Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Cooper's Bags Company sells the bags in cases of 1500 bags. The bags come in three sizes: Large, Medium, and Small. Currently, Cooper's Bags Company uses a single plant-wide overhead rate to allocate its $7,705,000 of annual manufacturing overhead. Of this amount, $2,260,000 is associated with the Large Bag line, $3,418,000 is associated with the Medium Bag line, and $2,027,000 is associated with the Small Bag line. Cooper's Bags Company is currently running a total of 44,000 machine hours: 14,000 in the Large Bag line, 15,900 in the Medium Bag line, and 14,100 in the Small Bag line. Cooper's Bags Company uses machine hours as the cost driver for manufacturing overhead costs. The plant-wide manufacturing overhead rate would be closest to

Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 26,000 units of Clubs, which retails for $190. The direct materials cost is $24 per unit of Diamonds and $31 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 226,000 direct labor hours. It takes 4 direct labor hours to manufacture Diamonds and 5 hours for Clubs. The total estimated overhead is $678,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. What is the gross profit per unit for Diamonds and Clubs? Gross Profit Diamonds $ per unit per unit B. What is the total gross profit for the year? Total gross profit $ Clubs

The Engine Division of Murphy Motor Corporation uses 5,000 carburetors per month in its production of automotive engines. It presently buys all of the carburetors it needs from two  outside suppliers at an average cost of $100. The Carburetor Division of Murphy Motor Corporation manufactures the exact type of carburetor that the Engine Division requires. The Carburetor Division is presently operating at its capacity of 15,000 units per month and sells all   of its output to a foreign car manufacturer at $106 per unit. Its cost structure (on 15,000 units) is: Variable production costs $70 Variable selling costs 10 All fixed costs 10 Assume that the Carburetor Division would not incur any variable selling costs on units that are transferred internally. Refer to Murphy Motor Corporation. What is the minimum of the transfer price range for a transfer between the two divisions?

Cowboy Ice Cream Company (CIC) produces ice cream bars that it markets through a variety of grocery stores. It makes the ice cream bars in batches of 2,000 units. CIC produced 36,000 ice cream bars during the prior accounting period. The cost of producing the ice cream bars is shown below. Materials cost ($29 per unit x 36,000) Labor cost ($26 per unit x 36,000) Manufacturing supplies ($9 x 36,000) Batch-level costs (18 batches at $6,000 per batch) Product-level costs $1,044,000 936,000 324,000 108,000 300,000 370,000 Facility-level costs Total costs $3,082,000 Cost per unit = $3,082,000 + 36, 000 = $85.61 Required a. OnCue has offered to buy a batch of 500 ice cream bars for $68 each. CIC's normal selling price is $93 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should CIC accept the special order? b. OnCue offered to buy a batch of 2,000 ice cream bars for $68 per unit, calculate the relevant cost per unit for the…

Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Product A: (machine hours= 1,200) (number of batches 55) Product X: (mahine hours= 3,200) (number of batches 18) Totals: (Machine hours= 4,400) (number of batches 73) What is the amount of Machining cost assigned to Product X?

Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 28,000 units of Clubs, which retails for $200. The direct materials cost is $25 per unit of Diamonds and $29 per unit of Clubs. The labor rate is $30 per hour, and Five Card Draw estimated 184,000 direct labor hours. It takes 3 direct labor hours to manufacture Diamonds and 4 hours for Clubs. The total estimated overhead is $736,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. What is the gross profit per unit for Diamonds and Clubs? Gross Profit Diamonds $ _____ per unit Clubs $ _____ per unit B. What is the total gross profit for the year? Total gross profit $ ______

Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm and total overhead of 474000. the company plans to manufacture 400 downy mattresses and 100 firm mattresses this year. in manufacturing the mattresses, the company must perform 600 material moves for the downy and 400 for the firm. it processes 900 purchase orders for the downy and 700 for the firm. the companys employee work 1400 direct labor hours on the downy product and 3400 on the firm. sleep tights total material handling costs are 300000 and its total purchasing costs are 174000 using abc how much overhead would be assigned to the downy product? 1. 237,0002. 277,8753. 196,1254. 335,750

Wall Nuts, Incorporated produces paneling that requires two processes, A and B, to complete. Oak is the best-selling type of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table:  Direct materials $ 380,000   Direct labor     Department A (6,000 DLH × $25 per DLH) $ 150,000   Department B (35,125 DLH × $16 per DLH) $ 562,000   Machine Hours     Department A 24,000 MH Department B 32,000 MH   Wall Nuts' total expected overhead costs and related overhead data are shown below.    Department A Department B Direct labor hours 67,000 DLH 170,000 DLH Machine hours 100,000 MH 80,000 MH Budgeted overhead costs $ 450,000   $ 600,000   Use the data for Wall Nuts, Incorporated to compute the dollar amount of overhead applied to each unit of oak paneling, assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.