shobha Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for Ofollow:Strike2,200 bagsTurkey3,450 bagsTwo departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows:ProductionCuttingSewing0.350 hour per bag.StrikeTurkey0.050 hour per bag0.200 hour per bag0.550 hour per bagHourly direct labor rates are $10 for the Cutting Department and $15 for Sewing.Required:Determine Alleyway's budgeted direct labor cost for October.Note: Round your final answers to nearest whole dollar. Do not round your intermediate calculations.Budgeted Direct Labor CostCuttingSewing

Lets understand the basics.Budget is prepared by the management to estimate the future profit and…

Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels ollow: Strike 2,200 bags Turkey 3,450 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follow Production

Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels ollow: Strike 2,200 bags Turkey 3,450 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follow Production

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

See similar textbooks

Similar questions

Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company’s flexible budget follows: The product requires 3 lb of materials at a standard cost of $5 per pound and 2 hours of direct labor at a standard cost of $10 per hour. For the current year, the company planned to operate at the level of 6,250 direct labor hours and to produce 3,125 units of product. Actual production and costs for the year follow: Required: For the current year, compute the factory overhead rate that will be used for production. Show the variable and fixed components that make up the total predetermined rate to be used. Prepare a standard cost card for the product. Show the individual elements of the overhead rate as well as the total rate. Compute (a) standard hours allowed for production and (b) under- or overapplied factory overhead for the year. Determine the reason for any under- or overapplied factory overhead for the year by computing all variances, using each of the following methods: Two-variance method Three-variance method (appendix) Four-variance method (appendix)
Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: Question Content Area 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc.Overhead BudgetFor the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours blank Maintenance $fill in the blank ddf6cc027003019_1 $fill in the blank ddf6cc027003019_2 blank Power fill in the blank ddf6cc027003019_3 fill in the blank ddf6cc027003019_4 blank Indirect labor fill in the blank ddf6cc027003019_5 fill in the blank…
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget Information follows. Direct labor hours Machine hours Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Complete this question by entering your answers in the tabs below. Required A Required B Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Product Allocation Rate x Weight of Base X Vogue Beauty Vogue Beauty Glamour Total 6,600 4,800 16,000 4,600 1,200 2,300 2,900 6,400 Glamour Total X X = Allocated Cost $ || II || $
Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Strike Turkey 3,400 bags Production 2,700 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Cutting 0.100 hour per bag 0.150 hour per bag Sewing 0.350 hour per bag 0.600 hour per bag Strike Turkey Hourly direct labor rates are $11 for the Cutting Department and $13 for Sewing. Required: Determine Alleyway's budgeted direct labor cost for October. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.) Cutting Sewing Budgeted Direct Labor Cost
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget Information follows. Direct labor hours Machine hours Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Complete this question by entering your answers in the tabs below. Required A Required B Vogue Beauty Glamour Total 4,600 6,600 4,800 16,000 1,200 2,300 2,900 6,400 Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Product Allocation Rate x Weight of Base Allocated Cost X X Vogue Beauty Glamour Total X = || Required A Required B >
Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey.Budgeted production levels for October follow:Strike TurkeyProduction 2,400 bags 3,150 bagsTwo departments, Cutting and Sewing, produce the bowling bags. Direct labor hoursneeded for each style are as follows:Cutting SewingStrike 0.050 hour per bag 0.250 hour per bagTurkey 0.250 hour per bag 0.450 hour per bagHourly direct labor rates are $13 for the Cutting Department and $14 for Sewing.Required:Determine Alleyway's budgeted direct labor cost for October. (Round your finalanswers to nearest wh
Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Assembly %$4 480,000 2$ Overhead cost 1,330,000 Direct labor hours Machine hours 412,500 DLH 40,000 DLH 95,000 MH 78,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Machine Hours per Unit Мн рer unit Assembly Department Direct Labor Hours per Unit Machine Hours per Unit Direct Labor Number Hours per Unit of Units DLH per DLH per 2 unit Мн рer 0.5 unit Desk 6,000 lamp unit Required: 1. Determine the plantwide overhead rate using 452,500 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk…
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 88,000 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.