39. LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company's products and related statistics follow. Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced Product A 139,500 30,000 52,500 430 15,000 Product B 190,500 37,500 22,500 860 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12. a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver Utilities # of machine hours Setup # of setups Material handling # of pounds of material Determine the total cost for each product and the cost per unit. Cost $ 750,000 193,500 1,419,000

39. LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company's products and related statistics follow. Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced Product A 139,500 30,000 52,500 430 15,000 Product B 190,500 37,500 22,500 860 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12. a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver Utilities # of machine hours Setup # of setups Material handling # of pounds of material Determine the total cost for each product and the cost per unit. Cost $ 750,000 193,500 1,419,000

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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Hansaben
Ee.9.
Tt.11.
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But the answer appears 19,504 in the Direct Labor. How did that happen? Can you make a solution for this?
PA17. LO 6.5 This information was collected for the first year of manufacturing for Appliance Apps: Direct materials per unit Direct labor per unit $ $ $ Variable manufacturing overhead per unit Units produced Variable selling and administration expenses $ Units sold Sales price Fixed manufacturing expenses Fixed selling and administration expenses 2.50 1.50 0.25 1.75 40,000 35,000 12 $ $140,000 $ 20,000 Requirements: 1.) Prepare an income statement under variable costing. 2.) Prepare an income statement under absorption costing. 3.) Prepare a reconciliation to the income under the absorption method. FIVE STAR *****
3. Muscat Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2017 for the company: Company Direct materials OMR 60,000 Direct labor OMR 25,000 Manufacturing overhead costs OMR 72,000 Machine hours 90,000 During 2017, the actual machine-hours totaled 95,000, and actual overhead costs were OMR 71,000. (a) Compute the predetermined overhead rate. (b) Compute the manufacturing overhead applied. (c) How much overhead is over or underapplied for the year for the company? State amount and whether it is over- or underapplied.
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