SFrank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for hisdepartment's poor performance over the prior month. The department's cost control report is given below:FREEMONT CORPORATION-MACHINING DEPARTMENTCost Control ReportFor the Month Ended June 30Machine-hoursDirect labour wagesSuppliesMaintenanceUtilitiesSupervisionDepreciationTotalActual40,040$ 86,10024,290145,80017,74041,40083,400$398,730Static Budget36,700$ 84,41022,020142,67017,07041,40083,400$390,970Static BudgetRequired:1. This part of the question is not part of your Connect assignment.Variance$ 1,690 U2,270 U3,130 U670 U100$ 7,760 U"I just can't understand all of these unfavourable variances," Weston complained to the supervisor of another department. "When theboss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked moreefficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the suppliesthat were stolen out of our warehouse last month. But they amounted to only a couple of hundred dollars, and just look at this report.Everything is unfavourable."Direct labour wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities aremixed costs. The fixed component of the budgeted maintenance cost is $98,630; the fixed component of the budgeted utilities cost is$13,400.< Prev2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machiningdepartment. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Freemont Corporation-Machining Department4 of 4twwMacBook AirNext

Name: SFrank Weston, supervisor of the Freemont Corporation's Machining Dep
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Description: SFrank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for hisdepartment's poor performance over the prior month. The department's cost control report is given below:FREEMONT CORPORATI

Standards are set in advance, from the standard the actual performance is measured. In case if the…

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Required: 1. This part of the question is not part of your Connect assignment. 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Freemont Corporation-Machining Department

Required: 1. This part of the question is not part of your Connect assignment. 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Freemont Corporation-Machining Department

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 12P: Bangor Products Co. obtained the following information from its records for April: Required: 1....

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The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months: January February March April May June Machine- Hours 150,000 140,000 160,000 130,000 170,000 200,000 $319,500 $362,500 $400,000 Assume that the relevant range includes all of the activity levels mentioned in this problem. What is Casablanca's independent variable? Multiple Choice Overhead Cost $339,000 $328,000 $350, eeb the year the total overhead cost
2. Len, Inc., which uses a job-costing system, began business on January 1, 20XX and appliesmanufacturing overhead on the basis of direct-labor cost. The following information relatesto 20XX:• Budgeted direct labor and manufacturing overhead were anticipated to be P200,000 andP250,000, respectively.• Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct materialand direct labor: Job No. Direct Materials Direct Labor 1 P145,000 P35,000 2 320,000 65,000 3 55,000 80,000 • Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% ofcost. Job no. 3 remained in production.• Actual…
2. Len, Inc., which uses a job-costing system, began business on January 1, 20XX and appliesmanufacturing overhead on the basis of direct-labor cost. The following information relatesto 20XX:• Budgeted direct labor and manufacturing overhead were anticipated to be P200,000 andP250,000, respectively.• Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct materialand direct labor: Job No. Direct Materials Direct Labor 1 P145,000 P35,000 2 320,000 65,000 3 55,000 80,000 • Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% ofcost. Job no. 3 remained in production.• Actual…
2. Len, Inc., which uses a job-costing system, began business on January 1, 20XX and appliesmanufacturing overhead on the basis of direct-labor cost. The following information relatesto 20XX:• Budgeted direct labor and manufacturing overhead were anticipated to be P200,000 andP250,000, respectively.• Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct materialand direct labor: Job No. Direct Materials Direct Labor 1 P145,000 P35,000 2 320,000 65,000 3 55,000 80,000 • Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% ofcost. Job no. 3 remained in production.• Actual…
As an assistant cost accountant for Firewall Industries, you have been assigned to review the activity base for the predetermined factory overhead rate. The president, JoJo Gunn, is concerned about the wide fluctuation in the amount of over- or underapplied overhead in recent years. An analysis of the company's operations and use of the current overhead rate (direct labor cost) has narrowed the possible alternative overhead bases to direct labor cost and machine hours. For the past five years, the following data have been gathered: ww mwwwww M M w Year 5 Year 4 Year 3 Year 2 Year 1 Actual overhead $ 790,000 $ 870,000 $ 935,000 $ 845,000 $ 760,000 Applied overhead 777,000 882,000 924,000 840,000 777,000 (Over-) underapplied overhead $ 13,000 $ (12,000) %24 $ 11,000 5,000 $ (17,000) Direct labor cost $3,885,000 $4,410,000 $4,620,000 $4,200,000 $3,885,000 Machine hours 93,000 104,000 111,000 100,400 91,600 8,49 840,000 1. Calculate a predetermined factory overhead rate for each…
As an assistant cost accountant for Mississippi Industries, you have been assigned to re- view the activity base for the predetermined factory overhead rate. The president, Tony Favre, has expressed concern that the over- or underapplied overhead has fluctuated excessively over the years. An analysis of the company's operations and use of the current overhead rate (direct labor cost) has narrowed the possible alternative overhead bases to direct labor cost and machine hours. For the past five years, the following data have been gathered: 2014 2013 2012 2011 2010 $ 790,000 777,000 $ 13,000 $ 870,000 $ 935,000 $ 760,000 777,000 $ (17,000) Actual overhead $ 845,000 Applied overhead (Over-) underapplied overhead 882,000 924,000 840,000 $ (12,000) $ 11,000 24 5,000 Direct labor cost $3,885,000 $4,410,000 $4,620,000 $4,200,000 $3,885,000 Machine hours 93,000 104,000 111,000 100,400 91,600
Henderson Industries applies manufacturing overhead to its jobs based on a predetermined overhead rate, which is calculated using direct labor costs. The following data pertains to Henderson Industries' Work in Process inventory for the month of April: April 1 balance: $ 26,000 Debits during April: Direct Materials: $40,000 Direct Labor: $50,000 Manufacturing Overhead: $37, 500 Throughout April, the company's Work in Process inventory account received credits totaling $120, 500, representing the Cost of Goods Manufactured for the month. By April 30, only one job was still in process, having accumulated $9, 600 in applied overhead costs. The question is, what is the direct materials cost in this unfinished job? The options are: Group of answer choices $10, 600 $16, 700 $12, 800 $23, 400
Garrison, Inc., which uses a job-costing system, began business on January 1, 20x3 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 20x3: Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively. Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job No. Direct Materials Direct Labor 1 $145,000 $35,000 2 320,000 65,000 3 55,000 80,000 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production. Actual manufacturing overhead by year-end totaled $233,000. Garrison adjusts all under- and overapplied overhead to cost of goods sold. Required:D. Was manufacturing overhead under- or overapplied during 20x3? By how much?E. Present the necessary journal entry to handle under- or overapplied manufacturing overhead at…
Garrison, Inc., which uses a job-costing system, began business on January 1, 20x3 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 20x3: Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively. Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job No. Direct Materials Direct Labor 1 $145,000 $35,000 2 320,000 65,000 3 55,000 80,000 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production. Actual manufacturing overhead by year-end totaled $233,000. Garrison adjusts all under- and overapplied overhead to cost of goods sold. Required:A. Compute the company's predetermined overhead application rate.B. Compute Garrison’s ending work-in-process inventory.C. Determine Garrison’s sales revenue.D. Was…
Nova Company's total overhead cost at various levels of activity are presented below: Total Overhead Cost Month April May June July Machine- Hours 54,000 44,000 64,000 74,000 $ 210,240 $ 183,140 $ 237,340 $ 264,440 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 70,400 47,000 65,740 $183,140 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $264,440 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $264,440 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y = a +…
Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $76,000 and the total of the credits to the account was $66,000. Which of the following statements is true? Multiple Choice Manufacturing overhead for the month was underapplied by $10,000. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $76,000. Manufacturing overhead applied to Work in Process for the month was $76,000. Actual manufacturing overhead incurred during the month was $66,000.
Gilkison Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below: Gilkison Corporation Balance Sheet October 1 Assets: Cash $ 10,150 Raw materials $ 3,750 Work in process 15,150 Finished goods 19,150 38,050 Property, plant, and equipment (net) 229,150 Total assets $277,350 Liabilities and Stockholders’ Equity: Accounts payable $ 15,075 Retained earnings 262,275 Total liabilities and stockholders’ equity $277,350 Summaries of the transactions completed during October appear below: (1) Raw materials purchased on account $ 66,150 (2) Raw materials used in production (direct materials) $ 50,150 (3) Raw materials used in production (indirect materials) $ 7,075 (4) Direct labor paid in cash $ 95,150 (5) Indirect labor paid in cash $ 25,150 (6) Selling and administrative salaries paid in cash $ 30,150 (7)…