Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 pcople. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allo- cated. The following schedule reflects the use of the Maintenance Department's and Computing Department's output by the various departments. I Using Department Service Department Maintenance Computing Etching Finishing Maintenance (maintenance hours) 1,000 1,000 8,000 Computing (minutes) 240,000 840,000 120,000

Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 pcople. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allo- cated. The following schedule reflects the use of the Maintenance Department's and Computing Department's output by the various departments. I Using Department Service Department Maintenance Computing Etching Finishing Maintenance (maintenance hours) 1,000 1,000 8,000 Computing (minutes) 240,000 840,000 120,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing department The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of $23 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments Casting Department OA. $401 OB. $472 OC. $1,423 OD. $421 Actual results Direct labor hours used 13 7 Machine hours used The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $2,000. How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates? Finishing Department 5 2
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 Direct LaborHours (dlh) Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.
Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Ryan's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $52 per machine hour, while the finishing department uses a departmental overhead rate of $28 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments: Actual results Casting Department Finishing Department Direct labor hours used 5 12 Machine hours used 4 3 The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $1,800. How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates? Select one: a. $544 b. $1,360 c. $454 d. $596 e. $366
Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $55 per machine hour, while the finishing department uses a departmental overhead rate of $28 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments Finishing Department Casting Department Actual results Direct labor hours used 8 12 Machine hours used 4 The cost for direct labor is $39 per direct labor hour and the cost of the direct materials used by Job A216 is $1,600. What was the total cost of Job A216 if Crane Fabrication used the departmental overhead rates to allocate manufacturing overhead? O A. $1,990 O B. $2,936 O C. $3,156 O D. $2,380
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. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 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 a.$64.00 per unit b.$28.80 per unit c.$99.20 per unit d.$49.60 per unit
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 В Painting Dept. $236,000 11,900 dlh 13 dlh 2 dlh Finishing Dept. 72,200 7,500 15 Totals $308,200 19,400 dlh 18 dlh 17 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. a. $19.25 per unit b. $19.83 per unit c. $31.77 per unit d. $39.66 per unit
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. $250,600 11,900 dlh 5 dlh 10 dlh Finishing Dept. 87,700 10,300 2 7 Totals $338,300 22,200 dlh 7 dlh 17 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $15.24 $259.08 $105.29 $106.68
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. Product Direct Overhead Labor Hours (dlh) B Painting Dept. $256,100 10,600 तlh 7 dlh 8 dlh Finishing Dept. 83,700 11,000 2. Totals $339,800 21,600 dlh 9 dih 15 dih Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. 5169.12 Ob. $15.73 Oc. $235.95 Od. $14157
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. $473,696 11,300 dlh 15 dlh 4 dlh Finishing Dept. 51,744 4,900 5 18 Totals $525,440 16,200 dlh 20 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 a.$357.76 per unit b.$41.92 per unit c.$681.60 per unit d.$10.56 per unit
Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows:Indirect labor $507,000Cutting Department 156,000Finishing Department192,000 ________Total $855,000 _______ The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows:Activity Budgeted Activity Cost Activity BaseProduction control $237,000 Number of production runsMaterials handling 270,000 Number of moves ________Total $507,000 ________ ________The activity-base usage quantities and units produced for the two products follow:Instructions1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is…
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. $477,774 11,400 dlh 12 dlh 4 dlh Finishing Dept. 83,126 8,900 4 20 Totals $560,900 20,300 dlh 16 dlh 24 dlh The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a.$540.28 per unit b.$41.91 per unit c.$9.34 per unit d.$354.44 per unit
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. $231,800 10,900 dlh 15 dlh 7 dlh Finishing Dept. 76,800 6,300 2 18 Totals $308,600 17,200 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