Assume that department C applies factory overhead based on unitsproduced with an estimate of 5,000 units for the period. The actual unitsproduced for the current period was 480O. If the company uses the stepmethod in allocating service department costs, how much is the appliedfactory overhead of department C.*Etona company has two service departments and three producing departments. The following data wasmade available:Service DepartmentsMaintenance EngineeringProducing DepartmentsMaintenance HrsEngineering HrsOverhead Costs400800200200R00PR0.000400P90.000400400P12.000P54,000P50,000Your answer

Factory overhead refers to the costs or expenses incurred by an organization while the manufacturing…

Answered: Assume that department C applies…

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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XYZ Ltd. is a manufacturing company that follows the cost allocation approach for overhead allocation. The company uses three cost pools for allocating overhead costs: Material Handling, Machine Maintenance, and Factory Utilities. Each cost pool has its own cost driver. For the current accounting period, the company incurred the following costs and activity levels: Material Handling Costs: $150,000 Cost Driver: Number of Material Orders - 2,500 orders Machine Maintenance Costs: $250,000 Cost Driver: Machine Hours - 10,000 hours Factory Utilities Costs: $200,000 Cost Driver: Direct Labor Hours - 5,000 hours Calculate the overhead allocation rate for each cost pool based on the given information. A) Material Handling: $60 per order, Machine Maintenance: $25 per hour, Factory Utilities: $40 per direct labor hour. B) Material Handling: $30 per order, Machine Maintenance: $25 per hour, Factory Utilities: $40 per direct labor hour. C) Material Handling: $60 per order, Machine…
Use the following information to answer questions 19-20. Godiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1 $42,000 100 200 300 Activity 2 $10,000 20 5 25 Activity 3 $48,000 3,000 3,000 6,000 Compute total overhead costs allocated to Product A: $54,000 $14,000 $24,000 $46,000
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Product Overhead Labor Hours (dlh) B Painting Dept. $243,300 11,500 dlh 14 dlh 7 dlh Finishing Dept. 71,600 6,600 18 Totals $314,900 18,100 dlh 17 dlh 25 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa. S148.12 per unit Ob. $21.16 per unit Oc. S75.94 per unit Od. S121.78 per unit Previous Next Submit Test for Grading Reflector-3.2.1.dmg Show All Shot 202....png Canceled
Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Customizing Forming 7, 000 $ 25,900 $ 2.50 Total Estimated total machine-hours (MHs) Estimated tot al fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 3, 000 $ 7, 200 $ 5.00 10, 000 $ 33,100 During the period, the company started and completed two jobs-Job C and Job L. Data concerning those two jobs follow: Job C Job L $ 16,900 $ 10,300 $ 23,600 $ 10, 600 Direct materials Direct labor cost Forming machine-hours Customizing machine-hours 1,250 1,250 5,750 1,750 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.…
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated Cost Machine Setups 15 45 $9,600 Assembly Parts 3,000 3,000 143,400 Packaging Pieces 500 400 54,450 Machine Hours per Unit 4 Production Volume 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $ $4
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Product Overhead Labor Hours (dlh) A Painting Dept. $383,130 12,900 dlh 16 dlh 6 dlh Finishing Dept. 86,034 7,800 16 Totals $469,164 20,700 dlh 21 dlh 22 dlh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa. $11.03 per unit Ob. S354.68 per unit Oc. $29.70 per unit Od. $530.35 per unit
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Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead DirectLabor Hours (dlh) Product A B Painting Dept. $374,640 11,200 dlh 16 dlh 2 dlh Finishing Dept. 100,440 8,100 7 17 Totals $475,080 19,300 dlh 23 dlh 19 dlh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a.$622.00 per unit b.$33.45 per unit c.$277.70 per unit d.$12.40 per unit
7:29 1 1 Search Take Quiz Exit Question 3 10 pts Provide the missing piece of information for the following statement of cash flows puzzle. $ 88,000 ? Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash at the beginning of the year Cash at the end of the year (45,000) 77,000 113,000 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Cash flows from Investing Activities « Previous Next Not saved Submit Quiz
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead DirectLabor Hours (dlh) Product A B Painting Dept. $514,836 12,600 dlh 13 dlh 4 dlh Finishing Dept. 64,719 8,100 4 18 Totals $579,555 20,700 dlh 17 dlh 22 dlh Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system. a.$40.86 per unit b.$307.26 per unit c.$563.14 per unit d.$7.99 per unit
company's total overhead cost at various levels of activity is presented below: Month March April May June Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 38,750 $ 31,000 $ 46,500 $ 55,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $8,000 Supervisory salaries (considered fixed) $5,000 Maintenance (considered mixed) $18,000 Total overhead cost $31,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,900 machine hours? ○ $29,600 $29,200 O $30,400 $29,900
XYZ Co. has provided the following data concerning its overhead costs for the coming year: Wages and salaries $ 340,000 Depreciation 120,000 Rent 140,000 Total $ 600,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity Assembly 30,000 labor-hours Order processing 510 orders Other Not applicable The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization- sustaining costs. The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Assembly Processing Other Total Wages and salaries 35% 40% 25% 100% Depreciation 15% 45% 40% 100% Utilities 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to:

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