24: Seat Belt Inc., produces three sizes of seat belts: small, medium, and large. A seat beltpattern is first stenciled onto fabric in the Pattern Department. The stenciled patterns are thensent to the Cut and Sew Department, where the seat belt is cut and sewed together.Seat Belt Inc. uses the multiple production department factory overhead rate method ofallocating factory overhead costs. Its factory overhead costs were budgeted as follows:Overhead DollarsDirect Labor HoursPattern Department:Cut and Sew Department Overhead:40,000 dh60,000 dlb$300,000$600,000$900,000Totals:100,000The Company decides to use the Multiple Department Overhead method, and Direct LaborHours are used to allocate the overhead. We know the following for each type of seatbelt:SmallMedium1.0 dlh1.5 dlb2.5 dlhLarge2.0 dlh3.0 dlb5.0 dlaPattern Department:Cut and Sew Department:1.5 dla2.5 dlh4.0 dlkTotal Per UnitPart I:Calculate the Departmental Factory Overhead Rate for each department: Calculate the total Factory Overhead per unit for each product:Small:Medium:Large:

Answer) Calculation of departmental factory overheads rate for Pattern Department Factory overhead…

Answered: 24: Seat Belt Inc., produces three…

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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JimBob Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: assembly and sanding. The assembly department uses a departmental overhead rate of $35 per machine hour, while the sanding department uses a departmental overhead rate of $20 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: The cost for direct labor is $30 per direct labor hour, and the cost of the direct materials used by Job 603 is $1,400. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? direct labor hours used for assembly dept. -8 and for sanding dept. -5 machine hours used for assembly dept. - 10 and sanding dept. - 7 options: $450, $380, $715, $390
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Department Molding Painting Direct labor-hours 12,000 60,000 Machine-hours 70,000 8,000 Fixed manufacturing overhead cost $ 497,000 $ 615,000 Variable manufacturing overhead per machine-hour $ 1.50 - Variable manufacturing overhead per direct labor-hour - $ 2.00 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours 30…
Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factor overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead Total The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total Production Departments Pattern Department Cut and Sew Department Direct labor hours per unit Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records…
Multiple Production Department Factory Overhead Rate Method Performance Gloves, Inc. produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Performance Gloves uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $194,400 Cut and Sew Department overhead 326,400 Total $520,800 The direct labor estimated for each production department was as follows: Pattern Department 2,700 direct labor hours Cut and Sew Department 3,400 Total 6,100 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were…
Multiple Production Department Factory Overhead Rate Method Performance Gloves, Inc. produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Performance Gloves uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $93,500 Cut and Sew Department overhead 153,300 Total $246,800 The direct labor estimated for each production department was as follows: Pattern Department 1,700 direct labor hours Cut and Sew Department 2,100 Total 3,800 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were…
Riverbed Delights manufactures a wide variety of holiday and seasonal decorative items. Riverbed's activity-based costing overhead rates are: Purchasing Storing Machining Supervision Total cost $394 per order S $2 per square foot/days $100 per machine hour The Snow Man project involved 3 purchase orders, 5,400 square feet/days, 74 machine hours, and 54 direct labor hours. The cost of direct materials on the job was $20,400 and the direct labor rate is $32 per hour. Determine the total cost of the Snow Man project. $5 per direct labor hour
Aragon makes handheld calculators in two models--basic and professional--and wants to refine its costing system by allocating overhead using departmental rates. The estimated $1,149,500 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department. The following data have been compiled: LOADING... (Click the icon to view the data.) Read the requirements LOADING... . Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each department. (Abbreviation used: Qty = quantity. Enter the allocation rates to the nearest cent.) Predetermined OH Estimated overhead costs ÷ Estimated qty of the allocation base =…
Use the following information for the Exercises below. Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $243,750 in the Molding department and $203,750 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows . Molding Department Trimming Department Number of Units Hours per Unit Total Hours Hours per Unit Total Hours Part Z 3,000 2.0 MH per unit 6,000 MH 3 DLH per unit 9,000 DLH Part X 4,000 2.5 MH per unit 10,000 MH 4 DLH per unit 16,000 DLH Totals 16,000 MH 25,000 DLH Required: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.
Calley's Cakes Inc. produces quality specialty cakes. Her cakes move through two departments: Baking and Frosting. The company uses departmental overhead rates to allocate overhead costs. Overheads are allocated based on oven-hours for Baking and direct labour cost for Frosting. Information related to costs for last month is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Baking department Frosting department Oven-hours per unit Baking department Frosting department 10-inch cake. 5,900 5.40 5.00 7.50 0.25 0.00 8-inch glazed cake 9,350 4.30 4.50 8.00 0.25 0.50 In addition, the company budgets manufacturing overhead at $49,250 in the Baking department and $55,500 in the Frosting department. Required: 1. Determine the overhead application rate for each department 2. Determine the total cost per unit of the two types of cakes (10-inch and 8-inch glazed)
Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Department Sanding Department 5 Actual results Direct labor hours used Machine hours used 7 9 6 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 603 is $1,600. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? A. $300 B. $575 C. $475 D. $650
Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead Total The direct labor estimated for each production department was as follows: Pattern Department 1,600 direct labor hours Cut and Sew Department 2,000 Total 3,600 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments…
2. Determine the total and per-unit factory overhead costs allocated to each product, using the plantwide overhead rate in (1). Round per unit amounts to the nearest whole cent. Product Snowboards Total Factory Overhead Factory Overhead Per Unit 585,000 585,000 Skis $ 3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $435,000 and $735,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent. Department Cutting Department 87 per direct labor hour 105 per direct labor hour Finishing Department 4. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (3). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Snowboards Activity Production…

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