Spartan Corp. applies manufacturing overhead based on direct labor hours. For 2023, Spartan Corp. estimated total manufacturing overhead cost to be $250,000 and estimated 50,000 total direct labor hours would be used. In 2023, actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used. Calculate the overhead rate using normal costing. [Select] the nearest cent. Round your answer Using normal costing, how much overhead will be applied to cost object that uses 18,500 labor hours Select 1
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- Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?Quality Fender uses a standard cost system and provide the following information: 1(Click the icon to view the information.) Quality Fender allocates manufacturing overhead to production based on standard direct labor hours. Quality Fender reported the following actual results for 2024: actual number of fenders produced, 20,000; actual variable overhead, $4,610; actual fixed overhead, $24,000; actual direct labor hours, 360. Read the requirements2. Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U).(You may need to simply the formula based on the data provided. Abbreviations used:…
- Deluxe Fender uses a standard cost system and provide the following information: 1(Click the icon to view the information.) Deluxe Fender allocates manufacturing overhead to production based on standard direct labor hours. Deluxe Fender reported the following actual results for 2024: actual number of fenders produced, 20,000; actual variable overhead, $5,250; actual fixed overhead, $35,000; actual direct labor hours, 480. Read the requirements2. Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U).(You may need to simply the formula based on the data provided. Abbreviations used: AC =…Quality Fender uses a standard cost system and provide the following information: m (Click the ioon to view the information.) Quality Fender allocates manufacturing overhead to production based on standard direct labor hours. Quality Fender reported the folowing actual resuits for 2024: actual number of fenders produced, 20,000; actual variable overhead, $5,300; actual fixed overhead, $34,000, actual direct labor hours, 360. Read the requirements Requirement 1. Compute the overhead variances for the year. variable overhead cost variance, variable overhead efficiency variance, fixed overthead cost variance, and fixed overhead volume variance. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identit whether each variance is favorable (F) or unfavorable (U). (You may need to simply the formula based on the data provided. Abbreviations used: AC = actual cost AC = actual quantity,…1. SIP Inc. (SIP) is plastic injection molding company specializing in front-end grilles. Bilchew Numbers wants to look at using an activity-based costing system. For 2021, he estimated overhead costs of $12,560,000 to be allocated using an activity-based costing system (see the table below). Bilchew also estimated that direct labour will be paid at the rate of $15 per hour. Cost Driver Activity Cost Pool Estimated Cost Total Quantity of Allocation Base (allocation base) Indirect materials $ 1,450,000 Direct materials $6,590,910 Indirect labour and 2,000,000 Direct labour 100,000 hours supervision Utilities 3,598,000 Power 20,000 kilowatt-hours (kWh) consumption Inspection 4,200,000 Inspection 15,000 inspections Depreciation 1,312,000 Machine usage 160,000 machine-hours $12,560,000 During January 2021, Bilchew worked on two jobs, which consumed the following resources: Job 2021-A1 Job 2021-A2 Direct materials cost $ 6,500 $ 22,000 Direct labour cost $42,000 $165,000 Machine-hours 1,800…
- Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. * The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G V w 770,000 120,500 420,000 170,000 15,000 23,000 9,500 14,500 30,000 7,000 7,000 7,500 6,000 97,500 Rent 250,000 100,000 350,000 157,500 61,000 Repairs Fuel Indirect Labor 145,000 127,000 100,000 94,500 Indirect 56,500 60,000 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively. 7,500 202,500 94,000 60,000…Compute for the total Factory overhead cost of Department H if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000 7,500 Fuel 350,000 420,000 9,500 7,000…Compute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000…
- How can I Compute the plantwide predetermined rate for the current year with only direct labor dollar cost (not the number of hours) and total manufacturing overhead cost? The book question says we should use a company plantwide approach and assume the costs are fixed. For example - the manufacturing overhead costs are $924,000 and the direct labor costs are $660,000. I would assume that means the predetermined OH rate is 1.4% but that's not the right answer (per my online book assignment). I'm attaching the practice problem from the book. Thanks for your help!A company expected its annual overhead costs to be $1600000 and direct labor costs to be $1000000. Actual overhead was $1550000, and actual labor costs totaled $1100000. How much is the company’s predetermined overhead rate to the nearest cent? $1.45 $1.41 $1.60 $1.55Fulcrum Industries manufactures dining chairs and tables. The following information is available in December 2020: Dining Chairs Tables Total CostMachine setups 200 600 $48,000Inspections 250 470 $72,000Labor hours 2,600 2,400 Fulcrum is considering switching from one overhead rate based on labor hours to activity-based costing.InstructionsPerform the following analyses for these two components of overhead:a. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.b. Compute total machine setups and inspection costs assigned to each product, using activity-based costing.c. Comment on your findings.