Sh.29. [The following information applies to the questions displayed below.]Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. Thecompany budgets overhead cost of $250,000 in the Molding department and $210,000 in the Trimming department. Thecompany budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actualproduction information follows.Part ZPart XITotalsNumber ofUnits3,0004,000Holding DepartmentHours per Unit2.0 MH per unit2.5 MH per unitTotal Hours6,000 MH10,000 MH16,000 MHExercise 17-7 (Algo) Plantwide overhead rate LO P1Complete this question by entering your answers in the tabs below.Required 2Required:1. Compute the plantwide overhead rate using direct labor hours as the allocation base.2. Determine the overhead cost per unit for each part using the plantwide rate.Trimming DepartmentHours per Unit3 DLH per unit4 DLH per unitRequired 1Compute the plantwide overhead rate using direct labor hours as the allocation base.Total Hours9,000 DLH16,000 DLH25,000 DLH4 Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" to2 decimal places.)PartZXPlantwide Overhead RateActivity Usage< Required 1Bequind 2 >Overhead cost per unit

Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $250,000 in the Molding department and $210,000 in the Trimming department. The company budgets 16.000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual

Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $250,000 in the Molding department and $210,000 in the Trimming department. The company budgets 16.000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 4MCQ: The predetermined overhead rate equals a. actual overhead divided by actual activity level for a...

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Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $684,000 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Estimated Overhead. Cost $ 235,200 $73,600 $ 80,000 $ 295,200 Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours: Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 6,600 5,400 40 120 1 7,600 6,800 Expected Activity 12,000 MHS 160 setups 2 products 14,400 DLHS
A company adopts activity-based costing system. Activity Material handling Quality inspection Machine checkups Required: Req 1 Complete this question by entering your answers in the tabs below. Cost Driver Number of moves Number of inspections machine hours Req 2 and 3 Material Handling Quality inspection Machine checkup Calculate the activity rates. Note: Round your answers to 2 decimal places. Activity Rate Estimated MOH for activity $ 2,400.00 $ 8,636.00 $ 16,629.00 per Material Move per Inspection per Machine Hour Product A 41 moves 570 inspections 3,020 machine hours. Product B 55 moves 700 inspections 4,210 machine hours.
The following information was taken from the annual manufacturing overhead cost budget of Indigo Company: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Normal production level in units Standard labour hours per unit $36,660 $19,500 15,600 3,900 During the year, 3,700 units were produced, 15,000 hours were worked, and the actual manufacturing overhead was $55,980. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours.
1. What is the activity rate for Activity 1, Activity 2, and Activity 3? (figures only, round off 2 decimal places). 2.What is the overhead cost attributed to Product A and Product B?
What formula do we use in accounting to determine estimated total manufacturing overhead (MOH)? Group of answer choices Y= mX +b Y = a + bX (Estimated Total MOH/(Estimated Total Cost Driver) (Actual Total MOH)/(Actual Total Cost Driver) (Estimated Total MOHV(Actual Total Cost Driver)
Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver (20 machine setups) 11,200 (16,000 parts) (100 inspections) Machine setup $ 14,000 Parts handling Quality inspections 16,800 Total budgeted overhead $ 42,000 Unit Information Units produced Direct materials cost Product A Product B 1,400 units 280 units $ 24 per unit $ 34 per unit Direct labor cost Direct labor hours $ 44 per unit $ 54 per unit 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and…
Which of the following are used for calculating the standard overhead absorption rate? a. Per center rate and Per unit rate b. Per person rate and Per center rate c. Per hour rate and Per unit rate d. Per hour rate and Per person rate
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
The predetermined overhead rate equals a. actual overhead divided by actual activity level for a period. b. estimated overhead divided by estimated activity level for a period. c. actual overhead minus estimated overhead. d. actual overhead multiplied by actual activity level for a period. e. one-twelfth of estimated overhead.
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.
What formula do we use in accounting to determine estimated total manufacturing overhead (MOH)? Group of answer choices Y = mX +b Y = a+ bX (Estimated Total MOH/(Estimated Total Cost Driver) (Actual Total MOH)/(Actual Total Cost Driver) (Estimated Total MOH/(Actual Total Cost Driver)
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,900 Work-in-Process Inventory 21,230 Finished Goods Inventory 8,800 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 $2,634 $2,395 1,860 1,116 Direct materials Direct labor Applied overhead During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $28,720. b. Materials requisitioned: Job 114, $16,000; Job 115, $12,530; and Job 116, $5,040. c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 240 hours at $15 per hour; and Job 116, 100 hours at $17 per hour. 480 $3,785 4,420 2,652 888 d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,335. f. Job 115 was completed and transferred to the finished goods warehouse. g. Job 115 was shipped, and the…