Hartley Uniforms produces uniforms. The company allocates manufacturing overheadbased on the machine hours each job uses. Hartley Uniforms reports the following costdata for the past year:BudgetActual7,600 hours6,100 hoursDirect labor hoursMachine hours7,200 hours6,300 hoursDepreciation on salespeople's autos$23,000$23,000Indirect materials$48,500$50,500Depreciation on trucks used to deliveruniforms to customerssolla$13,000$70,000$40,000$11,000Depreciation on plant and equipmentIndirect manufacturing labor$72,500$42,000Customer service hotline$19,000$21,000Plant utilities$35,900$38,400Direct labor cost$72,500$85,500Requirements1odel tba1. Compute the predetermined manufacturing overhead rate.2. Calculate the allocated manufacturing overhead for the past year.3. Compute the underallocated or overallocated manufacturing overhead. How will thisunderallocated or overallocated manufacturing overhead be disposed of?4.How can managers usA acco

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Answered: Hartley Uniforms produces uniforms. The…

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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Determine whether statement 1 and 2 are true or false 4. S1 - Generally, the more reliable internal controls are, the lesser the substantive test procedures the auditor would need to perform in auditing year-end account balances S2 - The industry in which the client operates may give rise to specific risks of material misstatements arising from the nature of the business or the degree of regulation a. False, False b. True, False c. False, True d. True, True
Domestic
Laughton Corporation makes two styles of cases for compact disks, the standard case and the deluxe case. The company has assigned $210,000 in monthly manufacturing overhead to three cost pools as follows: $90,000 to machining costs, $60,000 to production set-up costs, and $60,000 to inspection costs. Additional monthly data are provided below:Standard Case Deluxe CaseSales revenue $ 480,000 $ 189,000Direct materials $ 135,000 $ 45,000Direct labour $ 105,000 $ 30,000Machine hours 24,000 6,000Production runs 7 12Units produced and sold 33,000 3,000The first and last unit in each production run is inspected for quality control purposes. Inspection costs are allocated to the products based on the number of inspections required. Machining costs are allocated to products using machine hours as an activity base. Set-up costs are allocated to products based on the number of production runs each product line requires.Required:(A) Allocate manufacturing overhead from the activity cost pools to…
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155
Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 1,075 hours each month to produce 2,150 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 54,825 Direct labor $ 10,750 Per Set of Covers $ 25.50 5.00 Variable manufacturing overhead (based on direct labor-hours) $ 5,375 2.50 $ 33.00 During August, the factory worked 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month: Total Direct materials (12,500 yards) Direct labor $ 58,750 $ 13,000 Variable manufacturing overhead $ 7,000 Per Set of Covers $ 23.50 5.20 2.80 $ 31.50 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2.…
The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $15,000 variable factory overhead cost, $90,000 for fixed factory overhead cost and 2,500 direct labor hours (its practical capacity) to manufacture 5,000 pairs of boots in March. The factory used 2,700 direct labor hours in March to manufacture 4,800 pairs of boots and spent $15,600 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $92,000. Required: 1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record…
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year. The following information was taken from the annual budget: Direct labor hours 84,000 Machine hours 120,000 Manufacturing costs: Direct labor $525,000 Direct materials 180,000 Indirect labor 75,000 Electric power 48,000 Payroll taxes 12,600 Machine maintenance and repair 9,200 Factory supplies 16,000 Factory heat and light 14,000 Depreciation, taxes, and insurance: Factory buildings 135,000 Machinery 320,200 $1,335,000 Actual results for the year follow: Direct labor hours 85,000 Machine hours 110,000 Manufacturing costs: Direct labor $ 540,000 Direct material 200,000 Factory overhead 625,000…
Blossom Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Fringe benefits (a) 1 hour $11 10% of wage rate 5% of actual labor time 25% of actual labor time 20% of wage rate Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, eg. 1.25.) Standard direct labor hours per brake repair hours F
Carib Tings & More does hand-crafted memorabilia for the tourism industry, in which each batch of items is a job. The company has a highly machine intensive production process, so it allocates manufacturing overhead based on machine hours. Carib Tings & More pre-determined overhead application rate for 2024 was computed from the following data: Total estimated factory overheads $2,400,000 Total estimated machine hours 40,000 At the end of May 2024, Carib Tings & More reported work in process inventory of $176,000. During June 2024, Carib Tings & More actually used 3,000 machine hours and recorded the following transactions. Purchased $324,000 worth of materials on account. Separately, Carib Tings & More paid a $2,500 bill for freight in. i) ii) Manufacturing wages incurred $400,000 iii) Materials requisitioned (includes $30,000 of indirect materials) $420,000 iv) Assigned manufacturing wages, 85% direct labour, 15% indirect labour v) Depreciation expense on factory equipment used on…
Cheyenne Delights manufactures a wide variety of holiday and seasonal decorative items. Cheyenne's activity-based costing overhead rates are: Purchasing Storing Machining Supervision Total cost $385 per order $ $2 $100 per machine hour per square foot/days The Snow Man project involved 3 purchase orders, 4,500 square feet/days, 65 machine hours, and 45 direct labor hours. The cost of direct materials on the job was $19,500 and the direct labor rate is $30 per hour. Determine the total cost of the Snow Man project. $5 per direct labor hour
Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year: Factory rent Company advertising Wages paid to sewing personnel Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters 1. Direct Materials Cost 2. Direct Labor Cost 3. Manufacturing Overhead Cost 4. Total Manufacturing Cost 5. Prime Cost $ 36,000 24,600 75,200 31,300 1,110 6. Conversion Cost 7. Total Period Cost 24,800 31,500 75,500 41, 200 785 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute…
please show the computation

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