A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect materials Indirect labor P140,000 200,000 20,000 Depreciation Taxes Supervision P60,000 10,000 50,000 Factory supplies
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A: solution 1. Using traditional cost Overhead allocation =predetermined rate * hours of B…
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Q: The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light…
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Q: The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light…
A: Direct Labor hours Night Lights = Budgeted Units * direct labor hours per unit
Q: A company’s planned activity level for next year is expected to be 100000 machine hours. At this…
A: In the flexible budget prepared at the 80000 machine hours, the fixed costs shall remain the same…
Q: Smith Company budgeted total variable costs at $250,400 for the current year. In addition, they…
A: Solution: Total Budgeted overhead = $250,400 + $325,000 + $20,000 + $140,000 + $60,616 = $796,016…
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A: Following are the calculation of budget for factory overhead:
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A: Direct materials: It is the basic input required to manufacture the finished products. The…
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Q: The production supervisor of the Machining Department for Niland Company agreed to the following…
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A: A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The…
Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…
A: Underapplication of Overheads means that the estimated applied expenditure on factory overheads are…
Q: The production supervisor of the Machining Department for Niland Company agreed to the following…
A: Budgeting is the process of preparing financial statements to estimate the organization’s future…
Q: A company s planned activity level for next year is expected to be 100000 machine hourS. At this…
A: Manufacturing overhead cost is the sum of all the indirect costs which are incurred while…
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A: Contribution Margin Ratio is computed by dividing the contribution by the sales and then multiplying…
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A: Budgeted variable factory overhead = variable factory overhead rate x budgeted direct labor time =…
Q: XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or…
A: Budgeted cost of goods sold = Direct material + Direct labor + variable manufacturing overhead costs…
Q: a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining…
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A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…
Q: Pinacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the…
A: Plantwide factory overhead rate = Budgeted overhead cost / Budgeted machine hours
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Q: Evanson Company expects to produce 564,000 units of their product during the year. Monthly…
A: Solution Evanson Company Monthly Flexible Manufacturing budgeting Activity level…
Q: The master budget of Sheridan Company shows that the planned activity level for next year is…
A: Total variable costs = Indirect labor + Machine supplies + Indirect materials = $720000 + 180000 +…
Q: Parkson Limited has produced an overhead budget for next year based on two levels of activity, 5000…
A: Budgeted Cost - It is an estimation of expense against the quantity of production of goods. It is…
Q: The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided…
A: Given that: Total overhead of Fabrication department = $420,000 Total overhead of Assembly…
Q: he production supervisor of the Machining Department for Hagerstown Company agreed to the following…
A: may June Total flexible budget $1,584,000 $1,893,600 $2,048,400 Actual cost $1,600,000…
Q: The production supervisor of the Machining Department for Celtic Company agreed to the following…
A: Flexible Budget - It is a type of budget that adjusts to changes in actual revenue levels.…
Q: Steed Co. budgets production of 150,000 units in the next year. Steed’s CFO expects that each unit…
A: Total Budget for factory overhead = Budgeted units x Budgeted Hours per unit x overhead rate per…
Q: At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct…
A: Direct labor rate = Direct labor cost/hour of production = $110,000/8000 = $13.75/hour Direct…
Q: Evanson Company expects to produce 516,000 units of their product during the year. Monthly…
A:
Q: The production department of Zan Corporation has submitted the following forecast of units to be…
A: Raw material to be consumed per unit = 8 grams Cost of Raw Material = $1.20 per gram Required labor…
Q: The production supervisor of the Machining Department for Niland Company agreed to the following…
A: Flexible budget is a budget that adjusts or flexes with changes in volume or activity. A flexible…
Q: Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's…
A: Total variable costs = Direct Material + Direct labor + Variable Overhead + Variable Selling and…
Q: The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light…
A: Total Direct Labour Hours= Labour hour of night light+ Labour hour of desk lamps Labour hours of…
Q: XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or…
A: Budgeted cost of goods sold = Direct material + Direct labor + variable manufacturing overhead costs…
Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…
A: We first need to understand the meaning of under or overapplied overhead. A overhead is known to be…
Q: The master budget of Swifty Corporation shows that the planned activity level for next year is…
A: A flexible budget is a budget that includes all the flexibility and change in the output. In…
Q: Kent Corporation developed the following budgeted costs for the current year: Direct materials…
A: Pre-determined overhead allocates rate: It is the rate of allocating the expected overheads to the…
Q: Roget Factory has budgeted factory overhead for the year at $6,650,400. It plans to produce…
A: Factory overhead rate = Budgeted Overhead cost / Budgeted Direct labor hours
Q: A. Parkson Limited has produced an overhead budget for next year based on two levels of activity,…
A: Parkson Limited has budgeted overhead for next year based on two levels i.e., 5000 units and 8000…
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A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Hill Company plans to produce 300,000 units next year. The production budget for this level of…
A: The costs can be differentiate as fixed and variable cost. The fixed costs remains constant at every…
Q: YZ Company expects to produce and sell 15,000 units during the next year with no beginning or ending…
A: Budgeted cost of goods sold = Direct material + Direct labor + variable manufacturing overhead costs…
Q: Evanson Company expects to produce 568,000 units of their product during the year. Monthly…
A:
Q: The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The…
A: Predetermined Overhead Rate = Estimated Manufacturing Overhead Cost Estimated units of allocation…
Q: Katherin, Ltd. is developing their manufacturing overhead budget for May, which is based on budgeted…
A: Fixed overhead rate = $102,000 / 11,552 direct labor hours = $8.83 per direct labor hour Variable…
Q: A company's planned activity level for next year is expected to be 100,000 machine hours. At this…
A: Introduction: Variable cost: Variable cost is not fixed in nature. It varies according to the change…
A flexible budget prepared at the 70,000 machine hours level of activity would show total
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- The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
- Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
- Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-63 Flexible Budget for Various Levels of Activity Refer to the information for Palladium Inc. above. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. 2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Four welding units, with a lease cost of 12,000 per year per unit Six welding employees each paid a salary of 50,000 per year (A total of 9,000 welding hours are supplied by the six workers.) Welding supplies: 300 per job Welding hours: Three hours used per job During the year, the activity operated at 90 percent of capacity and incurred the actual activity and resource costs, shown on page 676. Lease cost: 48,000 Salaries: 315,000 Parts and supplies: 805,000 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. 2. Prepare a performance report for the welding activity. 3. What if welders were hired through outsourcing and paid 30 per hour (the welding equipment is provided by Foy)? Repeat Requirement 1 for the outsourcing case.
- Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?