from the bank to purchase a new factory e. Complete receiving report f. Appoint replacement purchasing clerk g. Measure employee performance using a performance management system h. Choose suitable supplier of raw materials i. Ensure employees are up to date with the latest tax provisions j. Record personal and tax information for new employeesProduct Cost Period (Selling Name of the Cost Variable Cost Fixed Cost Direct Materials Direct Labor Manu-facturing Overhead and Admin) Cost Oppor-tunity Cost Sunk Cost Rental revenue forgone, $30,000 per year X Direct materials cost, $80 per unit X X Rental cost of warehouse, $500 per month X X Rental cost of equipment, $4,000 per month X X Direct labor cost, $60 per unit X X Depreciation of the annex space, $8,000 per year X X X Advertising cost, $50,000 per year X X Supervisor's salary, $1,500 per month X X Electricity for machines, $1.20 per unit X X Shipping cost, $9 per unit X X Return earned on investments, $3,000 per year…